Noticed that two of our local radio operators, Salem and Entercom, had their stock price hit a 52-week low today...and it looks like both were all-time lows, too. Was there some bad news released today or is this just an indication of the state of radio in 2008?

Sometimes the value of a stock and the price are two different things. Case in point when Mark Cuban sold Broadcast.com to Yahoo for $6.8Bn the company was only generating $47million if I remember correctly. The price was 144 times billing. Some internet stocks had incredibly high prices and when it was based more on hype than real value. In this case the radio companies may be worth more than their stock indicates but right now investors don't have confidence in the medium. In the case of Salem, with the type of formats the company uses they are more 'recession' proof than other companies. At least according to analyist....anyway they may have it at a 52 wk low but they are probably worth more.

An RAB report, and Wall Street's reaction, made this a bad day for radio across the board. November sales figures showed a 7% decline overall, including 15% year over year decline in national sales revenues, and a 5% year over year decline in local sales.

Wall Street analysts cut their estimates for the year to a negative 3%... and started downgrading their revenue estimates for 2008. The groups which had been previously most optimistic in projecting their own growth were hit the hardest.

There are now so many new advertising/marketing channels open to advertisers, and those channels are much more attractive, being highly targetable and filled with the young. Radio is slipping down the food chain fast.

And I honestly don't know how they stop the fall.

viable, entertaining, relevant programming, focused promotions, and a strong community presence.... that, and quit running ads for Sirius sattelite radio. Why tell your listeners where they can go for commercial free programming just to earn a few short term dollars?

There, glad I could help.

I thought I heard some muckity-muck awhile back say "Less is more!"

(ducks and runs outta the room...)

Yeah, I just dont get it! Why do I hear advertisements ALL the time for Satellite radio on all the big FM statioms, WHY????? They are competition!!!

Because if radio publicly "admits" that Satellite is the competition, then they are basically opening the door wide to the Sirius/XM Merger.

The NAB is fighting tooth and nail to convince regulators that Satellite Radio is an industry of Two -- not just a subset of radio like Country Radio, Talk Radio, Fm Radio, Sat. Radio...etc.

I'd expect to see the spots disappear from the face of the earth 5 minutes after the merger is finally approved (or disapproved.)

Thanks, that was a question on my mind also.

Go NAB! I personally don't like the idea of Sat being a single source delivery technology.

It should work like Sat TV does. There are two providers, and that's enough to keep them working, particularly when balanced by cable as an alternative.

What's the NAB motivation? Industry of two, because?

HASANYTHING TO DO WITH 910???

Does an industry of two really constitute competition? It's just too easy for them to "accidentally" collude on pricing, programming, etc.

On the other hand, don't the astronomical startup costs of a business such as sat broadcasting relegate it to the "natural monopoly" status enjoyed by various public utilities?

Wow, they dropped even lower on Friday. Salem down over 8%, Entercom down nearly 5%!

thatswhat the get for messing with 910kkisn!!!!!

To be fair, everything is down, but radio stocks are getting hit even harder because the business model is in decline and headed for further declines.

More on the radio sector's stock fall:

http://biz.yahoo.com/ap/080108/radio_operators_sector_preview.html?.v=1