Zacks’ Voice of the People Highlights user JoeCole: “Discovery Channel: A great takeover target!!” from the People & Picks community.
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Discovery Channel: A great takeover target!!
Valuations for Discovery Communications – B (DISCB):
Price/Earnings 27.57
Price/Book .07
Price/Cash Flow .75
Price/Sales .13
Price/Earnings/Growth (PEG): .78
Growth numbers:
Long term growth consensus est.: 25.82%
Change in EPS from 2008-2009: 75.08%
Last years sales growth: 2%
This years est growth (consensus): 66.34%
Technicals:
http://stockcharts.com/h-sc/ui?s=discb
Very low volume OTC stock, Discovery – B. Normally I cringe at these as they lack liquidity and visibility for institutional investors; however, this stock is well known in the industry and has a loyal fan base. Definitely stick with the A-shares (DISCA) if volume is critical to you, as they trade around a million shares per day.
The stock has outperformed the S&P 500 Equal-Weighted Index benchmark over the past year, which indicates greater than average demand increase.
http://stockcharts.com/h-sc/ui?s=discb:rsp
Based on the low volume, I would recommend placing open buy orders around the $26 support level for DISCB in order to take advantage of any anomalies.
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