Beasley Broadcast Group, Inc. (NASDAQ:BBGI)
A radio broadcasting company whose business is acquiring, developing and operating radio stations throughout the United States.
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Terrestrial Radio is dead! With all the competition out there, terrestrial radio is loosing market share while reducing prices on advertising, all of which adds up to dead companies. Satellite Radio, iPods, MP3s, Cell phones with streaming music, music over Internet and WiFi... Too much competition for a terrestrial provider to survive. The only terrestrial providers that will survive are the ones that have alternate sources of income such as a television station or newspaper distribution. Otherwise, say goodbye too all but the best terrestrial providers.
Recs
They're fairly deep in debt and their market share isn't really going anywhere. Why are they still paying a dividend? Additionally, check out their PEG ratio of over 7.
Recs
BBGI has been able to improve its same station revenues while keeping costs fairly flat from 2005 to 2006; they will be making heavy investments in the Philidelphia market so this trend may not continue into the future. Another risk to this stock is the radio industry overall has experienced competition from other media such as MP3 players, music streaming sites and satellite radio. However, virtually all of BBGI's markets are experiencing postiive growth, most in the low single digits range.
Recs
This stock's cyclical nature makes it a great one to buy low and sell high again and again. I believe it has bottomed out at just over $6 per share and will continue to rise in the coming months.
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