This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

DIY Broadcast ETF: Build Your Own, Starting With Meredith and LIN

Stocks in this article: LIN MDP DISCA SSP SBGI NXST

NEW YORK (TheStreet) -- The conventional wisdom is that media companies are on the decline.  So why are some doing fantastically, like LIN Media (LIN - Get Report) and Meredith (MDP - Get Report)? Both are rising to meet or exceed their 52-week highs. And LIN and Meredith's performance is part of a trend that began in late summer.
The key is the spectrum -- the broadcast spectrum. ( And it's no secret that I love the spectrum.) Several media companies control an invisible commodity, the valuable electromagnetic broadcast spectrum. Companies like LIN and Meredith can license this spectrum, which was originally designated for AM radio stations. But there's a great deal more here.

To learn more about the broadcast spectrum, watch this 3-minute video. You'll hear from Ruth Milken, the Chief of the Wireless Telecommunications Bureau for the Federal Communications Commission. You'll learn about supply and demand for the nation's airwaves. This electromagnetic spectrum encompasses everything from telephony to wireless Internet to TV.

As Milken makes abundantly clear, the big challenge that media companies and the FCC are facing is the soaring demand for spectrum. The supply of broadcast spectrum is greatly exceeded by demand. With smartphones and tablets, data demand is growing exponentially worldwide.

The companies that have licensed sufficient broadcast spectrum are now becoming enormously valuable.

Take Meredith. It's a media and marketing company with a wide range of businesses.  Those include magazine publishing, brand licensing, television broadcasting, digital and customer relationship marketing, digital and mobile media and video creation operations.

One of Meredith's most valuable assets, it turns out, is its broadcast spectrum licenses. According to a recent Wells Fargo analysis, the spectrum value per share (SVS) of Meredith's stock is somewhere between $17 and $18.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs