Mark Jackson, CFA
CanWest Global Comm.
CGS-X
BUY
Dec 07, 2004
From a net asset value perspective, there is lots of value. Feels there can be considerable upside from here. Even though there was weakness in conventional TV, the numbers next year should be OK.
At this stage it is basically trading like an option on its survivability. Terrible balance sheet with about $4 billion of debt. Management has not been great.
Media space is a very tough one right now. Newspapers are suffering from declining advertising lines and readership. In the TV space a pay-TV provider went out of business today and local stations are closing down. High debt. Sell as a tax loss.
Massive spike on volume recently. Don't act on just a couple of days of action; you want a few days. If it continues to rise that would indicate momentum is starting to move in its favour. RSI index spiked into overbought territory. Would like to see a few more days of action.