DISCK

Discovery, Inc

TMT


Presented:04/10/2018
Price:$20.68
Cap:$7.88B
Current Price:$24.42
Cap:$59.88B

Presented

Date04/10/2018
Price$20.68
Market Cap$7.88B
Ent Value$15.77B
P/E RatioN/A
Book Value$12.13
Div Yield0%
Shares O/S381.00M
Ave Daily Vol5,045,728
Short Int26.96%

Current

Price$24.42
Market Cap$59.88B
Discovery, Inc. is a media company, which engages in the provision of content across distribution platforms and digital distribution arrangements. It operates through the following segments: U.S. Networks, International Networks, and Education and Other. The U.S. Networks segment owns and operates national television networks such as Discovery Channel, Animal Planet, and Investigation Discovery and Science. The International Networks segment consists of international television networks and websites. The Education and Other segment offers curriculum-based product and service offerings. The company was founded by John S. Hendricks in September 17, 2008 and is headquartered in Silver Spring, MD.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG, GOOGL), Amazon.com Inc (AMZN), Discovery Inc (DISCA, DISCK), DISH Network Corp (DISH), Netflix Inc (NFLX)

Highlights

The presenter is long shares of Discovery (DISCK), seeing upside from advertising sales following the Scripps acquisition as well as content that’s better positioned than the overall media climate would indicate. The current share price - $20.50 - overrates the bear thesis of declining subs and the risks of being left out of bundles, whereas the presenter believes there’s a path for stabilizing sub revenues and a good chance for inclusion in new bundles. He models $3.50 and $3.90 in 2018 and 2019 EPS, respectively, and thinks the gap in value between the K shares and A shares should close in his favor.

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Idea Discussion

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