Uncharted and Choppy, But Very Capable To Navigate

Friday, May 8, 2020

Gray Television Inc. (GTN)

Uncharted and Choppy, But Very Capable To Navigate

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

Michael kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 largely in line, beats our Adj. EBITDA estimate. While Q1 revenues were lighter than expected ($534 million versus $542 million), the company overachieved our Adjusted EBITDA estimate ($168 million versus $163 million). The revenue variance was due to the fall-off in advertising in March as mitigation efforts of the Coronavirus took hold.

    Q2 appears better than many. Core advertising appears to be down roughly 33%, slightly better than some peers that have indicated Q2 core to be down 35% to 40%. Company reaffirms Political advertising expectations in the range of…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Akazoo (SONG) – Unanswered Questions

Friday, May 1, 2020

Akazoo (SONG)

Unanswered Questions

Akazoo is a global, on-demand music and audio streaming and media and AI technology company, founded in 2010, with a focus on emerging markets and a presence in 25 countries. Akazoo’s premium service provides subscribers with unlimited online and offline high-quality music streaming access to a catalog of over 45 million songs on an ad-free basis. Akazoo uses patented AI for music recommendations and offers online and offline listening. Akazoo’s free, ad-supported radio service consists of over 80,000 stations and exists as separate services and application. As consumers across the globe continue to shift their media consumption to mobile devices, Akazoo is equipped with a world-class mobile application and user experience which works seamlessly across a multitude of mobile devices and provides a high-quality user experience across a range of mobile networks from 2g to 4g LTE and soon 5g.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Terminates CEO. The company announced that it has terminated its CEO, Apostolos Zervos, and named Michael Knott as interim CEO. The Board’s decision to terminate the CEO was based on a special committee that found evidence of conduct that was inconsistent with company policies and a lack of cooperation in the investigation from Mr. Zervos.

    Financial statements should not be relied upon. Company stated that financial statements dating back to 2016 to the present should not be relied upon based on the possibility that they contain…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Unanswered Questions

Friday, May 1, 2020

Akazoo (SONG)

Unanswered Questions

Akazoo is a global, on-demand music and audio streaming and media and AI technology company, founded in 2010, with a focus on emerging markets and a presence in 25 countries. Akazoo’s premium service provides subscribers with unlimited online and offline high-quality music streaming access to a catalog of over 45 million songs on an ad-free basis. Akazoo uses patented AI for music recommendations and offers online and offline listening. Akazoo’s free, ad-supported radio service consists of over 80,000 stations and exists as separate services and application. As consumers across the globe continue to shift their media consumption to mobile devices, Akazoo is equipped with a world-class mobile application and user experience which works seamlessly across a multitude of mobile devices and provides a high-quality user experience across a range of mobile networks from 2g to 4g LTE and soon 5g.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Terminates CEO. The company announced that it has terminated its CEO, Apostolos Zervos, and named Michael Knott as interim CEO. The Board’s decision to terminate the CEO was based on a special committee that found evidence of conduct that was inconsistent with company policies and a lack of cooperation in the investigation from Mr. Zervos.

    Financial statements should not be relied upon. Company stated that financial statements dating back to 2016 to the present should not be relied upon based on the possibility that they contain…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research – Salem Media (SALM) – All Hands On Deck

Wednesday, April 29, 2020

Salem Media (SALM)

All Hands On Deck

Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 likely to be disappointing. Total company revenues is estimated to be $58.29 million and adj. EBITDA from continuing operations of $4.79 million. We believe that the company did not aggressively reduce costs as the pandemic unfolded and is positioning to benefit from US government programs to support small businesses.

    Challenging Q2. Quarterly revenues are expected to decline 22.5% to $50.1 million with cash flow (adj. EBITDA) expected to turn negative to $3.8 million. The company is expected to perform better than many of its media peers due to its relatively stable…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research salem media salm all hands on deck

Wednesday, April 29, 2020

Salem Media (SALM)

All Hands On Deck

Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 likely to be disappointing. Total company revenues is estimated to be $58.29 million and adj. EBITDA from continuing operations of $4.79 million. We believe that the company did not aggressively reduce costs as the pandemic unfolded and is positioning to benefit from US government programs to support small businesses.

    Challenging Q2. Quarterly revenues are expected to decline 22.5% to $50.1 million with cash flow (adj. EBITDA) expected to turn negative to $3.8 million. The company is expected to perform better than many of its media peers due to its relatively stable…


    Click here to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research – Tribune Publishing Company (TPCO) – Did The Virus Accelerate Its Digital Transformation?

Monday, April 27, 2020

Tribune Publishing Company (TPCO)

Did The Virus Accelerate Its Digital Transformation?

Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    First quarter preview.  We believe that Q1 will be roughly in line with original estimates, with the impact of the mitigation efforts of the CoronaVirus felt late in the quarter. We anticipate $11.3 million in adj. EBITDA, which is very near our original estimate of $12.1 million. The company took aggressive action as developments unfolded.

    Q2 is expected to be cash flow positive. While print advertising likely will take a big hit, there are favorable trends in both digital and print subscriptions and in Best Reviews. We estimate Q2 revenue to be $183.4 million and cash flow, as measured by…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research tribune publishing company tpco did the virus accelerate its digital transformation

Monday, April 27, 2020

Tribune Publishing Company (TPCO)

Did The Virus Accelerate Its Digital Transformation?

Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    First quarter preview.  We believe that Q1 will be roughly in line with original estimates, with the impact of the mitigation efforts of the CoronaVirus felt late in the quarter. We anticipate $11.3 million in adj. EBITDA, which is very near our original estimate of $12.1 million. The company took aggressive action as developments unfolded.

    Q2 is expected to be cash flow positive. While print advertising likely will take a big hit, there are favorable trends in both digital and print subscriptions and in Best Reviews. We estimate Q2 revenue to be $183.4 million and cash flow, as measured by…


    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research – Entravision Communications Corporation (EVC) – Are Investors Underestimating Its Cash In An Over Levered Industry?

Friday, April 24, 2020

Entravision Communications Corporation (EVC)

Are Investors Underestimating Its Cash In An Over Levered Industry?

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 likely would have been much stronger. We estimate that Q1 revenues will be $62.1 million and cash flow of $7.2 million. Our estimates reflect the fall off in advertising in the last few weeks of the quarter, which we believe started out very strong.

    Focus on Q2. We believe that the company implemented cost cutting measures as revenue fell, including a significant furlough of 150 employees, salary reductions firm wide, and corporate expense cuts. We believe that these actions will not be fully reflected in Q2, but will become more evident in Q3 and Q4. Q2 cash flow is expected to be modestly negative, but…


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This Company Sponsors Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research entravision communications corporation evc are investors underestimating its cash in an over levered industry

Friday, April 24, 2020

Entravision Communications Corporation (EVC)

Are Investors Underestimating Its Cash In An Over Levered Industry?

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 likely would have been much stronger. We estimate that Q1 revenues will be $62.1 million and cash flow of $7.2 million. Our estimates reflect the fall off in advertising in the last few weeks of the quarter, which we believe started out very strong.

    Focus on Q2. We believe that the company implemented cost cutting measures as revenue fell, including a significant furlough of 150 employees, salary reductions firm wide, and corporate expense cuts. We believe that these actions will not be fully reflected in Q2, but will become more evident in Q3 and Q4. Q2 cash flow is expected to be modestly negative, but…


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This Company Sponsors Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research – E.W. Scripps Company (SSP) – Quarterly Preview: Riding Through The Storm

Monday, April 20, 2020

E.W. Scripps Company (SSP)

Quarterly Preview: Riding Through The Storm

The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation�s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Lowering price target due to CoVid impact. Due to lowered expectations for 2020, we are lowering our 12 to 18 month price target from $20 to $12. Our revised target reflects our original target multiple of 11.1 times based on our revised blended 2020/2021 cash flow estimates. We believe that the target price may be conservative should the company rationalize non core broadcast assets, as we expect.

    Lower 2020, posting 2021 estimates. We estimate that total company revenue will decrease 6% in Q2, increase 14.4% in Q3, and increase 26.9% in Q4 for total year 2020 revenue of $1.79 billion. These estimates reflect core advertising decline of 36% in Q2, offset by a substantial increase in Retrans revenue. Total company 2020 cash flow is estimated at $308.7 million. In this report, we are posting 2021 revenue of $1.74 billion and…


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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research e-w- scripps company ssp quarterly preview riding through the storm

Monday, April 20, 2020

E.W. Scripps Company (SSP)

Quarterly Preview: Riding Through The Storm

The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation�s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Lowering price target due to CoVid impact. Due to lowered expectations for 2020, we are lowering our 12 to 18 month price target from $20 to $12. Our revised target reflects our original target multiple of 11.1 times based on our revised blended 2020/2021 cash flow estimates. We believe that the target price may be conservative should the company rationalize non core broadcast assets, as we expect.

    Lower 2020, posting 2021 estimates. We estimate that total company revenue will decrease 6% in Q2, increase 14.4% in Q3, and increase 26.9% in Q4 for total year 2020 revenue of $1.79 billion. These estimates reflect core advertising decline of 36% in Q2, offset by a substantial increase in Retrans revenue. Total company 2020 cash flow is estimated at $308.7 million. In this report, we are posting 2021 revenue of $1.74 billion and…


    Click here to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research – Townsquare Media (TSQ) – Quarterly Preview: Unsettling Times

Tuesday, April 14, 2020

Townsquare Media (TSQ)

Quarterly Preview: Unsettling Times

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    First quarter preview. The first quarter is not expected to be significantly impacted by the economic fallout from battling the Coronavirus. The quarter started out strong, offsetting some of the advertising weakness in the last two weeks of March. We did not adjust our first quarter estimates although we would not be surprised if there was a “miss”.

    An ugly second quarter. The biggest impact from the Coronavirus will be in the second quarter. We believe that management will guide revenues to be down roughly 39% to 44% with expenses to be down 23%. Operating cash flow, adj EBITDA, is estimated to be…


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.
 

Research townsquare media tsq quarterly preview unsettling times

Tuesday, April 14, 2020

Townsquare Media (TSQ)

Quarterly Preview: Unsettling Times

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    First quarter preview. The first quarter is not expected to be significantly impacted by the economic fallout from battling the Coronavirus. The quarter started out strong, offsetting some of the advertising weakness in the last two weeks of March. We did not adjust our first quarter estimates although we would not be surprised if there was a “miss”.

    An ugly second quarter. The biggest impact from the Coronavirus will be in the second quarter. We believe that management will guide revenues to be down roughly 39% to 44% with expenses to be down 23%. Operating cash flow, adj EBITDA, is estimated to be…


    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.