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Newsletter Archive

P.S. A media company in the wrong country at the wrong time...

This month the company I found for subscribers is located in France.

In terms of the size of companies I look at its quite large with a market value of €1,72 billion.

The company owns the most popular television channel in one of the largest European countries but is also very active in new media channels including the internet, tablets and smart phones.

In spite of this, the market views it as an old media company that is soon going the way of the dinosaurs. However, when you look at its financial statements you will see what a great business it is.

Its balance sheet is solid with no debt, and it generates a high amount of free cash flow and profits. This enables it to pay a dividend of just under 7% that can easily be maintained and has room to increase.

When I recommended the company it was trading at 7 times free cash flow, 7,7 times 2010 earnings and 5,6 times EBIT to enterprise value.

I am sure you will agree this is undervalued.

To immediately get your hands on this value investment idea (for as little as €39) click here.