×
You will be redirected back to your article in seconds

CapCities/ABC earns ‘buy’ from Bear Stearns

Bear Stearns initiated coverage of Capital Cities/ABC Wednesday with a buy recommendation, citing the company’s investments in cable programmers and European ventures as well as improving fundamentals. CapCities/ABC shares closed $ 3.75 higher at $ 718.75.

“They are very forward-looking (with) investments in growth markets overseas, ” said analyst Matthew Harrigan, who follows ABC for Bear Stearns. “There are more (opportunities) there than in the relatively mature North American market.”

Harrigan said the broadcaster’s stakes in Lifetime, Arts & Entertainment and its overseas investments — including a 21% stake in Scandinavian Broadcast System — represent between $ 85 and $ 100 per share in equity value that is not currently reflected.

Diversification

He also attributed CapCities/ABC’s bullish prospects to an improving advertising market, successful new programming and cost-cutting efforts on sports contracts in addition to new projects involving CD-ROM and videogames.

Harrigan expects CapCities/ABC to earn $ 36.49 per share this year and $ 42. 39 in 1995 on a pre-split basis. The company said last week, pending shareholder approval, it will split its stock 10-for-one following a May annual meeting. It earned $ 27.79 per share after a charge of 74 cents per share in 1993.

“If you look at it on a cash earnings basis, it’s a pretty good story,” he said. “With fin-syn going away in two years, CapCities will remain a first-tier media player through internal development without needing a merger with a studio or a King World.”

Fit for a King World?

Constant speculation has paired CapCities/ABC with “The Oprah Winfrey Show” distributor King World Prods.

Separately, King World said Wednesday it restarted its program to buy back up to about 1.235 million shares of common stock left under the repo plan announced in December 1992. King World had previously approved the repurchase of up to 2 million shares in open market or private dealings. In its fiscal year ended Aug. 31, 1993, King World bought back 765,200 shares on the open market. King World closed up 38 cents at $ 39.88 per share.

More Biz

  • China's Alibaba to Take Majority Control

    Alibaba to Take Majority Control of Alibaba Pictures

    Chinese e-commerce giant Alibaba is to take majority control of its films unit Alibaba Pictures. The $160 (HK$1.25 billion) deal was announced on Monday. The companies said that Alibaba will increase its stake in Hong Kong- and Singapore-listed Alibaba Pictures, through a share subscription. It will lift the parent company’s stake from 49% to 51%, [...]

  • Guy Moot

    Is Sony/ATV’s Guy Moot Headed for Top Job at Warner/Chappell?

    Ever since Jon Platt announced in September that he will be stepping down from his post at the helm of Warner/Chappell Publishing to take the top job at Sony/ATV when Martin Bandier’s contract is up at the end of March, speculation has been rife about who will take over for him. One name has been [...]

  • The King Eric Clapton A Life

    Rashida Jones, Lili Zanuck Talk Grammy Nominations and the Music-Documentary Gold Rush

    Nothing takes you back to time and a place like the music of a particular era. That’s one big reason why music documentaries are flourishing at a time of enormous demand for high-end docu productions. This year’s five Grammy Award nominees for best music film reflect the appetite for stories about renowned and beloved musical figures, [...]

  • il bussetto best business card holder

    Office-Appropriate Gifting: The Best Gifts For Your Colleagues and Bosses

    You can do better than a handshake or bottle of wine to wish your boss a Happy Holiday this season. Here are 10 gifts that show your appreciation for your colleagues or manager, while also helping you stand out from the card and cookie-wielding pack. 1. Personalized Beer Growler Whether they are using it for [...]

  • viceroy-los-cabos-review

    Winter Hotel Guide: Where The Stars Stay in Los Angeles, New York and Beyond

    Whether for a business meeting, a private event, or an intimate celebration for family and friends, these are the hotels that Hollywood keeps on its list. From storied properties that are rich in film and fashion lore, to new players on the hospitality scene, here’s where to book your next stay. 1. Hotel Shangri-La (Santa [...]

  • best tech gifts ipad apple

    Retail Analysts Reveal Top Tech Gifts of 2018

    It’s shaping up to be a busy holiday season for tech and electronics companies, as gaming consoles, streaming devices and televisions top the list of most anticipated gifts, according to retail analysts. New data from Adobe Analytics forecasts that the holiday shopping season (the period from November 1 to December 31) will see more than [...]

  • best harry potter gifts art

    Harry Potter 20th Anniversary: The Best Gifts For Harry Potter Fans

    2018 marked a big milestone for “Harry Potter,” as the franchise celebrated the 20th anniversary of “Harry Potter and the Sorcerer’s Stone” release in the U.S. Since that first book was summoned onto store shelves, the Wizarding World has become a phenomenon not just in America, but around the world, spawning a successful film franchise, [...]

More From Our Brands

Access exclusive content