That’s what one analyst is saying. Seeking Alpha’s Garland Pollard notes the disappointing Q1 financial results posted by the radio giant and its shrinking stock price, but sees strength as well.
Pollard is thinking going long with the stock.
He noted that the financial results for Q1 need to be improved upon, and suggests that investor Crestview may need to strongly push for a better sales effort from the group.
Pollard also questioned a few specifics, ranging from programming decisions to website design issues.
However, he said that there are undeniable strong points to Cumulus.
It has a large number of excellent radio stations in great markets.
It has a prime asset in Westwood One.
Unlike newspapers, which suffered readership losses swiftly one consumer attention shifted to online, radio has retained a very large audience.
He said that despite the company’s debt load, it is solvent. Radio is still a strong medium, and despite encroachment for digital audio, local content is still important – citing weather and traffic specifically.
With Cumulus stock at bargain prices, Pollard suggested it is worth taking a chance on a long term bet that the value will move back upward over time.
RBR+TVBR observation: After sitting through a number of quarterly conference calls it is clear that the radio business in general took a pounding, not Cumulus specifically.
Companies with a lot of assets in the northeast took a hit due to the unusually harsh winter.
Companies with a strong presence in New York were also vulnerable to bad comps through no fault of their own.
RBR+TVBR wishes all radio groups success as the industry digs out from the snows of 2015 and begins to rebuild value going forward.
