Collins Stewart Downgrades Liberty Entertainment (LMDIA) to Hold; Prefer to Own DTV
LMDIA Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Collins Stewart downgrades Liberty Entertainment (Nasdaq: LMDIA) from Buy to Hold.
Collins analyst says, "With LMDIA's discount to NAV falling to approximately 11%, we see just moderate upside to holding LMDIA. Moreover, with the deal expected to close towards the end of 4Q09, we expect the bulk of any discount narrowing to occur in 4Q09, but not sooner. And given the volatility of
today's market, we believe its time to cash in on the LMDIA appreciation. Recall that the LMDIA discount was as wide as 60% in December 2008."
"Although LMDIA could benefit from further DIRECTV (NYSE: DTV) appreciation, we would prefer to own the underlying DTV stock as the LMDIA discount is no onger compelling. We expect DTV to continue to post impressive results, including 279k added subscribers in 1Q09. While some of the arbitrage pressure may continue, we expect it to decline as the LMDIA discount declines."
Liberty Media Corporation is a holding company, which, through its subsidiaries is engaged in the video and on-line commerce, media, communications and entertainment industries.
Collins analyst says, "With LMDIA's discount to NAV falling to approximately 11%, we see just moderate upside to holding LMDIA. Moreover, with the deal expected to close towards the end of 4Q09, we expect the bulk of any discount narrowing to occur in 4Q09, but not sooner. And given the volatility of
today's market, we believe its time to cash in on the LMDIA appreciation. Recall that the LMDIA discount was as wide as 60% in December 2008."
"Although LMDIA could benefit from further DIRECTV (NYSE: DTV) appreciation, we would prefer to own the underlying DTV stock as the LMDIA discount is no onger compelling. We expect DTV to continue to post impressive results, including 279k added subscribers in 1Q09. While some of the arbitrage pressure may continue, we expect it to decline as the LMDIA discount declines."
Liberty Media Corporation is a holding company, which, through its subsidiaries is engaged in the video and on-line commerce, media, communications and entertainment industries.
You May Also Be Interested In
- UPDATE: UBS Downgrades Wisconsin Energy (WEC) to Neutral; Taking Some Off The Table
- Barclays Lowers PT and Estimates on Royal Bank of Canada (RY); Coming Off The Bandwagon
- Goldman Sachs Boosts Numbers on PVH Corp (PVH) After Q1 Beat
Create E-mail Alert Related Categories
DowngradesRelated Entities
Collins StewartSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
