Should you be serious about Sirius?
In the last 30 days the broadcasting stocks have been strong and Sirius is the strongest of the bunch
Back when I was a student I used to spend hours in the library reading Trendlines and Value Line. I learned two important lessons: always know what industries are presently enjoying the best price momentum and then find the best companies in those industries. According to Barchart the strongest industry in the last 30 days has been the broadcasting industry. I begin my search by sorting the industry for the stocks having the best current relative strength and limit my research to the top 10.
To help me whittle down the list I use Barchart's 13 technical indicators and eliminate those that rank below 100% on all 13 indicators. Last, I want to make sure that the stock had a price appreciation in the last 5 days. I'm left with just 4 stocks. Let's research them one at a time.
Sirius XM (SIRI) -- according to its press release: "Sirius Satellite Radio is building a digital satellite radio system that will broadcast up to 100 channels of music and entertainment programming to motorists throughout the continental United States. The company plans to offer channels of commercial-free music and channels of news, sports and entertainment programming for a monthly subscription fee. Sirius Satellite Radio has an exclusive agreement with Ford Motor Company to install Sirius receivers in Ford vehicles."
The stock had 8 price advances in the last 20 sessions and increased in 4 of the last 5 days. It has a buy on all 13 of Barchart's technical indicators and had a 56.72% increase in the last 30 days.
On the fundamental side analysts estimate that sales will increase 11.2% next year with a whopping 91.7% increase in earnings per share. The 5 year compounded growth rate is expected at 30% per year. They give the stock 3 buy and 3 hold recommendations.
Lin TV Corp (TVL) -- LIN TV Corp. is a pure-play television company covering the United States and Puerto Rico. They own and operate television stations and provide management or sales services to television stations. Under local marketing agreements, they provide substantial portions of the broadcast programming for airing on another station in the same market as a station they own and operate and sell advertising time for that station.
The stock has enjoyed price appreciation in 10 of the last 20 sessions and had 3 increases in the last 5 days. It too gets 100% rating on all 13 of Barchart's technical indicators and had a 27.38% price increase in the last 20 sessions.
Analysts consensus is for a 23.7% increase in sales and a 1133% increase in EPS. Sounds big but that's voodoo math coming from a loss this year. There is only 1 hold recommendation out there.
Global Traffic Network (GNET) -- Global Traffic Network is a provides custom traffic and news reports to radio and television stations outside the U.S. The Company is a Delaware corporation that, through its two wholly-owned operating subsidiaries, provides customized traffic and news reports to affiliated radio and television stations, in exchange for commercial airtime inventory. The Company operates traffic and news network in Australia, and is quickly ramping operations in Canada. In exchange for providing custom traffic and news reports, television and radio stations provide Global Traffic Network with commercial airtime inventory that the Company sells to advertisers. As a result, radio and television stations incur no out-of -pocket costs when contracting to use Global Traffic Network's services.
Again this stock hits 13 out of 13 for Barchart's technical indicators. The stock had 10 price increases in the last 20 sessions and is 3 for 5 recently. The price increase in the last 20 sessions was 12.67%.
Analysts expect a 10.3% increase in sales and earnings increase of 1050%, coming off a loss. Recommendation of 3 buys and a hold are there.
Sinclair Broadcast Group (SBGI) is the last to make the cut. Sinclair Broadcast Group is a diversified broadcasting company that owns or provides programming services pursuant to local marketing agreements to more television stations than any other commercial broadcasting group in the United States.
With all 13 of Barchart's technical indicators signaling buy the stock had 4 price appreciations in the last 20 session but is 3 for 5 recently. 19.46% price increase in the last month isn't bad.
Fundamentally this is the weakest stock with revenue expected to decrease by 1.2% next year but earning up 10.2%. With only a 3% growth rate consensus for the next 5 years the stock still enjoys 2 buy and 2 hold recommendation from analysts.
I'm not sure what your opinion is but it sounds like Sirius XM Radio (SIRI) is the pick from this bucket of broadcasting stocks. Yes this is a penny stock trading at close to a dollar a share but with volume up to 9 million shares a day, it's a penny stock we can all love.
For more information on Sirius please ckeck these related atricles
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions at the time of publication
Copyright © 2014 Microsoft. All rights reserved.
Even if you're a full-on bull for certain picks, it's helpful to know how negative the bets are against them.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.