Beasley Media Group: Radio’s ‘GameStop’?

By
Adam Jacobson
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0

Until Wednesday’s Opening Bell for Nasdaq markets, Beasley Media Group was trading in the $4-$5 range, under a narrative that the company founded by the late George Beasley and run today by his daughter, Caroline Beasley, was under severe financial strain.


As the Closing Bell approached, it became very clear that “meme stock” players on social media — the very merrymakers that gave GameStop its historically inexplicable stock surge from $4.71 to $81.25 in January 2021 — were driving “BBGI” to unfathomable heights.

With little rhyme or reason, unless one eyed social media and taming-focused instant messaging and VoIP social platform Discord, “BBGI” shot up by a eye-popping 436% in the minutes before 3pm Eastern, having rocketed to $26.37 at 2:33pm Eastern from Tuesday’s closing price of $4.05.

By 3:15pm Eastern, “BBGI” shares were down to $19.450 from the day’s high. Still, that represents a 388% increase in just one day’s trading. Volume was 40.2 million shares; average trading volume for Beasley shares stands at just 33,880 shares.

The reasons were first shared by “Coach Nick Money,” a financial opinion spinster found on X (formerly Twitter).

Nick Money notes, “My content is not stock or financial advice. It is my opinion. Always do your own due diligence.”

That didn’t stop followers from sweeping up stock for the owner of such radio stations as WBZ-FM “The Sports Hub” in Boston, WRIF and WCSX in Detroit, WMMR and WMGK in Philadelphia, and WQYK and WRBQ “Q105” in Tampa.

Money offers two monthly “courses” on “wealth building” and how to “spot potential parabolic runners in real time,” at $150 and $79.99, respectively.

Benjamin Hernandez, a self-described “experienced stock trader specializing in market analysis, risk management, and high-frequency trading,” in the 11am hour offered his endorsement of “BBGI,” noting, “This is a high-risk, high-reward setup. The reduced share count makes it sensitive to volume. We are seeing early signs of a rotation into micro-cap media stocks, and BBGI is the prime candidate to lead the sector.”

Jesse Whiteman, a “discipline-led trader in stocks,” had this to say about Beasley Media Group:

The M&A lottery ticket trading at $4.42 … Radio consolidation wave is here and they own 112 stations in 87 markets with almost zero debt.

That’s a false statement, as Beasley Media Group’s long-term debt is in the hundreds of millions of dollars.

 

 

Among the forward-looking statements in Beasley’s Q3 10-Q form filed with the Securities & Exchange Commission is one stating that “the company’s substantial debt levels and the potential effect of restrictive debt covenants on the company’s operational flexibility and ability to pay dividends” remain a concern to investors.

Ms. Beasley nor a company spokesperson immediately responded to RBR+TVBR‘s request for comment.

One month ago, Ms. Beasley shared that as Beasley Media Group moves into the fourth quarter, it remains “focused on disciplined execution, strengthening our balance sheet through planned asset sales, and advancing our strategy to deliver sustainable shareholder value.” Regarding what to expect in Q4, Caroline Beasley shared on the call that pacings reflect a high-single-digit decline, ex-political, and are off 20% when including political advertising revenue. She also labeled the rate of revenue decline “unacceptable” as strengthening accountability and accelerating digital revenue opportunities becomes an even bigger priority for the company.

At the Closing Bell, a 312.1% gain for “BBGI” was seen, with trading officially ending Wednesday’s session at $16.69 — a $12.64 rise.

In immediate after-hours trading, the sell-offs began, pushing “BBGI” down by nearly 32% as of 4:23pm Eastern, to $11.46, as more highly volatile activity continued for the company’s shares.

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