CBS shares got knocked around for the second day in a row as investors start to catch on to the fact that the Big Media stock rally was way ahead of itself.
After a Friday close at $8.55,, traders sheared 11% off Monday and by the end of today’s session the stock sat at CBS at $7.05–and even that represented a late-day comeback. That means Sumner Redstone is down about $30 million on this one in two trading days just on his Class B, and knowing how close he watches his Bloomberg, it had to drive the guy crazy. His Class A position is down roughly $58 million in the same period based on the most recent SEC filings.
The Wall Street Journal jumped off the bandwagon today, too, writing:
But CBS is heavily exposed to TV stations and radio, both suffering from a secular decline as much as the recession.
Consider the first quarter. Radio revenue fell 29% from last year’s first quarter. That, in turn, was down 8.5% from the year earlier, itself down 8.5% on 2006. While station sales have contributed to the decline, it is tough to assess radio’s postrecession bounce.
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