Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)

CAPS Rating: 3 out of 5

The Company is a diversified television broadcasting company that owns or provides certain programming, operating or sales services to more television stations than any other commercial broadcasting group in the United States.


Player Avatar kristm (99.73) Submitted: 10/16/2009 10:38:11 PM : Outperform Start Price: $1.66 SBGI Score: +1,422.13

Just like oil, advertising is cyclical - so businesses that generate most (or all) of their revenue from advertising tend to be cyclical as well. Sinclair's advertising revenue is down right now? Well EVERYBODY's advertising revenue is down right now. The best way to handle cyclical stocks in a beaten down segment is to find the one with the best chance of survival, the one that will thrive and grow more than most of its competitors when its segment recovers.

Sinclair still has a good position and a strong future when things pick back up, it's just being beaten down along with (and somewhat beyond) its peers. Buying Sinclair over the summer is comparable to purchasing Exxon-Mobil during the last period of cheap oil. I picked it on Caps and then picked up some for my real portfolio too. I'm up over 120% in about two months and it's still sporting a P/E ratio below 2. Great buy in August, pretty good buy in October. You might want to hop on this train before it gets pricier.

(Do note that I have shares in my real portfolio so if you buy now you're benefitting me. Good thing it also benefits you or this might come across as too self-serving.)

Member Avatar kristm (99.73) Submitted: 9/28/2012 1:09:06 PM
Recs: 0

Man did I clean up with this one in my real portfolio. Glad I listened to myself.

Featured Broker Partners