VIAB (Viacom Class B shares) formerly CBS Message Board

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Technology Stocks : VIAB (Viacom Class B shares) formerly CBS

VIA 36.49

+1.1%

Nov 25 3:59 PM EST

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To: joarel who wrote (3051)	12/20/1998 4:49:00 PM
From: MGV	Read Replies (1) of 4613

You can bet on at least one radio and/or O&O broadcasting and/or outdoor advertising acquisition in the next 3-6 months. The network will be breakeven or better in CY 99. Its value will never be lower than it has been in the 2nd half of '98. It is worth $4-6B ($6-$9 per share). Assuming the network is at least breakeven in '99, the higher range of value will prevail. The share buyback program is a powerful support. The gain from Infinity and the strong O&O cash flow will allow CBS to prepay its pension obligation ($800M) and thereby further reduce expenses on income statements going forward. Infinity itself is worth $23 per share to CBS at today's price. With 2 forward quarters results under its belt, it will be worth $30 by mid year. At $30 share price it equates to $28 in CBS stock. Bottom line: Based on industry multiples, CBS should be at $45 by 12/99 assuming no worse than a flat S&P500. The key will be reversing network sentiment. To do that, CBS needs to show no worse than breakeven on cash flow from the network. Counter opinions and debates are welcome.

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