Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Metromedia International Group (MMG) Looking for Opinions -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (207)	12/9/1998 3:24:00 PM
From: TheSlowLane	Read Replies (1) \| Respond to of 353

From Individual Investor Online: Sell-Off in Metromedia Stock Makes the Shares Ultra-Cheap (12/9) Individual Investor Online Analysis Investors continue to punish Metromedia (AMEX:MMG). Since the end of November, the stock declined 23%, to around $3.50 per share. The sell off is primarily caused by anxiety related to economic uncertainty in some of Metromedia's key markets. Although these concerns are justifiable, we believe that shares of the company are completely mispriced. As of the end of the third quarter, Metromedia had $175 million, or $2.50 per share, in cash and equivalents, which means that investors value Metromedia's overseas communications holdings and the company's lawn and garden equipment business, Snapper, at only $0.94 per Metromedia share. It should be noted that, on the price-to-current revenue run rate basis, the Snapper business alone could add approximately $1 per share to the stock price, assuming that the segment sports a multiple of 0.28 to 0.3 times, or that of Snapper's closest competitor, the Toro Company. However, the principal value of Metromedia, at this point, is in strategic communications assets, i.e. cable and wireless telecommunications networks and operating licenses to provide service. Considering the fact that the company remains one of the market leaders within several fast-growing metropolitan regions in Eastern Europe, including Moscow and St. Petersburg, Metromedia's assets within these markets could be worth hundreds of millions, or way above the current valuation of the Communications Group. We should also point out that based on his track record, billionaire John Kluge, Metromedia's Chairman, remains one of the masters in unlocking this hidden value. Analyst: Alex Yakirevich