I’ve done a great deal of research on CCME. Both Kunal and I have owned the stock since it was TMI, we traded our stock out multiple times. Lately I’ve been building a massive position of the stock, and I usually don’t like to get in too deep on any play – but this company seems to have a great deal to offer.
After watching IDI fall significantly since my initial purchase, I felt I needed to dig deeper on CCME. So I did – I went through their numbers and business models AGAIN in detail, and it almost seemed as if IDI was in a completely different planet then CCME in terms of their business. That said, IDI numbers were not that bad, and the stock is still worth $10, trading at 5x earnings, so I continue to hold out for the long run.
So like any good investor I continued to buy CCME on the dips and trade stock out on the rips, but lately I’ve just been adding, and adding, and adding. Yesterday VISN came out with their earnings and it was a disaster. The company was way overvalued to begin with, but obviously people are concerned that this may have an effect on CCME. So I know the two companies are different, and I know that VISN did an acquisition recently that they paid too much for – they aren’t aligning properly, and their sales team seems broken.
I found two great posts on Investors Hub that are accurate, saves me time from having to re-type them.
I also found an interesting article from Chimin Sang, who I don’t hold in high regard due to his brutal analysis of LIWA – in which he tried to take down the company when it was at $8, then went to $14 and he lost his shirt. Well he’s back at it again, but this time he wrote an article on VISN, and it’s actually pretty good. If anyone understands how an accretive acquisition should work it’s me. These guys overpaid, it’s that simple.
How do I take him seriously though?