BET Holdings stocks reach 52-week high

Shares in BET Holdings hit a 52-week trading high Thursday and could rise further in the near term thanks to a bullish chart pattern and several ambitious expansion moves.

BET owns Black Entertainment Television, a cable network that Nielsen estimates reaches upward of 37 million cable households or 60% of all U.S. cable households and 90% of black cable households.

BET shares are trading around 25 times 1994 profit forecasts of 80 cents a share — not cheap by any means, but below peers such as Gaylord Ent. (at $ 29. 88, 45 times estimated ’94 net).

On Thursday, BET stock rose as high as $ 20.25 per share — a level it hadn’t even approached since mid-October — before closing down 13 cents at $ 20.

The stock’s successful emergence from its rut in the upper teens sets the stage for a run as far as $ 22 or $ 23 a share in the next six months, barring negative fundamental developments, according to Kemper Securities chief market analyst Gregory Nie.

BET, which also operates BET Action Pay-Per-View and publishes two magazines, “Young Sisters & Brothers” and “Emerge,” declined to comment on stock or earnings forecasts.

Last month, BET reported net profits for the first 1994 quarter ended Oct. 31 rose about 31% to 18 cents a share as revenues jumped 37% to $ 23.66 million.

In a recent report, Chapman Co. analyst H. Bernard Dorshow, who rates BET “modestly attractive,” voiced concern that the money-losing magazine business will continue to drag on the bottom line.

BET recently announced a slew of new projects, including one with Home Shopping Network to produce a video retailing program with the goal of a full-time shopping service.

It also established separate joint ventures with Encore and Blockbuster Entertainment Corp. to fund the production and distribution of black-oriented films.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety