Hielko Posted April 18, 2012 Share Posted April 18, 2012 Happy SALM owner here too, but one thing I don't like is that the CFO indicated that they are probably going to reduce the debt with just 15M this year instead the max 30M that is callable. Why pay a dividend if you don't have enough free cash flow to use a valuable call option? :( Link to comment Share on other sites More sharing options...
Hielko Posted May 4, 2012 Share Posted May 4, 2012 Just looked at the Q1 results and listened to the conference call, and seems to me that things are going fine. Management expected to make ~$1 in FCF/share for 2012 and the deleveraging is also continueing nicely. Link to comment Share on other sites More sharing options...
Packer16 Posted May 4, 2012 Author Share Posted May 4, 2012 It appears the results although up did not meet the analyst's expectations. At 5.0x FCF or 20% FCF yield this stock is still reasonably priced. Packer Link to comment Share on other sites More sharing options...
rijk Posted August 15, 2012 Share Posted August 15, 2012 this guy was buying just over $3 earlier this year....... regards rijk http://www.sec.gov/Archives/edgar/data/1050606/000118143112045550/xslF345X03/rrd353492.xml Link to comment Share on other sites More sharing options...
JEast Posted August 15, 2012 Share Posted August 15, 2012 Mr. Riddle has been a Director for 15 years. The stock is still cheap, but expenses are rising a little for delayed pay raises and such that has slowed the progress on the bottome line somewhat. Cheers JEast Disclosure: Long SALM Link to comment Share on other sites More sharing options...
rijk Posted August 22, 2012 Share Posted August 22, 2012 another insider sale, insignificant amount, but again a message that insiders believe it's time to cash out...... regards rijk http://www.sec.gov/Archives/edgar/data/1050606/000118143112046834/xslF345X03/rrd354026.xml Link to comment Share on other sites More sharing options...
Hielko Posted August 23, 2012 Share Posted August 23, 2012 Don't think you should read a lot in a small option exercise and sale. It's insignificant compared to what insiders own, and there can be many reasons for selling. Link to comment Share on other sites More sharing options...
Hielko Posted November 8, 2012 Share Posted November 8, 2012 Results from the latest Quarter: http://investor.salem.cc/press-releases/salem-communications-announces-increase-in-third-q-nasdaq-salm-0951350 Looks mostly like business as usual to me. One thing that disappointed me is that apparently the company will be calling just 4M of debt the next quarter while they are allowed to call 12.5M, and at the same time they use cash flow to pay a dividend. Not an optimal use of capital imo since the debt is trading significantly above par. Link to comment Share on other sites More sharing options...
JEast Posted February 27, 2013 Share Posted February 27, 2013 Another solid quarter recently reported. I have been pleased with the steady progress after the company was placed in a tough situation needing to refinance at the worst of the cycle (2009). In all, the company is run as a family business but one that has treated shareholders fairly. Plus they just announced their refinancing of the high debt incurred in 2009. The refinancing was expected this year, but not this early. Shouts out to Packer16 on the idea. Still undervalued below $6 for you folks sitting on a bunch of cash. Cheers JEast Disclosure: Been long for several years. Link to comment Share on other sites More sharing options...
Packer16 Posted February 27, 2013 Author Share Posted February 27, 2013 I also liked the internet organic growth of 13% (now 17% of revenue) which has increased the overall growth to 6% from 3% without internet and will keep revenues growing in excess of the core radio business of 2 to 3%. In addition about 25% of income comes from internet. The margins for internet have been pretty good at 29%. The refi should add $7 to $9 million to FCF which will approach $30 million. They should also increase the dividend as a result. Packer Link to comment Share on other sites More sharing options...
Packer16 Posted March 16, 2013 Author Share Posted March 16, 2013 The refi added more to FCF than I thought. They were able to refi at a 4.5% interest rate! Given the new rate it implies a FCF of $32.6 million, so the current FCF multiple is 5.0x with a growth rate of 3 to 6%. Packer Link to comment Share on other sites More sharing options...
Hielko Posted March 16, 2013 Share Posted March 16, 2013 That's a floating rate though, it's probably going to cost some money to hedge it and turn it in a fixed rate (they are required to do this according to the debt covenants). But yes, I also liked the news :). Recently sold 50% of my position, but keeping the other half. Link to comment Share on other sites More sharing options...
Packer16 Posted March 16, 2013 Author Share Posted March 16, 2013 If you like these type of media cash flow companies, you may want to look at Lin TV. It is selling at discount to others in the space due to its converting from a C-Corp to an LLC. Packer Link to comment Share on other sites More sharing options...
JEast Posted March 16, 2013 Share Posted March 16, 2013 Yes, the refi is nice, but also a little surprised on the floating rate and would have preferred a fixed rate. I guess they could pay up to fix it though. The company is now on solid ground with a good cash flow that may be more recognized in the market over the next 12 months. If we get a pull back in the markets, may add more as we have not sold any of our position with the rocognition that BV will be $10 in 2014 on a $6 stock. Cheers JEast Link to comment Share on other sites More sharing options...
Hielko Posted March 16, 2013 Share Posted March 16, 2013 If you like these type of media cash flow companies, you may want to look at Lin TV. It is selling at discount to others in the space due to its converting from a C-Corp to an LLC. Packer 540M market cap, and 142M in FCF. What's the catch? Link to comment Share on other sites More sharing options...
Packer16 Posted March 16, 2013 Author Share Posted March 16, 2013 Part of it is the sector and the firm is not liked. TVL also purchased a station group recently which should increase 2-yr avg FCF to $134 million. This implies a 25% FCF yield with some nice historic and future growth. As a result of the aforementioned conversion there will be some forced selling to pay taxes when the conversion takes place. Packer Link to comment Share on other sites More sharing options...
Hielko Posted March 17, 2013 Share Posted March 17, 2013 As a result of the aforementioned conversion there will be some forced selling to pay taxes when the conversion takes place. I'am not that familiar with US taxes. How how does this work? Link to comment Share on other sites More sharing options...
Packer16 Posted March 17, 2013 Author Share Posted March 17, 2013 What happens is some folks are going to have to pay taxes on gain from purchase to time of conversion. So folks that bought at a price below the conversion price (in a taxable account) will have to pay taxes when the conversion takes place. If they don't have cash, they will have to sell some stock to pay the taxes. I don't know how big of an issue this is but it may cause some selling pressure. Packer Link to comment Share on other sites More sharing options...
JEast Posted March 18, 2013 Share Posted March 18, 2013 As expected, but much sooner, the board raised the dividend 43% after the recent refi. http://finance.yahoo.com/news/salem-communications-increases-quarterly-cash-130000888.html Cheers JEast Link to comment Share on other sites More sharing options...
Hielko Posted March 18, 2013 Share Posted March 18, 2013 As expected, but much sooner, the board raised the dividend 43% after the recent refi. http://finance.yahoo.com/news/salem-communications-increases-quarterly-cash-130000888.html Cheers JEast Nice. That's a bigger increase than I would have expected. Guess I sold some shares a bit early... Link to comment Share on other sites More sharing options...
Packer16 Posted April 9, 2013 Author Share Posted April 9, 2013 I have recently sold this at 9.4x EBITDA and 7.1x FCF. There are other media firms I find cheaper and have switched to one of those. Packer Link to comment Share on other sites More sharing options...
Hielko Posted April 9, 2013 Share Posted April 9, 2013 Have to admit that I also sold the last part of my position recently. Link to comment Share on other sites More sharing options...
fenris Posted April 9, 2013 Share Posted April 9, 2013 I have recently sold this at 9.4x EBITDA and 7.1x FCF. There are other media firms I find cheaper and have switched to one of those. When you say media do you still focus on broadcast? Link to comment Share on other sites More sharing options...
Packer16 Posted April 10, 2013 Author Share Posted April 10, 2013 It was in cable/telecom (General Commmunications). I already have enough broadcast TV firms. Packer Link to comment Share on other sites More sharing options...
LanceSanity Posted May 2, 2015 Share Posted May 2, 2015 Has anyone kept up with this stock? It is now $5. Link to comment Share on other sites More sharing options...
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