• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

LAYOFFS ONGOING AT BEASLEY MEDIA GROUP

PTBoardOp94 said:
The odds of Audacy executing a reverse stock split in early 2023 are very high. Check back here in late January.

By the way, you don't do that to attract shareholders. You do that because the NYSE and NASDAQ rules don't allow for stocks trading under a dollar - so you're doing it for continued access to the public markets.
Click to expand...
Generally you do a reverse stock split to:
  • Boost the company's image if the stock price has dropped dramatically: If the stock is trading in the single digits, it is likely to be viewed as a risky investment, particularly if the price is near a dollar or considered a penny stock by investors.
  • Draw more attention from analysts and influential investors: Higher-priced stocks attract more attention from market analysts, and a favorable view from analysts is excellent marketing for the company. They are also more likely to pop up on the radars of big institutional investors and mutual funds, many of which have policies against taking positions in a stock whose price is below a minimum value.
  • The problem with the last one is; institutional/banks, hedge, private equity, all have been taking a pass on investing in pure-play traditional media since the 2008 recession. It's even tougher now, considering stocks and investment analysis's all want some assurance of growth. Radio, in particular, can't offer that assurance.
 
Kelly A said:
It's even tougher now, considering stocks and investment analysis's all want some assurance of growth. Radio, in particular, can't offer that assurance.
Click to expand...

Which is why Audacy changed its name from Entercom, seeking to present itself as a modern technology company rather than traditional radio company. Obviously investors didn't see it that way.
 
Kelly A said:
Generally you do a reverse stock split to:
blah...blah...blah
Click to expand...
No. Just for you, I looked at all of the stocks which did a reverse split in September, 2022. All of them were in violation of the $1 rule. There were only four, all of them tiny companies I'd never heard of.

There are exceptions. General Electric is the one that comes to mind. They did a 1:10 reverse split a couple of years ago because they didn't want to be thought of as a $6 stock.
 
PTBoardOp94 said:
There are exceptions. General Electric is the one that comes to mind. They did a 1:10 reverse split a couple of years ago because they didn't want to be thought of as a $6 stock.
Click to expand...
But Audacy, or any media stock, doesn't have a diversified portfolio like GE. Apples and appliances comparison.
 
I didn't imply that they did.

Also, GE doesn't make appliances any more. They sold their appliances division to Haier.
 
GE spun off their appliance line long ago.... 2016 to be exact

Even now they are going to break up what is left into GE Healthcare, GE Energy, and GE Aviation
 
PTBoardOp94 said:
I didn't imply that they did.

Also, GE doesn't make appliances any more. They sold their appliances division to Haier.
Click to expand...
You know what I meant. Pretty sure they had the appliance division when they did a stock split. How about this then: Apples to jet engines?
What about Apples to medical equipment? Is that better?
 
Kelly A said:
You know what I meant. Pretty sure they had the appliance division when they did a stock split. How about this then: Apples to jet engines?
What about Apples to medical equipment? Is that better?
Click to expand...
You have left far fewer nits to pick...
 
bigdonho said:
Westwood One did a reverse stock split when it dropped below a buck to prevent delisting. It didn't help them much.
Click to expand...

Cumulus did an 8:1 reverse split a few years ago. About two weeks later, it was back into penny stock territory.

I'd have to think anyone in the industry looking at a reverse split will think about those cases. If one does happen, it would likely be out of desperation.
 
Kent said:
Cumulus did an 8:1 reverse split a few years ago. About two weeks later, it was back into penny stock territory.

I'd have to think anyone in the industry looking at a reverse split will think about those cases. If one does happen, it would likely be out of desperation.
Click to expand...
Exactly. As mentioned doing a stock split, either way, would be an expensive and useless exercise. And why would it be? Because these are media stocks. There's likely no opportunity for growth.
 
Kelly A said:
Exactly. As mentioned doing a stock split, either way, would be an expensive and useless exercise.
Click to expand...
If they manage to avoid bankruptcy, it won't be pointless. But they probably will end up in bankruptcy, their reverse split will just postpone the inevitable.
 
PTBoardOp94 said:
If they manage to avoid bankruptcy, it won't be pointless. But they probably will end up in bankruptcy, their reverse split will just postpone the inevitable.
Click to expand...

You're talking about two different things. Reverse split is something they do for NYSE. They can stay under a dollar and just get listed on a different exchange. I think Sirius did that when they were a penny stock. Bankruptcy is another matter, and it has more to do with their relationship with their creditors.
 
I'm aware. The "inevitable" is a de-listing, because bankrupt companies also cannot be listed on the NYSE.

But you're right, I should have been more clear, since I've clearly had trouble getting Kelly A to understand my point.
 
PTBoardOp94 said:
If they manage to avoid bankruptcy, it won't be pointless. But they probably will end up in bankruptcy, their reverse split will just postpone the inevitable.
Click to expand...
Just because they're doing Q4 cuts, they're on the road to bankruptcy? That's right up there with claiming a station group is at deaths door because of 6+ ratings. Absolutely no valid basis for that assumption.
 
Wait a sec. This calls for a question. Which of the top ten largest radio/broadcast corp/companies have never filed bankruptcy?
 
Tibbs4 said:
Wait a sec. This calls for a question. Which of the top ten largest radio/broadcast corp/companies have never filed bankruptcy?
Click to expand...
Univision for one...
 
Tibbs4 said:
Wait a sec. This calls for a question. Which of the top ten largest radio/broadcast corp/companies have never filed bankruptcy?
Click to expand...
Top that haven't?
Hubbard
Audacy
Beasley
EMF
(as David mentioned) Univision
Accuradio
Salem Communications
Urban One
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom