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Re: New WBZ top of the hour ID

Mel is betting that the long-term value of Infinity's stock is higher than 
the market price today.  My guess is he's making a good bet.  Also, by 
bringing the radio division under the larger Viacom, the current problems 
that radio is having in the market will not hurt the stock price.  If people 
believe in the Viacom, they will buy the stock and concerns about radio will 
have little impact on the stock price.  The major problem with radio stocks 
is high debt ratios and lower than expected income growth.  The debt issue as 
significant with Viacom, as it is with other radio companies.  Infinity also 
has much stronger properties than some of the other companies.

Of course, billions of dollars are made and lost on these kinds of bets.  Mel 
and Sumner have made more good bets than bad over the years.

-- Dan Billings, Bowdoinham, Maine

In a message dated 9/23/00 12:45:57 PM Eastern Daylight Time, 
bostonradio@yahoo.com writes:

<<  Considering how
 sharply *all* radio stocks dropped this past week, this may
 not be a wise move on Karmazin's part since he's buying a falling
 stock(Infinity trades for about half of what Viacom's stock is worth).
 Infinity's stock dropped 6% in value just in one day(Wed.) as
 a report(from Merril Lynch) came out that radio growth is down a
 whopping 15% compared to last year... >>