Cumulus stock worth less than a candy bar !!! - Page 2
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Thread: Cumulus stock worth less than a candy bar !!!

  1. #11
    Quote Originally Posted by DavidEduardo View Post


    That's not how a reverse split works. "They" didn't get the other 7. If there were 7 million shares before, there are 1 million now. The idea was to have each new share worth 7 times the value of one previous share.

    Share price does not determine the survivability of a station group. The balance sheet and P&L decide that.
    Correct. The stock was split to avoid being de-listed on NASDAQ. Share price must be maintained above $1/share. If below $1/share for a prescribed period the stock is de-listed. It would then go to a less traded board...
    BTW..12% jump today after 3P. Volume was 10 times normal. Anybody know what's up?

  2. #12
    Quote Originally Posted by DavidEduardo View Post
    Share price does not determine the survivability of a station group. The balance sheet and P&L decide that.
    And Cumulus's balance sheet looks pretty decent. $33 million in net profits in the first 3 quarters of 2016, and their cash position has been improving. They haven't been actively paying down the debt in recent quarters, but as TheBigA said they began doing so in the 4th quarter. Their 4th quarter earnings next month should be very interesting.
    "Its music what makes a radio station, and at Live FM, we play the last music around."
    After receiving that copy, I quit the VO industry.

  3. #13

  4. #14
    Quote Originally Posted by PTBoardOp94 View Post
    And Cumulus's balance sheet looks pretty decent. $33 million in net profits in the first 3 quarters of 2016, and their cash position has been improving. They haven't been actively paying down the debt in recent quarters, but as TheBigA said they began doing so in the 4th quarter. Their 4th quarter earnings next month should be very interesting.
    There is a part of me that says I should buy a couple thousand shares of Cumulus stock...there's another part that completely agrees with Leslie Moonves and can see no real growth in radio,as a business or as an investment.

  5. #15
    Quote Originally Posted by wavo View Post
    There is a part of me that says I should buy a couple thousand shares of Cumulus stock...there's another part that completely agrees with Leslie Moonves and can see no real growth in radio,as a business or as an investment.
    It depends on what you consider "real growth." All the stock has to do is go up ten cents and that's a 10% increase in value. That's not a common thing.

    I'm not advocating you buy, but just saying that growth for them is different than growth for CBS.

  6. #16
    Quote Originally Posted by TheBigA View Post
    It depends on what you consider "real growth." All the stock has to do is go up ten cents and that's a 10% increase in value. That's not a common thing.

    I'm not advocating you buy, but just saying that growth for them is different than growth for CBS.
    Good point!
    Had I bought those couple thousand shares two days ago I would have seen a two day profit of over 15%.
    Have you (Big A) bought any Cumulus shares at the (before the split) price of $0.15/share?
    Where do you see Cumulus one year from now?

  7. #17
    Quote Originally Posted by wavo View Post
    Have you (Big A) bought any Cumulus shares at the (before the split) price of $0.15/share?
    Where do you see Cumulus one year from now?
    No I haven't bought any Cumulus shares. Not my kind of company.

    One year from now, it depends on if they're able to carry out the plans they've put in place. If they can close on the land sales, finalize the debt deals, and begin to turn around the revenue situation, particularly in the bigger markets, they'll be in better shape. But I'm really concerned about the lack of a digital strategy, and the lack of investment in areas outside of traditional radio. That's why I'm not buying. Compare it to CBS, which has multiple investments in digital and live events. That's a far more balanced approach.

  8. #18
    Quote Originally Posted by TheBigA View Post
    No I haven't bought any Cumulus shares. Not my kind of company.

    One year from now, it depends on if they're able to carry out the plans they've put in place. If they can close on the land sales, finalize the debt deals, and begin to turn around the revenue situation, particularly in the bigger markets, they'll be in better shape. But I'm really concerned about the lack of a digital strategy, and the lack of investment in areas outside of traditional radio. That's why I'm not buying. Compare it to CBS, which has multiple investments in digital and live events. That's a far more balanced approach.
    Possibly they are concentrating on the core business, radio, as they should be. You, and others, might argue digital and NTR are core business for radio in 2017.
    I remember Lew's Sweetjack idea and what an abortion that effort was. What, in your opinion, should be the digital and NTR direction for radio? I know each station is different but where, generally, should efforts be made in these areas?

  9. #19
    Quote Originally Posted by wavo View Post
    What, in your opinion, should be the digital and NTR direction for radio? I know each station is different but where, generally, should efforts be made in these areas?
    Anything is better than nothing, which is what they're doing. I've always been taught to diversify your business and investments, and they're not doing that. But then again, they have no money to invest, so it doesn't matter. That's why Lew is gone. He blew his $2 billion on transmitters and towers. Compare that with what Entercom did. Who made the wiser use of investment money?

  10. #20

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    Quote Originally Posted by TheBigA View Post
    But I'm really concerned about the lack of a digital strategy, and the lack of investment in areas outside of traditional radio.
    They invested in Rdio, which is now kaput. I had thought that Cumulus was going to turn Rdio into an iHeartRadio competitor once their exclusive streaming deal with iHeartRadio ran out. Speaking of that deal, where Cumulus made iHeartRadio the exclusive streamer of Cumulus stations in exchange for iHeartClearChannel stations promoting SweetJack, was obviously a much better deal for iHeartClearChannel than Cumulus, now that there's not much left of SweetJack (now Sweet Deals).

    How much time is left on the Cumulus agreement with iHeartRadio? I'd like for Cumulus stations to also be streamable on TuneIn.

    If you want to make money on CMLS in the foreseeable future, I guess you could day-trade it like a penny stock. Caveat emptor.

    SweetJack got killed when the Groupon daily-deal/online-coupon ship was swamped by all of the other established media companies invading that space, like Gannett (Value Clipper, Local Flavor, etc.) and Cox (Valpak) that already had a dead tree coupon presence and for which digital was a logical extension. Cumulus could have made SweetJack a contender with a radio+online advertising model, but they didn't bring anything new to the table vs. entrenched incumbents like Gannett/Cox or dangerously desperate digital pure-plays like Groupon.
    "When broadcasting over the radio, there are certain words we must omit.
    Like 'BEEP' and 'BUZZ' and 'GOBBLE-GOBBLE', by gosh we can't even say shhhhhaving cream!"

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