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Cash is King and so Are Sinclair and Nexstar

If it goes down that low again and you have $6,450 in cash you'll be able to buy 112 shares. That's how investors can get rich investing in stocks, not by buying at stock or market highs. By the way, Netflix will report quarterly earnings on Oct. 21, and the current price appears to reflect the great EPS growth expected.

With many companies guiding downward and profit growth likely to be restrained for now, investors needs to look for stocks with the strongest EPS growth prospects.

According to Ned Davis Research, since June 28 (after the last market correction) companies with the best EPS growth outperformed weak ones by more than 4% between then and now.

One subsector that has done well the past year and still has promising upside with outstanding growth prospects are the local TV broadcasters that carry the local news and reruns of still popular sitcoms.

Two good examples are Sinclair Broadcast Group (SBGI - Get Report) and Nexstar Broadcast Group (NXST - Get Report). Both have boomed in the past 12 months.

Sinclair Broadcast is not a one-trick pony. It's a television broadcasting company that owns or provides programming, operating, or sales services to television stations in the United States.

It broadcasts free over-the-air programming, such as network provided programs, locally produced news shows, local sporting events, programming from program service arrangements, syndicated entertainment programs, and other locally produced programs.

Sinclair owns and operates programs or provides sales services to 162 television stations in 77 markets, after pending transactions.

Sinclair's television group reaches approximately 38.7% of U.S. television households and includes FOX, ABC, MyTV, CW, CBS, NBC, Univision and Azteca affiliates. In addition, Sinclair owns four radio stations." It was founded in 1986 and went public in 1995.

Sinclair will report its third quarter earnings Nov. 6.

The story with both Sinclair and Nexstar is extra-juicy because both companies have valuable spectrum that could be leased or sold to wireless companies. Analysts who are bullish on broadcasters believe the two companies have spectrum licenses that could be worth as much as the companies' total market value today! Sinclair has a $3.5 billion market cap and Nexstar is a much smaller $1.35 billion.
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