Stocks for the Political Season: Emerging Market Watch Part 1

Steve Kanaval  |

Salem Media Group, Inc. (SALM) operates as a multi-media company in the United States. It operates in three segments: Broadcast, Digital Media, and Publishing. The company owns and operates radio networks, which produce and distribute talk, news, and music programming to radio stations in the United States, as well as sells commercial airtime to national advertisers and independent radio station affiliates.

Shares in Salem who have a current valuation of $189M (they also pay a dividend of .065) have been up and down this year testing yearly lows in February trading lower by 30% to $3.70. Today, as we finalize who is running for the Republicans and Democrats shares are 50% higher for the year at $7.

It's hard to fathom why shares would be lower for the year at all during this election year spend, but it still remains parmount that the company executes and it comes through in earnings and margins.

If you are looking for a barometer to the advertising spend you need to look no further than here, but the hard question is - do I buy this up 40% for the year? It is hard for investors to buy into strength with a zero position, so that means you really need to dissect the numbers, management, guidance and expectations. This starts by talking to the company...we are on this for you.

Below is a description of what they do. The investing question is about "fair current pricing" and valuation, and is $7 too much? I don't know, but my guess is that these shares will have volatility through the entire election as investors realize what they do.

The company provides Christian and conservative-themed content, audio and video streaming, and other resources digitally through Christian content Websites, such as OnePlace.com, Christianity.com, Crosswalk.com, GodVine.com, Jesus.org, and BibleStudyTools.com; and conservative opinion Websites, such as Townhall.com, HotAir.com, Twitchy.com, HumanEvents.com, and RedState.com.

They also issue digital newsletters, including Eagle Financial Publications that provide market analysis and investment advice for individual subscribers; and operates Church product Websites, such as WorshipHouseMedia.com, SermonSpice.com, and ChurchStaffing.com that offer downloads and service platforms; and e-commerce sites, including Salem Consumer Products, an e-commerce business that sells books, DVD’s, and editorial content, as well as Eagle Wellness and Gene Smart Wellness an e-commerce sites that offer health advice and nutritional products.

In addition, it publishes conservative books, such as Ann Coulter, Newt Gingrich, David Limbaugh, Ed Klein, Mark Steyn, and Dinesh D'Souza; and produces and distributes Christian and conservative opinion print magazines, including Homecoming The Magazine, YouthWorker Journal, Singing News, FaithTalk Magazine, and Preaching Magazine, as well as Xulon Press, a print-on-demand self-publishing service for Christian authors. The company was formerly known as Salem Communications Corporation and changed its name to Salem Media Group, Inc. in February 2015. Salem Media Group, Inc. was founded in 1986 and is headquartered in Camarillo, California.

If you want more on this (or any) company send an email to neal@equities.com

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.


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Companies

Symbol Name Price Change % Volume
SALM Salem Media Group Inc. 1.35 0.00 0.00 37,087 Trade

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