Tweet

 Email

Released on Monday, November 7, 2011, 8:00 AM ET

Pittsburgh, PA (SpeculatingStocks) - Here is a small capitalization firm that might honestly surprise you in your pursuit of stocks. Sinclair Broadcasting Group Inc. (NASDAQ:SBGI) holds approximately 24% of the United States televised family viewers, and has affiliates in the giant broadcasting stations Fox and NBC.

Sinclair just recently released their quarterly earnings report declaring a 22% gain on its diluted per share earnings, which are now coming in at $0.24 per share, the company had reduced the EPS per share to that number by offering a 12 ¢ per share dividend. The firm also has a price that is 9.43 times earnings trading currently at $9.97 per share (4:00 PM EDT, November 4th, 2011).

Over the past several intraday trading periods, the stock has climbed continuously, and a quick Elliot wave analysis over a month period of time, would reveal that the stock is expected to trend up again, as in the short-term it trended down slightly, showing the end of the 3 wave cycle and the beginning of the new 5 wave cycle that is part of the Elliot wave theory.

Looking at Sinclair’s financials it has a current ratio of 1.23 and a total debt to asset ratio of 0.76, rendering the company financially stable and able to cover its debts with its assets or otherwise. Every year the cash flow of Sinclair has been positive operating cash flow of $176 million, which means that the company shall be able to pays its current debts when they are called.

With new devices coming down the line, such as the more available Apple products, new small laptops, mobile devices, broadcasting stations will have to evolve, but with it so will their ability to reach the masses and gain profits. This sector of broadcast communications could be a sector of the future, one to observe for the greater amount of time—Sinclair alone could be a nice gain at the end of the year with another quarterly earnings report.

Find more stocks on the SpeculatingStocks homepage.

Comments: