Gray Television: The Unlikely Winner Amid Adverse Industry Regulation
- With FCC regulation limiting joint sales agreements (JSA), the overall broadcasting sector has been dealt a huge blow.
- However, unlike its rivals, Gray Television (the cleanest in terms of JSA usage) is likely to emerge relatively unscathed or even stronger, fundamentals-wise.
- Double-digit FCF yield (11-12% in 2014-15) is mainly due to a 30% share price decline YTD and overlooked acquisition effect.
- Compelling risk reward has arisen: an attractive (almost) 6 to 1 upside to downside ratio.