Al Fried Llc Analytics Report CVC 070909 Ak Markedttgoods
The analyst initiates coverage of Cablevision Systems Corp. (CVC) with a BUY rating and $23 price target. Some key points from the summary:
- CVC has a recurring revenue model from telecom services that will see strong retention in a weak economy.
- Madison Square Garden is viewed as a hidden asset not fully reflected in CVC's stock price.
- A sum-of-the-parts valuation estimates CVC's equity is worth $22.86 per share, representing 30% upside to the target price.
Ad Industry Holding Company Report Premium Versionttgoods
This report summarizes investment opportunities in the advertising holding company industry. It finds that advertising agencies are well-positioned to benefit from an economic recovery through increased client spending. The adoption of new technologies such as mobile, internet, and interactive media are expected to drive revenue growth above consensus estimates. As the recovery strengthens, multiples are forecasted to expand, attracting more institutional investment to the industry. Emerging markets and potential for further consolidation also provide opportunities for growth.
The document discusses how dividend yields on some stocks have increased substantially due to recent market declines, making some dividend-paying stocks more attractive. However, it cautions that dividend payments may be cut for some companies as corporate profits fall. It provides examples of stocks with high dividend yields but varying levels of risk, such as utilities, consumer staples companies, and materials companies. Investors are advised to look beyond just dividend yields and consider underlying business fundamentals and risk of dividend cuts.
The document discusses how the recent stock market plunge has increased the dividend yields of some stable companies, making their shares more attractive. However, it cautions that not all high-dividend stocks are safe, as corporate profits fall and dividends may be cut. It provides examples of companies with relatively secure dividends, such as Coca-Cola and Merck, as well as those whose dividends may be at more risk, such as Bank of America, CIT Group, and newspaper companies. Investors are advised to look beyond just dividend yields and consider the underlying business fundamentals and risk of dividends being reduced.
- The water industry is a $400 billion global business that has provided market-beating returns but remains overlooked by many investors.
- The Gateway Water Economy Index has outperformed major stock indexes like the S&P 500 and Nasdaq over 5-year and 20-year periods.
- The report analyzes trends in the global and domestic water industries and introduces a Water Economy Model Portfolio of companies involved in water utilities, infrastructure, chemicals, technologies, and bottled water.
Al Fried Llc Custom Analytics Report Mdca (2711 Exempt) 062409ttgoods
1) The analyst initiates coverage of MDC Partners (MDCA) with a Buy rating and $9 price target, seeing upside of 57% from the current price.
2) Key reasons for the positive outlook include MDCA's strategic position and prospects for market share gains in 2009-2010 from increased spending on creative advertising.
3) Risks include potential declines in MDCA's customer relationship management revenue, though the analyst expects other areas of the business to offset this.
Tivo Pops On Premiere Ces Tech Talk Fidelityttgoods
1) TiVo shares surged as its Premiere set-top box gains recognition at the upcoming Consumer Electronics Show, with analysts anticipating the box will establish TiVo as the leader in integrating online and cable TV content.
2) The Premiere allows users to access Netflix, Amazon, YouTube, and social media through their TV and integrates 1 terabyte of storage for live and on-demand content from various sources with a single remote.
3) Analysts maintain buy ratings on TiVo and see the Premiere as superior to other DVRs, with a key upcoming legal decision potentially providing TiVo with $75-200 million in additional revenue.
Al Fried Llc Analytics Report CVC 070909 Ak Markedttgoods
The analyst initiates coverage of Cablevision Systems Corp. (CVC) with a BUY rating and $23 price target. Some key points from the summary:
- CVC has a recurring revenue model from telecom services that will see strong retention in a weak economy.
- Madison Square Garden is viewed as a hidden asset not fully reflected in CVC's stock price.
- A sum-of-the-parts valuation estimates CVC's equity is worth $22.86 per share, representing 30% upside to the target price.
Ad Industry Holding Company Report Premium Versionttgoods
This report summarizes investment opportunities in the advertising holding company industry. It finds that advertising agencies are well-positioned to benefit from an economic recovery through increased client spending. The adoption of new technologies such as mobile, internet, and interactive media are expected to drive revenue growth above consensus estimates. As the recovery strengthens, multiples are forecasted to expand, attracting more institutional investment to the industry. Emerging markets and potential for further consolidation also provide opportunities for growth.
The document discusses how dividend yields on some stocks have increased substantially due to recent market declines, making some dividend-paying stocks more attractive. However, it cautions that dividend payments may be cut for some companies as corporate profits fall. It provides examples of stocks with high dividend yields but varying levels of risk, such as utilities, consumer staples companies, and materials companies. Investors are advised to look beyond just dividend yields and consider underlying business fundamentals and risk of dividend cuts.
The document discusses how the recent stock market plunge has increased the dividend yields of some stable companies, making their shares more attractive. However, it cautions that not all high-dividend stocks are safe, as corporate profits fall and dividends may be cut. It provides examples of companies with relatively secure dividends, such as Coca-Cola and Merck, as well as those whose dividends may be at more risk, such as Bank of America, CIT Group, and newspaper companies. Investors are advised to look beyond just dividend yields and consider the underlying business fundamentals and risk of dividends being reduced.
- The water industry is a $400 billion global business that has provided market-beating returns but remains overlooked by many investors.
- The Gateway Water Economy Index has outperformed major stock indexes like the S&P 500 and Nasdaq over 5-year and 20-year periods.
- The report analyzes trends in the global and domestic water industries and introduces a Water Economy Model Portfolio of companies involved in water utilities, infrastructure, chemicals, technologies, and bottled water.
Al Fried Llc Custom Analytics Report Mdca (2711 Exempt) 062409ttgoods
1) The analyst initiates coverage of MDC Partners (MDCA) with a Buy rating and $9 price target, seeing upside of 57% from the current price.
2) Key reasons for the positive outlook include MDCA's strategic position and prospects for market share gains in 2009-2010 from increased spending on creative advertising.
3) Risks include potential declines in MDCA's customer relationship management revenue, though the analyst expects other areas of the business to offset this.
Tivo Pops On Premiere Ces Tech Talk Fidelityttgoods
1) TiVo shares surged as its Premiere set-top box gains recognition at the upcoming Consumer Electronics Show, with analysts anticipating the box will establish TiVo as the leader in integrating online and cable TV content.
2) The Premiere allows users to access Netflix, Amazon, YouTube, and social media through their TV and integrates 1 terabyte of storage for live and on-demand content from various sources with a single remote.
3) Analysts maintain buy ratings on TiVo and see the Premiere as superior to other DVRs, with a key upcoming legal decision potentially providing TiVo with $75-200 million in additional revenue.
Richard Tullo has over 20 years of experience in institutional research, investment analysis, portfolio management, and trading across various roles in investment banking, hedge funds, and independent research firms. He holds an MBA in finance and has published research covering various industries. His objective is to apply his skills and experience in institutional research and investments.
Six Steps Necessary For A Successful Activist Investment Campaignttgoods
The document outlines 6 steps for a successful activist investment campaign based on principles developed by the US Naval War College for insurgent campaigns. The steps are: 1) Define the critical issue to address such as revenues, earnings, governance or capital structure. 2) Gain shareholder support by building a coalition of 20-40% of shareholders and developing an alternative vision. 3) Build up the campaign by hiring an attorney, recruiting directors and management. 4) Use attrition tactics like soliciting votes and negotiating seats. 5) Transition by co-opting the board and pursuing the shareholder agenda. 6) Take over completely by pursuing a second proxy vote, removing directors and the CEO, and executing the strategic alternative.
The document is a letter from Richard Tullo to William Donaldson, Chairman of the SEC, criticizing proposed Regulation NMS. The key points made in the letter are:
1) Regulation NMS does little to modernize markets and may cost investors billions by allowing trades to occur away from the best price.
2) It expands subsidies to ECNs and forces exchanges to build infrastructure to benefit competitors.
3) The proposal to distribute proprietary market information could harm customers and should be clarified.
4) The SEC should promote market structures that encourage liquidity provision rather than faster execution times.
Richard Tullo has over 20 years of experience in financial analysis, investment research, and institutional trading. He has held positions as a research analyst covering technology companies, co-founding an independent research firm, and working as a vice president for institutional trading firms. He holds an MBA and securities licenses, and seeks to apply his skills and experience in institutional investing.
The document discusses reforms needed to the mark-to-market accounting rule (FASB 157) to help address the financial crisis. It argues that FASB 157, which requires securities to be valued based on their last sale price, even if that does not reflect intrinsic value, has led banks to post losses on mortgage securities and curtail lending. Reforming the rule to value securities based on their "call price" (the price a bank would sell them at) would result in prices closer to intrinsic value and support markets. While the Treasury plan addresses some issues, a complete overhaul of securities regulations is still needed to prevent future crises.
The document discusses relational investing and corporate governance. Relational investing involves committing to not tender shares to a hostile bidder in exchange for improved board representation and internal controls. Relational investors aim to generate excess returns by focusing on long-term investment strategies and acting more like owners of companies through board representation, proxy contests, and relationships. While relational investing can provide asymmetrical rewards and insights, it also involves high costs, retaliation risks, low liquidity, and long holding periods. Good corporate governance, including independent boards and accountability, promotes good decision making and returns for investors.
Rich Tullo Editorial on Mark To Market and FASB 157ttgoods
The document discusses reforms needed to the mark-to-market accounting rule (FASB 157) to help address the financial crisis. It argues that FASB 157, which requires securities to be valued based on their last sale price, even if that price does not reflect true value, has led banks to post losses on mortgage securities and curtail lending. Reforming the rule to value securities based on their "call price" (the price a bank would sell them at) would result in prices closer to intrinsic value and support markets. While the Treasury plan addresses some issues, a complete overhaul of securities regulations is still needed to prevent future crises.
Journal Communications, Inc. is a media company that operates newspapers, television stations, radio stations, and websites across 12 states. The company generates most of its revenue from advertising sales. The analyst initiates coverage of Journal Communications with a Neutral rating and $8 price target due to concerns about weak advertising spending in 2008 and the company's exposure to struggling real estate markets. However, the company is transforming its business model and expanding its faster-growing internet and broadcast segments. The analyst expects the company's performance to improve in late 2008 and 2009 as the economy recovers and advertising spending increases.
A financial model is a quantitative or accounting logic chain designed to forecast future outcomes based on data inputs. Models allow for better forecasting than guessing by incorporating assumptions, economic data, and other variables. Common types of financial models include econometric models, industry models, and earnings models. An example regression model correlates housing starts to population estimates to forecast new home construction. Good analysts spend most of their time developing and interpreting financial models.
Richard Tullo has over 20 years of experience in institutional research, investment analysis, portfolio management, and trading across various roles in investment banking, hedge funds, and independent research firms. He holds an MBA in finance and has published research covering various industries. His objective is to apply his skills and experience in institutional research and investments.
Six Steps Necessary For A Successful Activist Investment Campaignttgoods
The document outlines 6 steps for a successful activist investment campaign based on principles developed by the US Naval War College for insurgent campaigns. The steps are: 1) Define the critical issue to address such as revenues, earnings, governance or capital structure. 2) Gain shareholder support by building a coalition of 20-40% of shareholders and developing an alternative vision. 3) Build up the campaign by hiring an attorney, recruiting directors and management. 4) Use attrition tactics like soliciting votes and negotiating seats. 5) Transition by co-opting the board and pursuing the shareholder agenda. 6) Take over completely by pursuing a second proxy vote, removing directors and the CEO, and executing the strategic alternative.
The document is a letter from Richard Tullo to William Donaldson, Chairman of the SEC, criticizing proposed Regulation NMS. The key points made in the letter are:
1) Regulation NMS does little to modernize markets and may cost investors billions by allowing trades to occur away from the best price.
2) It expands subsidies to ECNs and forces exchanges to build infrastructure to benefit competitors.
3) The proposal to distribute proprietary market information could harm customers and should be clarified.
4) The SEC should promote market structures that encourage liquidity provision rather than faster execution times.
Richard Tullo has over 20 years of experience in financial analysis, investment research, and institutional trading. He has held positions as a research analyst covering technology companies, co-founding an independent research firm, and working as a vice president for institutional trading firms. He holds an MBA and securities licenses, and seeks to apply his skills and experience in institutional investing.
The document discusses reforms needed to the mark-to-market accounting rule (FASB 157) to help address the financial crisis. It argues that FASB 157, which requires securities to be valued based on their last sale price, even if that does not reflect intrinsic value, has led banks to post losses on mortgage securities and curtail lending. Reforming the rule to value securities based on their "call price" (the price a bank would sell them at) would result in prices closer to intrinsic value and support markets. While the Treasury plan addresses some issues, a complete overhaul of securities regulations is still needed to prevent future crises.
The document discusses relational investing and corporate governance. Relational investing involves committing to not tender shares to a hostile bidder in exchange for improved board representation and internal controls. Relational investors aim to generate excess returns by focusing on long-term investment strategies and acting more like owners of companies through board representation, proxy contests, and relationships. While relational investing can provide asymmetrical rewards and insights, it also involves high costs, retaliation risks, low liquidity, and long holding periods. Good corporate governance, including independent boards and accountability, promotes good decision making and returns for investors.
Rich Tullo Editorial on Mark To Market and FASB 157ttgoods
The document discusses reforms needed to the mark-to-market accounting rule (FASB 157) to help address the financial crisis. It argues that FASB 157, which requires securities to be valued based on their last sale price, even if that price does not reflect true value, has led banks to post losses on mortgage securities and curtail lending. Reforming the rule to value securities based on their "call price" (the price a bank would sell them at) would result in prices closer to intrinsic value and support markets. While the Treasury plan addresses some issues, a complete overhaul of securities regulations is still needed to prevent future crises.
Journal Communications, Inc. is a media company that operates newspapers, television stations, radio stations, and websites across 12 states. The company generates most of its revenue from advertising sales. The analyst initiates coverage of Journal Communications with a Neutral rating and $8 price target due to concerns about weak advertising spending in 2008 and the company's exposure to struggling real estate markets. However, the company is transforming its business model and expanding its faster-growing internet and broadcast segments. The analyst expects the company's performance to improve in late 2008 and 2009 as the economy recovers and advertising spending increases.
A financial model is a quantitative or accounting logic chain designed to forecast future outcomes based on data inputs. Models allow for better forecasting than guessing by incorporating assumptions, economic data, and other variables. Common types of financial models include econometric models, industry models, and earnings models. An example regression model correlates housing starts to population estimates to forecast new home construction. Good analysts spend most of their time developing and interpreting financial models.