R
Rolavine
Guest
Sinclair Broadcasting takes a beating
By David Lieberman and James Cox, USA TODAY
Sinclair Broadcasting (SBGI) continues to feel heat from Wall Street as the
company's 62 television stations prepare this week to air Stolen Honor: Wounds
That Never Heal, a documentary critical of Democratic presidential nominee John
Kerry's Vietnam-era activities.
Shares closed Monday at $6.49, down 55 cents since Friday â and down 12%
since Oct. 11, the first day of trading after the Los Angeles Times disclosed
Sinclair's plans.
Lehman Bros. cut its 12-month price target to $9 from $10 as analyst William
Meyers noted in a report that airing the documentary "has no upside and only
multi-dimensional downside" for the company â for example by alienating
advertisers and regulators.
But that's not Sinclair's only business problem â nor its only experience
with controversy.
Sinclair's financial woes were highlighted Monday in J.P. Morgan's decision to
initiate coverage with an "underweight" rating that indicates it is expected to
under-perform its peer group.
"In our conversation with management, we detected substantial frustration with
the company's stock price," analyst Barton Crockett says. Sinclair's stock is
down 56.7% year-to-date compared with the S&P 500's rise of 0.2% for the year.
He adds that Sinclair may consider trying to go private but would be hindered
by its debt.
Among the decisions that raised the ire of many investors and public-interest
advocates:
⢠Since 2002 Sinclair has produced and distributed costly news and mostly
conservative-opinion segments, called News Central, about national and
international affairs for stations' local newscasts. While Sinclair describes
the package as a cheaper way to offer news, analysts question why its small
stations need to air news at all.
⢠Also related to news, in at least 11 regulatory filings last year and this
year, Sinclair blamed the Iraq war for $2.2 million in lost ad revenue.
Sinclair's filings with the Securities and Exchange Commission say the Iraq
conflict prompted advertisers to cancel or forced stations to pre-empt ads for
news.
⢠Until last summer, Sinclair has vigorously opposed the transition to
digital television. The company said it wanted a technical standard that would
make it easier for homes to receive over-the-air signals on indoor antennas.
But critics said Sinclair put its interests ahead of the country's, and angered
regulators, by trying to put off the expense of converting to digital TV.
⢠Sinclair has an ongoing battle with Jesse Jackson's Rainbow/PUSH Coalition.
The group has asked the Federal Communications Commission to rescind some
Sinclair station licenses and keep it from buying more. The group says Sinclair
used a minority-run company it controls to improperly create duopolies â
ownership of two TV stations in a market â in cities such as Oklahoma City
and Dayton, Ohio.
In a seeming counterattack, Sinclair has asked a Georgia court for permission
to review videotapes submitted in a lawsuit against Rainbow/PUSH by a former
employee.
⢠Investors also challenged Sinclair's decision in 2002 to invest $20 million
in Summa Holdings, an auto dealership controlled by CEO David Smith. This year
Sinclair said it would make no additional investments in Summa.
Sinclair didn't return calls.
Sounds like Kerry can finish them off easy after he is elected!
This is why fanatics shouldn't be allowed to run corporations or countries for
that matter!
In either case it is the investors that get screwed!
Rocky
By David Lieberman and James Cox, USA TODAY
Sinclair Broadcasting (SBGI) continues to feel heat from Wall Street as the
company's 62 television stations prepare this week to air Stolen Honor: Wounds
That Never Heal, a documentary critical of Democratic presidential nominee John
Kerry's Vietnam-era activities.
Shares closed Monday at $6.49, down 55 cents since Friday â and down 12%
since Oct. 11, the first day of trading after the Los Angeles Times disclosed
Sinclair's plans.
Lehman Bros. cut its 12-month price target to $9 from $10 as analyst William
Meyers noted in a report that airing the documentary "has no upside and only
multi-dimensional downside" for the company â for example by alienating
advertisers and regulators.
But that's not Sinclair's only business problem â nor its only experience
with controversy.
Sinclair's financial woes were highlighted Monday in J.P. Morgan's decision to
initiate coverage with an "underweight" rating that indicates it is expected to
under-perform its peer group.
"In our conversation with management, we detected substantial frustration with
the company's stock price," analyst Barton Crockett says. Sinclair's stock is
down 56.7% year-to-date compared with the S&P 500's rise of 0.2% for the year.
He adds that Sinclair may consider trying to go private but would be hindered
by its debt.
Among the decisions that raised the ire of many investors and public-interest
advocates:
⢠Since 2002 Sinclair has produced and distributed costly news and mostly
conservative-opinion segments, called News Central, about national and
international affairs for stations' local newscasts. While Sinclair describes
the package as a cheaper way to offer news, analysts question why its small
stations need to air news at all.
⢠Also related to news, in at least 11 regulatory filings last year and this
year, Sinclair blamed the Iraq war for $2.2 million in lost ad revenue.
Sinclair's filings with the Securities and Exchange Commission say the Iraq
conflict prompted advertisers to cancel or forced stations to pre-empt ads for
news.
⢠Until last summer, Sinclair has vigorously opposed the transition to
digital television. The company said it wanted a technical standard that would
make it easier for homes to receive over-the-air signals on indoor antennas.
But critics said Sinclair put its interests ahead of the country's, and angered
regulators, by trying to put off the expense of converting to digital TV.
⢠Sinclair has an ongoing battle with Jesse Jackson's Rainbow/PUSH Coalition.
The group has asked the Federal Communications Commission to rescind some
Sinclair station licenses and keep it from buying more. The group says Sinclair
used a minority-run company it controls to improperly create duopolies â
ownership of two TV stations in a market â in cities such as Oklahoma City
and Dayton, Ohio.
In a seeming counterattack, Sinclair has asked a Georgia court for permission
to review videotapes submitted in a lawsuit against Rainbow/PUSH by a former
employee.
⢠Investors also challenged Sinclair's decision in 2002 to invest $20 million
in Summa Holdings, an auto dealership controlled by CEO David Smith. This year
Sinclair said it would make no additional investments in Summa.
Sinclair didn't return calls.
Sounds like Kerry can finish them off easy after he is elected!
This is why fanatics shouldn't be allowed to run corporations or countries for
that matter!
In either case it is the investors that get screwed!
Rocky
an.2004.10.21.03.15.36.978957@example.net...