The Zacks Analyst Blog Highlights: CBS, JPMorgan Chase, Lions Gate Entertainment, Lamar Advertising and Simcere Pharmaceutical Group
For Immediate Release
Chicago, IL – April 1, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CBS Corp. (CBS), JPMorgan Chase & Company (JPM), Lions Gate Entertainment Corp. (LGF), Lamar Advertising Co. (LAMR) and Simcere Pharmaceutical Group (SCR).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday’s Analyst Blog:
CBS Buys 50% Stake in Pay Channel
CBS Corp. (CBS) announced the successful completion of the acquisition of 50% stake in TVGN, TV Guide Network’s pay channel, and the website TVGuide.com from JPMorgan Chase & Company's (JPM) One Equity Partners. The company shelled out an approximate of $100 million for the purchase. The price paid by CBS is significantly lower than $123 million paid by One Equity Partners for a 49% stake 4 years ago.
TV Guide magazine, a separate entity and owned by OpenGate Capital, is, however, not a part of the deal.
Following the acquisition, CBS has become a partner of the entertainment company, Lions Gate Entertainment Corp. (LGF), which holds the remaining 50% interest in TVGN. Lions Gate bought the network in 2000 for $241 million.
CBS’ association with Lions Gate is not new, as the companies have worked in collaboration in the past. Lions Gate produces the shows "Weeds" and "Nurse Jackie" for Showtime, a pay cable channel owned by CBS.
TVGN, which airs reruns of programs like "Who's The Boss," ''Ugly Betty" and older movies, is now available in more than 80 million homes. Though no changes were currently made in the channel, the company said that it will announce rebranding efforts and a new programming strategy later.
CBS has been looking to expand in the basic cable arena for some time. Moreover, in a strategic move to unlock the value of the assets, CBS decided to convert its CBS Outdoor operations in North America and South America into a real estate investment trust (“REIT”) and divest its Outdoor businesses in Europe and Asia. CBS appears to be following the footsteps of billboard operator, Lamar Advertising Co. (LAMR) which intends to convert itself into a REIT, as announced last August.
We believe CBS Corporation’s decision regarding the Outdoor business would augur well for the company, as it would lower its dependency on advertising, which remains vulnerable to the economy’s health.
Currently, CBS has a Zacks Rank #2 (Buy).
Good News for Simcere Pharma
Simcere Pharmaceutical Group (SCR) recently received encouraging news from the Chinese State Food and Drug Administration (:SFDA). The Chinese SFDA granted the good manufacturing practice (:GMP) certification to the influenza vaccine production facility at Jiangsu Simcere Vaxtec Bio-Pharmaceutical Co. Ltd. A GMP is a production and testing procedure that ensures the quality of the product.
Simcere Vaxtec is a subsidiary of Simcere Pharma. Simcere Pharma holds a 52.5% equity interest in Simcere Vaxtec. Simcere Vaxtec now plans to recommence its influenza vaccine production.
Meanwhile, Simcere Pharma announced that the company’s executive vice president, Mr. Hong Zhao recently resigned due to personal reasons. The resignation will be effective from Apr 1, 2013.
Earlier this month, Simcere Pharma announced that the company’s board has received a buyout proposal from Mr. Jinsheng Ren, New Good Management Limited, Assure Ahead Investments Limited and its subsidiaries.
As per the proposal, the conglomerate intends to acquire the entire outstanding ordinary shares of Simcere Pharma, for $9.56 per American Depositary Share (ADS) or $4.78 per ordinary share in cash (1 ADS = 2 shares).
In response, Simcere Pharma’s board has formed a special committee of independent directors, headed by Mr Alan Au, to consider the proposal. The special committee has retained Shearman & Sterling LLP as its legal counsel for the proposed transaction. The proposal is under consideration.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Read the analyst report on CBS
Read the analyst report on JPM
Read the analyst report on LGF
Read the analyst report on LAMR
Read the analyst report on SCR
More From Zacks.com