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Over the last few years we have traded in and out of media names based on where we saw attractive valuations or special situations. In most cases we utilized companies that were mostly pure plays in what
Nexstar Media Group: Not Your Typical Local Television Play
Summary
- NXST has used its position as one of the largest local television broadcasters to rebuild the company and capitalize on the shift in the media landscape.
- The company increased its dividend by 50% in January, and if management can continue to grow NewsNation and stem losses at The CW, we believe that the dividend goes higher.
- Even with $7 billion+ in debt, the company has plenty of maneuverability and only a small headache with the floating rate debt that is unhedged.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
While we do not personally have exposure to NXST, clients have exposure via holdings (directly and indirectly). After the market holiday we might add exposure to our personal portfolios.
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