RBR readers know that radio stocks have fallen dramatically this summer. Bear Stearns analyst Victor Miller notes that broadcast stocks have fallen 32% in the recent "financial turmoil" on Wall Street, while the Nasdaq Composite has fallen only 6%. Has that created some bargains in broadcasting? Miller is advising clients seeking a flight to quality to buy CBS, which is down 11% from its July 23rd peak. His "beaten up pick" is Radio One, which, despite some troubles with leverage and its Los Angeles stations, has an attractive multiple and asset value in the LA station and its still-young TV One. And then there are stocks where deals are pending at prices well above the current trading price. Miller says he believes six banks are committed to financing the Clear Channel buyout, but the stock is trading at a 10% discount to the buyout price. Cumulus is trading at a 19% discount to its pending buyout price.
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