Stockchase Opinions

Christine Hughes DHX Media DHX.B-T PAST TOP PICK Sep 17, 2014

(A Top Pick Dec 10/13. Up 73.91%.) Still a Buy on pullbacks. It’s the US investors that are taking it up now. It’s content and the value of content has increased away from the distribution channels such as TV, Internet, etc. They can take all of their content and create new episodes.

$8.170

Stock price when the opinion was issued

other services
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

PARTIAL BUY

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.

SELL

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.

HOLD

The stock has not done well and struggles to meet earnings expectations. Management itself became frustrated and put themselves up for strategic sale. It is worth holding to see what the reviews will be, but would not be a new buyer.

SELL
He doesn't like their debt which is 6x EBITDA. He fears this could go bankrupt. Problems were they bought up TV stations from Bell, and lost Disney as core client and in turn will launch their own streaming service and compete with DHX. He's short DHX, which could go to 0.
HOLD
The company screwed up badly and they could not find a buyer when they put themselves up for sale. They still struggle with execution on earnings and have a volatile earnings profile. Their debt is high as well. He will give them a couple of quarters before deciding to get out.
DON'T BUY
They have not allocated capital in the best interests of the shareholder. They are now undergoing a turnaround. There is a huge opportunity for content providers this year. TBRD-X is a company he would prefer to DHX-T. TBRD-X is very carefully with how they allocate capital.
DON'T BUY
Between high debt, poor performance and flat revenue projections, he does not see a whole lot of reasons to own it. They put themselves up for sale but no buyer emerged.
DON'T BUY
It has undergone some rough times and has a lot of debt on the balance sheet from past acquisitions in the content business. They made management changes recently and sold off some of this. It is a higher risk investment that is difficult to value so he stays away from it.
DON'T BUY
Things aren't going well. Very expensive endeavour developing content. Be cautious. "Restructuring debt" is a signal for investors to go elsewhere.
DON'T BUY
Avoid. They're in a tough business, though have good brands. They also carry a lot of debt from acquisitions. Their chart does not look good.