Our World Has Changed

“Crisis does not create character; it reveals it.” – Jim Stovall, Wisdom for Winners

In just a few short months, our world has changed. 

Even the word “pandemic” is scary.  Health officials have labeled the coronavirus as “novel,” because the human species has never been exposed to it.  We seemingly have no natural antibodies. As the news of the virus has unfolded, and nations and communities accepted that our first (and possibly only) line of defense was the concept of “social distancing,” I gained a newfound respect for survivors of previous pandemics. The Bubonic Plague. The Spanish Flu.  Or even 1612 when Native Americans welcomed the Pilgrim settlers traveling from Europe bringing with them smiles, smallpox, and leptospirosis[2]

Nexstar Broadcasting (NXST) – “Local Content is King”

Nexstar Broadcasting (NXST)

Date:         December 2, 2016

Sector:       Consumer Discretionary – Broadcast Media

Price/Market Cap:  $59.2/$1.81B

Target/Implied Upside:  $115/ 94%


[note: This is a write-up and update of research completed earlier in the year]

Thesis

Nexstar Broadcasting Group (NXST), a television broadcasting and digital media company, is in the early innings of both a company and industry-wide transformation. The company generates healthy free cash flow and trades at an attractive standalone valuation while also benefitting from strong growth in retransmission fee revenue. NXST expects to close a merger with Media General (MEG) by the end of the year, which will be immediately accretive and make NXST the second largest local television broadcasting company in the United States.