YOUNG BROADCASTING INC-A YBTVA
May 16, 2007 - 2:57pm EST by
dadande929
2007 2008
Price: 3.60 EPS
Shares Out. (in M): 0 P/E
Market Cap (in $M): 80 P/FCF
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT

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Description

Young Broadcasting Inc. owns and operates television stations in geographically
diverse markets and a national television sales representative firm.  The
Company's stations are affiliated with American Broadcasting Companies, Inc.,
CBS Inc., and National Broadcasting Company, Inc.

As we write stock price is 3.60 and daily volume is 101,000 average
52Wk High    4/30/2007       4.80
52Wk Low    10/ 4/2006       1.95 on

Company has 20 mil A shares 1 vote per share, 1.9 mil B shars 10 votes per share, 32% owned
by  family members per Proxy but probably all owned inside, as there is no market.

The 60-year-old CEO is a terrible manager (CFO is good). CEO inherited from his
father who died at 90 some odd and was an outstanding individual.

The stock is down from 42 six years ago and got down to 2 at the end of last year.
It is currently 3.60

Here's the essence of value reasoning analysis:

Company owns TV station KRON in San Francisco for which they paid the record
price for any TV station in the world.  I think it was 750 million some years
ago. The can't seem to runit profiatably. That station, could (and should) be
sold easily today to NBC or ABC or another for probably 450 million maybe more.

In addition, company owns nine affiliate stations, which are easily each 80
million or more each, say 720 million plus.

All stations thus worth close to 1.2 billion, if not more.

Less net debt of 718 million leaves approximately 480+ million divided by 22
million shares equals just under $22 a share versus a market value of 3 and
change.

Shares trade today at 10.9 x LTM EBITDA Suspect thet KRON is so poorly run that is may be producing none while 9 owned affiliate stations produce plentiful EBITDA

A positive sign is that YBTVA's bonds, 8 3/4s, 2009 trade just below par and
10s, 2011  just above par

Negatives:
 None of below occurs in my or your lifetime

Catalyst:
 One - A sudden death of boss man, holder of class B shares
 Two - Private equity investor approach to buy company at five times the price
or more
 Three - Sale of KRON

Catalyst

One - A sudden death of boss man, holder of class B shares SEE TWO AND THRE ABOVE

Two - Private equity investor approach to buy company at five times the price
ormore

Three - Sale of KRON
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