Paramount Global: Upside Potential On Turnaround To Earnings Growth

Cash Builder Opportunities
Investing Group Leader

Summary

  • PARA has continued to struggle after announcing poor Q1 results that also came with the announcement of a dividend cut.
  • The dividend cut should help their balance sheet, and it wasn't too surprising since they were running negative FCF anyway.
  • Management expects to be FCF-positive next year, and their DTC business continues to grow sales rapidly with strong subscriber growth for Paramount+.
  • I also share an update on writing puts with a trade that recently expired worthless, locking in the options premium.
  • This idea was discussed in more depth with members of my private investing community, Cash Builder Opportunities. Learn More »

TCA Paramount+

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Written by Nick Ackerman. A version of this article was included in our Cash Builder Opportunity weekly options expiration update originally posted on July 7th, 2023.

Paramount Global (NASDAQ:PARA) continues to struggle. I'm remaining long the

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This article was written by

Cash Builder Opportunities
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Cash Builder Opportunities (aka Nick Ackerman) is a former fiduciary and a registered financial advisor with 14 years of investing experience.

He is the leader of the investing group Cash Builder Opportunities, where his specific focus is on closed-end funds, dividend growth stocks, and option writing as an attractive way to achieve income. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PARA either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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