RadioInsights doesn't claim any great investment expertise. We do have pretty sensitive BS meters, however. Last year during the depths of the recession we questioned the rampant fatalism within the broadcast community.
We believed self-serving new-media pundits were fueling the radio is dead meme, and Wall Street was buying it. Read our comments here, here, and here.
As we noted then:
Don't you find it interesting that now that Wall Street has essentially stopped covering radio stocks and the new-media pundits have declared radio toast, that investors out there have started accumulating radio stocks? Doesn't it make you wonder?
If you read our comments and believed as we did that radio was not fatally wounded, you might have taken our advice to invest in radio stocks back in September. You're probably feeling pretty smug right now.
Since then, the stocks we highlighted have done rather well. Cumulus and Entercom have more than doubled, Emmis is up nearly as much, and Entravision, Saga, and Salem have risen nicely. (See the accompanying graphs.)
If you had invested equal dollar amounts in the groups we highlighted, you would have made a profit of 77%. Had you invested in the S&P500 over that same period, you would have made 10%.
The recession seems behind us. Revenues have begun growing again. Next time you read the latest dire predictions for radio, remember that those same pundits were declaring radio dead and buried back in September. Think about how wrong they were.
Comments