Media General Inc (fka MEG)

[adeezl]

Buffet's in MEG @ $5 so expect a bounce from star power. Cheers

http://www.trefis.com/stock/meg/articles/154266/what-is-warren-buffett-buying/2012-11-16

To start, he’s buying broadcast TV. Berkshire Hathaway bought nearly 20% of Media General (NYSE: $MEG). This is a small holding for a portfolio of Berkshire’s size, but it does show bullishness on the part of Buffett for traditional media.

I like to think I am a contrarian investor. But then I look at Warren Buffett and I realize that I’m not nearly as big of a contrarian as I thought. I wouldn’t touch traditional media right now because I can’t see where the profits will come from. Advertising is an industry in flux, and TV competes with the internet for eyeballs.

But then, there is a proper price for everything, and Buffett seems to believe that, at .16 times sales, Media general is simply too cheap to ignore.