Q: Are there niche radio station companies out there worth pursuing? CJR.b:CA is an apparent "turkey" in Canada but does SGA:US merit some further research? Are there others?
5i Research Answer:
RAY.A may be of interest as a 'music' company which also bought several radio stations in 2018. The stock is hardly exciting but offers a nice dividend yield (4.9%) with some growth. CJR.B has indeed been a turkey and is hard to endorse. SGA is interesting, and cheap, but is very small and thus higher risk. But insiders own a lot (three individuals own 49%), it has a strong balance sheet (net cash $42M) and the dividend has grown nicely. We found about nine other public companies in the business, but all are even smaller and not of any interest (BBGI, for example, is only $27M).