With all eyes on Entercom stock, bargain hunters swooped in to give the radio broadcasting company a much-needed gain on Wall Street. With the Closing Bell on Tuesday, ETM shares were up 6.2% from Monday.
This pushed Entercom shares up to $7.75.
Volume was slightly above average at 2.8 million shares.
MarketWatch columnist Michael Brush may be to thank.
In an impassioned brush-off of digital media, he writes:
If you’re dismayed by Facebook’s privacy breach, the way the company shamelessly tries to make you addicted and the shallowness of its content, close your account.
That’s the advice of tech guru and virtual-reality pioneer Jaron Lanier, author of “Who Owns the Future?”
If the same issues have you questioning Facebook as an investment, here’s a fix.
Invest in radio.
Specifically, Entercom, which has a huge national reach now because it just bought CBS Radio.
Brush continues that he’s not a Facebook hater. But, “for investors looking for ad-growth investments beyond the social-networking giant, radio is the ultimate anti-Facebook. A radio investment is not going to track potential ethical and regulatory issues into your portfolio like Facebook might. And there’s a good case to be made that this old-media radio stock might outperform Facebook.”
He then offers a Facebook vs. Entercom “face-off” in six key areas.
His bottom line:
Entercom will never have the kind of ad sales growth that Facebook has been posting. But for investors, that might not be the point. Often in investing, you make more money when things go from bad to OK, than you do when they go from great to even better.