May 3, 2010

Warrant trading idea - MEDIA-WB

MEDIA-WB stock code 4502WB
With 1Q10 TV adex growing 35% y-o-y on the recovering economy, albeit from a low base last year, Media Prima with its 90% share is poised to benefit most. The privatisation of NSTP, while EPS neutral, will add some RM100m to Media Prima’s free cash flow and strengthen its balance sheet’s ability to pay more dividends. Media Prima’s 1-year forward PE stands at only 14x which  is 4x below the 6-year average. MEDIA-WB is a good way to ride Media Prima’s upside potential. 


by: ECMLibra