Citadel Broadcasting’s stock price was up double digits Monday on the NYSE. But that 12% gain at the end of the day erased only part of Friday’s dramatic 38% plunge, after the company came up short with its Q3 results. Bear Stearns analyst Vic Miller said the 38% "correction" seems extreme, costing the company 385 million in market capitalization in a single day, "but investors are looking for something to hold on to." He added, "The network showed strong improvement in Q3, but investors likely want to see some success at the stations and see the size of the dividend to be paid." Citadel has not declared a dividend since the closing of the ABC Radio acquisition in May, which increased its public float by 500% from adding 152 million new shares distributed to new shareholders from Disney. Miller still rates the company "Outperform" and projects a dividend payout of 29 cents per share, which would have been a 12% yield at Friday’s closing price. That dividend estimate is based on a comment by Citadel CEO Farid Suleman that the company expected to pay out 50% of its FCF in dividends.
