Liberty Media Corp (Capital) (NASDAQ:LCAPA)

CAPS Rating: 3 out of 5

Engaged in the video and on-line commerce, media, communications and entertainment industries in North America, Europe and Asia.

Recs

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Player Avatar Babachrono (76.89) Submitted: 6/4/2009 8:07:39 AM : Outperform Start Price: $14.26 LCAPA Score: +389.90

10% insider and 84% institutional ownership. Debt to cash is a little higher than I normally like too.

However, they made a great deal with Sirius, and contrary to popular belief, SIRI isn't going anywhere for a long time (I'm also long SIRI). Yes they're hurting, but they're stable and while flat now, over the next 2-4 quarters will start to turn up. This only adds to the huge returns for Liberty.

Their deal is great, the EV from that deal alone justifies LCAPA's current price, not to mention the other items that they own. The debt is in part due to Liberty snatching up lots of stuff cheap during this recession which is great.

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