Citadel (CSL) may give mike back to Imus

Tom Barlow — Fri, 05 Oct 2007 12:00:00 EST

The Hat That Mumbles, aka Don Imus, is close to reaching agreement with Citadel Broadcasting (NYSE:CDL) to bring his talk show back to the public airwaves. According to Variety, Imus will spurn the interest of Sirius Satellite Radio (NASDAQ:SIRI) to join Citadel's network. The corporation, the third largest radio group in the U.S., owns ABC Radio, as well as a number of web sites and on-line radio stations.

Imus, you will recall, was canned by CBS Radio (NYSE:CBS) for his idiotic 'nappy-haired ho's' remark in reference to the Rutgers woman's basketball team. Ironically, the controversy proved to be a goldmine for Mumbles, who won a $20 million settlement from CBS Radio for improperly terminating his contract.

Variety wrote that, since ABC Radio traditionally chooses its own talent (and I use the word loosely), Citadel's signing of Imus would not guarantee that he would appear on ABC Radio stations. However, given the money that Imus will likely demand, I believe he'll have to run on the radio network in order for Citadel to recoup its investment.

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Citadel (CSL) may give mike back to Imus originally appeared on BloggingStocks on Fri, 05 Oct 2007 12:00:00 EST. Please see our terms for use of feeds.

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Disney completes sale of ABC Radio

Brent Archer — Wed, 13 Jun 2007 14:15:00 EST

Filed under: Deals, Walt Disney (DIS), Options, Technical Analysis

Walt Disney Co. (NYSE: DIS) opened at $33.50. So far today the stock has hit a low of $33 and a high of $33.55. As of 12:30, DIS is trading at 33.09, down 0.02 (-0.1%).

After hitting a one year high of 36.79 in May, the stock has dropped sharply over the past three weeks. News yesterday evening confirmed that Disney has completed its sale of its ABC Radio Holdings Inc. unit to Citadel Broadcasting Corp. (NYSE: CDL) for approximately $1.35 billion. Recent technical indicators for DIS have been bearish and steady, while S&P rates the stock as a 5 STARS (out of 5) strong buy.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $37.50 range. DIS has not been above $37.50 since the technology boom and bust and has shown resistance around $36 recently. This trade could be risky if the weaker dollar spurs more international tourists to Disney's theme parks, but even if that happens DIS would have to rise by 13.1% and break through its previous highs before this position would be in trouble.

Brent Archer is an options analyst and writer at Investors Observer. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You When To Dump A Stock.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, he neither owns nor controls a position in DIS or CDL.

Disney completes sale of ABC Radio originally appeared on BloggingStocks on Wed, 13 Jun 2007 14:15:00 EST. Please see our terms for use of feeds.

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