Given the growing number of radio group bankruptcies, stations selling for low multiples, and pundits declaring that only fools would buy radio stations, we were recently inspired to write a post called Maybe It’s Time to Buy. In it, we quoted the advice of sages:
John D. Rockefeller said the best time to buy stocks is when there is "blood in the streets." Warren Buffet says be greedy when others are afraid. George Soros made most of his billions betting against the pundits.
If you haven’t noticed, there’s been a bit of a rally with radio stocks. As the table to the left attests, most radio stocks have dramatically risen since our post, some over ten times the rise of the Dow.(Click to enlarge.)
We last blogged about radio stocks in July 2008. In a post called What Wall Street Thinks of Radio, we noted the plunging prices of radio stocks. What a difference a year makes.
Admittedly, some of these stocks have been reduced to penny stocks, so a swing of a buck translates into a big percentage gain. Even with these recent gains, stock prices are well below their frothy highs. And volume is light.
But 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?