Clear Channel Outdoor (CCO) is the leading outdoor advertising company, one that's majority owned by Clear Channel Communications. The stock is now at eighteen-month highs after the market pushed the stock over $9 earlier this month, jumping 11% in a single day, but now the stock looks to be in overbought territory. Its current valuation is way out of line with how the company is operating and it has a serious corporate governance issue. This, and its outsized debt, helps build the case that Clear Channel Outdoor deserves to trade at discounted multiples to the market and major peers, suggesting 40% downside.
Clear Channel has a fairly simple business model, providing advertising via billboards,...
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