Low Valuation in Canadian Entertainment
Corus Entertainment is a communications and entertainment company that operates radio stations, television networks, and produces and distributes films and television programs. [PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CJR-B.TO'" symbolprices="25" div_align="right"]
We are initiating a full position in CJR. It pays a hefty 4.5% dividend and has a solid balance sheet and track record.
Although the profit potential on CJR is not very large, we believe that the stock is fairly low risk.
Purple Chips 12 -18 month target: $28.00
LOW VALUATION IN CORUS ENTERTAINMENT AT $24.05 (CJR.B-T $24.00)
PURPLE CHIPS TARGET: $28.00 POSITION SIZE: FULL (5.0%) P/E: 13.6X DIV: $1.09 (4.5%) MKT CAP: $1.9B Debt: $900M RETURN ON CAPITAL: 136% EARNINGS YIELD: 8.4% 5 YR EPS Growth rate*:4.6% P/E/G Ratio: 2.99X 2014 EPS: $1.65 2015 EST.: $2.09 2016 EST.: $2.17
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
