CBS Corp. (NYSE: CBS) has its hands full with sinning talent.
The Washington Post Co.'s (NYSE: WPO) Newsweek reports that CBS Evening News anchor, Katie Couric -- who is dating a 33-year-old cougar -- plagiarized in her Notebook segment from a story by Dow Jones & Co.'s (NYSE: DJ) Wall Street Journal [subscription required] reporter Jeffrey Zaslow's March 15th Moving On column. Newsweek alleges that Couric's segment on the decline of libraries copied Zaslow's article in nine places. In response, CBS fired the Notebook segment producer.
And earlier in the week, Don Imus, whose radio program is carried by CBS Radio, suspended his show for two weeks after his comments on the Rutgers women's basketball team. So far Imus's remarks have cost his show two advertisers -- Procter & Gamble Co. (NYSE: PG) and Staples, Inc. (NASDAQ: SPLS). If enough cancellations follow his show will be dropped altogether.
I don't watch any CBS programming and I would avoid CBS stock. With a P/E of 17.5 and earnings expected to grow 13% in 2008 to $2.00, CBS trades at a Price/Earnings to Growth (PEG) ratio of 1.35. This seems expensive for a company whose $14.3 billion in sales have shrunk at a five year compound annual rate of -9.2% and whose net profit margin of 10.3% trails the industry average by three percentage points.
My view: skip Couric, Imus, and CBS stock.
Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in CBS, Dow Jones, Procter & Gamble, Staples or Washington Post securities.
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Reader Comments (Page 1 of 1)
4-11-2007 @ 3:56PM
dickthedog said...
Both parties {D}&{R}and the "self-proclaim" leaders of black folks?, need to become part of the solution, not stay part of the problem.
How long are the people-All the people-of this nation going to continue to allow special interest groups, White and Black to determine our way of life?
4-11-2007 @ 8:01PM
KEN said...
AS IT STANDS RIGHT NOW I WILL STOP WATCHING CBS. I WILL NOT SHOP AT STAPLES. BUY STUFF FROM P & G AND NOT WATCH THE VIEW WITH ROSIE AND HEAR HER TALK ABOUT THE P.O.W. IN CUBA WHILE WE ARE STILL FINDING BONES AT THE WORLD TRADE CENTER ...YOU GAVE DON 2 WEEKS I AM HAPPY WITH THAT HE SAID HE WAS SORRY .. YOU HAVE ALL THESE RAPPERS THAT GET AWAY WITH A LOT MORE..I ALSO HAVE STOCK IN C.B.S.
4-12-2007 @ 10:47AM
Eleanor Webb said...
If Imus had not set up Al Sharpton as judge and jury he would have been a lot better off. As bad as his comment was, he does not deserve to lose his livelihood. Evidently words that are acceptable for one race are not acceptable by another. Talk about a double standard. I also notice that Al Roker always makes it a point to find Black people to interview on the Todday Show. I'm tried of double standards.
4-12-2007 @ 10:02PM
gene said...
katie is my age and would be happier with someone her on age belive me been there done that. no fun just heart ache. so for katie look around and see if you can not still find someone like me to make you happy all the time. and trust me i look great for a 45 year old man,with love and happiness to share. don't end up hurt you don't need that. but the press would love it and to wacth you fall would make a big headline you know? so be carefull and just look for true love ok? someone who likes you alot. me
4-13-2007 @ 8:06AM
Grey said...
I will never watch cbs again. The firing of Don Imus was extreme. I am willing to bet if a black host made a derogatory comment towards a white person not a word would have been said. Imus was fired for offending someone. I am firing cbs because I am personally and deeply offended about the firing of don Imus.
4-15-2007 @ 1:27PM
Roy Finch said...
CBS now that you have fired a man who has made you a lot of money because he eaid somthing worng and was a good man to admit it and say he was sorry. However you will continue to encorauge and broadcast the very RACIST dogma of Al Sharpton and Jesse Jackson for free. what kind of media company does this make you? I think it says you are a vile corpation to be selective in that way.