SwingTrade Member Forum

[MikeDDKing]

ROIAK - Turn around situation with huge potential!

ROIAK is a radio broadcasting company that owns 53 broadcast stations located in 16 urban markets. Here are the reasons for my excitement over ROIAK:

1. ROIAK posted second quarter earnings of $0.12 which is awesome for a company that last traded at $0.50/share. Here is a link to the news release - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40274600

2. They did some significant cost cutting and also indicated that they thought Q1'09 will be the low point for 2009 radio revenues. Thus, it seems to me like they can post similar earnings numbers in future quarters.

3. ROIAK has book value of roughly $4 so they are trading at a huge discount to book value. They do have some sizeable debt but the first portion of it doesn't come due until 1/1/2011 at the earliest.

4. The best part is they have a huge buyback in progress and as of June 30, 2009 had approximately $50M in capacity available under the plan. The $50M capacity is greater than the market cap of the company! In Q2 and the first half of 2009 they purchased approximately 6.4M and 20.8M shares respectively. That made a huge dent in their share count which is down to only 59.4M shares.

5. Finally, media stocks have been running hard recently. Some multi-baggers include CBS, SALM, ETM, RGCI, LEE and probably many more. ROIAK has only doubled off of the lowest point in February. Since they just reported great earnings and are trading at a fraction of book value I think they have significant room to run.