Opinions
Christine Hughes
DHX Media
DHX.B-T
TOP PICK
Dec 10, 2013
Stock price when the opinion was issued
You might be interested:
Produces and licenses children's content such as TV shows. Also licenses the properties to toymakers on different types of products. Got into a bit of a quandary where they were ramping up debt load and the earnings growth slowed down. The market punished the stock. Valuation is now getting to a level where it is a bit easier to digest. There are also activists entering the stock. The recent move by Disney, where they purchased some assets from Fox and were making a big statemen of the importance of owning content, is important. There may be potential buyers sniffing around a company like this, for the content. Still a higher risk, but he would be okay with a half position.
The CEO just stepped down. They were growing fast and adding debt to find it but then the growth fell off and they were left with the debt, so they started a strategic review and the CEO stepped down. This is not a great development. You should look elsewhere. He thinks they will have to sell the company now.
Content is king and this company owns a lot of 2nd tier kids animated videos. Content providers can now distribute their content to more than just TV channels. They can do Netflix, YouTube, etc. They have the bargaining power. Thinks it will, eventually, get taken out. Recently, bought the Family Channel and the Disney Channel off of Bell Canada (BCE-T) in order to satisfy the regulators.