Glacier Media
gets no press. This is of course ironic, since it produces a lot of it,
and in multiple channels. Recently,
however, the off-the-grid company was the subject of a piece by Norman Rothery on
the Globe and Mail's website. The article has a number of strengths. The writer points out that Glacier Media now
sports an attractive 4.3% dividend yield; he explains the lack of interest in
the stock by noting how thinly traded it is, which precludes many large
investors from forging a position; and he offers an interesting and telling
anecdote about Tim McElavine, who I've recently commented on here.
The article has two
weaknesses, though. First, in making a
case that the company is undervalued, Rothery cites Glacier's earnings per
share, and notes that it compares favorably to the stock price. However, because of large amortization
expenses from past acquisitions, free cash flow is a more accurate estimation
of earning power, and is significantly higher than EPS. Secondly, he fails to emphasize the basic
difference between Glacier's community newspapers, which largely enjoy natural monopolies
in local markets, and larger newspapers, which have weaker competitive
positions.
Glacier's
shareholders will be happy that the company's story may finally be starting to
spread; however, it's a better tale even than some fellow shareholders know.
Source: http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/value-investing/glacier-media-a-media-stock-thats-worth-buying-really/article8397256/
Here is my investment analysis of Glacier Media.
Here is my investment analysis of Glacier Media.
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