GMA Networks/GMA Holdings (Initiation) - High Quality, Undervalued Media Asset

Quality-Value Investing

Marc Melendez, CFA

Emerging Market Small and Mid Cap Equities

Reperio Capital

Reperio Capital Research was founded in 2013 with the goal of better serving the investment community with in-depth, high quality, value oriented research.

Reperio means to discover in latin. Using value investing principles, we aim to discover a minimum of 12 investment opportunities per year within the Emerging Markets Small and Mid Cap universe.

We take a business owners perspective with a long term investment horizon. We conduct bottom up, fundamental research. We focus on downside risks and require a significant margin of safety in any investment to prevent the permanent loss of capital. All factors differentiating our research from the short term, trading focus of traditional research providers.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/23035" target="_blank" data-smartkarma-citation="entities:23035:1">GMA Network Inc (GMA7 PM)</a> (GMA) is in very strong competitive position with economies of scale, customer captivity, and regulatory barriers protecting the company from competitors. Despite the company’s business quality, it trades on a dividend yield of 9.1%. The concern is low or negative top line growth driven by shifts in advertising away from television to other platforms. Television advertising revenue is expected to grow at roughly 2.0% over the next five years. Growth combined with a company dividend yield of 9.1%, the annualized return should be 11.0% without factoring in market share gains.</p>

GMA Network Inc (GMA7 PM) (GMA) is in very strong competitive position with economies of scale, customer captivity, and regulatory barriers protecting the company from competitors. Despite the company’s business quality, it trades on a dividend yield of 9.1%. The concern is low or negative top line growth driven by shifts in advertising away from television to other platforms. Television advertising revenue is expected to grow at roughly 2.0% over the next five years. Growth combined with a company dividend yield of 9.1%, the annualized return should be 11.0% without factoring in market share gains.

GMA Network Inc

GMA Network 2017 Results Review