Jul

29

 July is creeping toward an end and I'm starting to see the first back-to-school ads pop up on television. Before you know it, it will be September and then the beginning of fall.

Before moving to Florida, I always had mixed feeling about fall. While you have the start of football and pennant-race baseball along with the release of the fall/winter book catalog by most fiction publishers, it also meant that winter was on its way. Since relocating, weather changes just mean I might have to wear shoes at some point in the next six months, so I look forward to September more than ever.

This year, however, I view autumn's approach with a twinge of trepidation. In addition to baseball playoffs and football, this year we will see another season begin. Election season will soon be upon us and the advertising barrage will begin anew. There will be so many political ads here in Florida that folks peddling erectile dysfunction pills and adult diapers are going to have a hard time getting a sales pitch in edgewise.

It will be the same for much of the country as the primary elections, especially on the GOP side, are going to get ugly quick. Without straying too far into politics, I have to say that I fully expect the Democratic primary to get just as ugly before all is said and done, too.

There is a huge profit opportunity in this barrage of ads. Local newspapers and radio stations will see a significant pick-up in business as candidates attack each other and single-issue PACs push their various initiatives. There will be more chatter about this as we get closer to year-end but the time to consider buying the local TV and radio stocks is now while everyone is focusing on tech earnings and Chinese growth rates.

The Hispanic vote is going to be very important this year and Spanish-language stations and papers should reap a bonanza. "Spanish Broadcasting System" (SBSA) owns 20 radio stations located in the top U.S. Hispanic markets of New York City, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico. The company also owns MegaTV, a television operation with over-the-air, cable and satellite distribution and affiliates in the U.S. and Puerto Rico, in addition to websites and apps for Spanish-language news, entertainment and music. The stock is reasonably priced right now, with an enterprise value/EBIT ratio of 6, but sales and earnings should see an enormous boost next year.

I am a big fan of A.H


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