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Strategies & Market Trends : CAVALRY'S SHORT BUSTERS - MAGIC EIGHTBALLS PICKS -- Ignore unavailable to you. Want to Upgrade?

To: Ellen who wrote (326)	9/13/1998 11:29:00 AM
From: Cavalry	Read Replies (1) \| Respond to of 1637

ellen sbgi makes no sense to me why the dumping? why the short position? they keep making awesome deals and authorized share repurchase here is latest deal they did Sinclair to Buy Guy Gannett TV Stations for $310 Million;Deal Adds Six Stations in Five Markets for Sinclair Expects to Sell Gannett's WOKR-TV Rochester, NY to Ackerley BALTIMORE, Sept. 8 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) today announced that it has agreed to purchase the television station assets of Guy Gannett Communications for $310 million in cash. The acquisition is subject to FCC and Justice Department approvals and is anticipated to be completed in the first quarter of 1999. In addition, Sinclair announced that it expects to sell Gannett's WOKR-TV in Rochester, NY to The Ackerley Group, Inc. (NYSE: AK). Sinclair already owns WUHF-TV in the Rochester market. David Smith, CEO of Sinclair, said, "The acquisition of the Gannett stations strengthens station clusters in the Northeast and the Midwest, and adds to our growing presence in Florida. The stations have excellent growth potential. We look forward to working with the employees of the stations to enhance the strong broadcasting tradition that Guy Gannett has built in these communities, while bolstering the profit margins of the stations." Barry Baker, CEO-Designate of Sinclair Communications, said, "The acquisition of these stations also furthers Sinclair's strategy of diversifying its network affiliations. From a financial perspective, the acquisition multiple of 12.6 times projected 1999 broadcast cash flow is lower than recent transactions announced by other broadcasters. The acquisition of these assets also improves Sinclair's tax position and thus management expects the transaction will be accretive to 1999 after-tax cash flow per share." The stations Sinclair will be retaining from the Gannett acquisition are as follows: Market Market Rank Station Affiliation Portland, ME 80 WGME-TV CBS Champaign & Springfield-Decatur, IL 81 WICS-TV NBC WICD-TV (Simulcast) NBC Cedar Rapids, IA 87 KGAN-TV CBS Springfield, MA 103 WGGB-TV ABC Tallahassee, FL 112 WTWC-TV NBC The Gannett television stations WICS-TV and WICD-TV in Champaign & Springfield-Decatur, IL, have overlapping service areas with Sinclair's WYZZ-TV in Peoria, IL and KDNL-TV in St. Louis, MO. KGAN-TV in Cedar Rapids, IA, has an overlapping service area with KDSM-TV in Des Moines, IA. Consequently, Sinclair will apply for waivers from the FCC to allow Sinclair to own each of these stations. Sinclair expects to fund the transaction with a combination of bank borrowings and the issuance of debt or equity securities. The Company may also enter into divestitures of certain non-strategic assets to provide a portion of the funding. The final composition of the financing will be determined in the months prior to the closing of the transaction and will be impacted by a number of factors. Such factors may include, but are not limited to, the strength of the Company's operating performance, borrowing availability under the Company's bank credit facility and conditions in the capital markets. Sinclair Broadcast Group, Inc. is a diversified broadcasting company that currently owns or programs 56 television stations and 54 radio stations. Upon completion of all pending transactions, Sinclair will own or program 64 television stations in 42 separate markets and 51 radio stations in 10 separate markets. Sinclair's television group will reach approximately 24.4% of U.S. television households and includes ABC, CBS, FOX, NBC, WB and UPN affiliates. Sinclair's radio group is one of the top 10 groups in the United States.

To: Ellen who wrote (326)	9/13/1998 11:37:00 AM
From: Cavalry	Read Replies (1) \| Respond to of 1637

ellen here is announcement for sbgi to repurchase shares, all i can think of right now is disney preannounced dissappointing earnings part of which was due to drop in earnings from abc-tv, maybe broadcast stocks got pounded, sbgi looks good to me now. they own 56 television stations and 54 radio stations they have done a string of aquisitions which helped boost its second revenue by 30%. the company seeks to build groups of tv and radio stations in various small to mid-size markets so it can offer advertisers more options and at the same time charge higher rates. need to dig in their edgars filings see if i can find a rat. PR Newswire - September 01, 1998 14:04 BALTIMORE, Sept. 1 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) today announced it will re-activate its previously announced share repurchase program. The $50 million program, first announced in 1995, has been used from time to time to buy back approximately $5.3 million worth of Sinclair's Class A Common Stock. "With our Class A Common Stock trading at these levels, management and the Board of Directors feel that it is imperative to buy back our stock," said David Smith. "We feel that Sinclair, with its diversified asset mix, orientation toward growing television networks, superb radio division, and experienced management team, is a good investment." Subject to market conditions and general business conditions, Sinclair intends to repurchase shares on the open market or through negotiated private transactions from time to time. Depending on availability under its bank agreement and the status of its acquisition program, Sinclair may consider expanding the repurchase program if, in the opinion of management, the stock price remains undervalued. Sinclair expects to fund the repurchases with bank borrowings. Sinclair Broadcast Group, Inc. is a diversified broadcasting company that currently owns or programs 56 television stations and 54 radio stations. Upon completion of all pending transactions, Sinclair will own or program 58 television stations in 37 separate markets and 50 radio stations in 10 separate markets. Sinclair's television group will reach approximately 22.9% of U.S. television households and includes ABC, CBS, FOX, NBC, WB and UPN affiliates. Sinclair's radio group is one of the top 10 groups in the United States.