Four Stocks Bernard Selz Bought in Q1 and One He Got Rid Of

Nexstar Broadcasting Group Inc. (NASDAQ:NXST)

– Number of shares held by Selz Capital LLC as of March 31: 50,000

– Value of Selz Capital’s holding as of March 31: $2.21 Million

The New York-based investment firm also initiated a new stake of 50,000 shares worth $2.21 million in Nexstar Broadcasting Group Inc. (NASDAQ:NXST) during the first quarter. Nexstar Broadcasting Group operates as a television broadcasting and digital media company that focuses on acquiring, developing and operating television stations and interactive community websites in medium-sized markets in the United States. In January 2016, the company announced plans to acquire Media General Inc. (NYSE:MEG) for $10.55 per share in cash and 0.1249 of a Nexstar Class A share for each Media General share. Under the terms of the agreement, Media General shareholders are also set to receive an additional consideration in the form of a contingent value right (CVR) to net cash proceeds from any sale of the company’s spectrum assets, which could be worth up to $4.29 in after-tax value per share. Nexstar’s net revenue increased by $265.1 million, or 42% year-on-year, during 2015 to $896.4 million. The increase was mainly driven by new revenue from newly-acquired stations and entities, as well as an increase in retransmission compensation on the company’s legacy stations due to contract renewals. A decrease in advertising revenue, as 2015 was neither a political year, nor an Olympic year, put some pressure on the company’s 2015 top-line figure. Nexstar shares have lost 18% since the beginning of 2016 and trade at around 12.7-times expected earnings, significantly below the forward P/E ratio of 18.5 for the S&P 500 Index. Christian Leone’s Luxor Capital Group had 1.11 million shares of Nexstar Broadcasting Group Inc. (NASDAQ:NXST) in its equity portfolio at the end of 2015.

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Wynn Resorts Limited (NASDAQ:WYNN)

– Number of shares held by Selz Capital LLC as of March 31: 15,000

– Value of Selz Capital’s holding as of March 31: $1.40 Million

Bernard Selz’s firm acquired a 15,000 share-stake in Wynn Resorts Limited (NASDAQ:WYNN) during the January-March quarter, which was valued at $1.40 million on March 31. Wynn Resorts operates as a developer, owner and operator of destination casino resorts that owns 72% of Wynn Macau Limited, which operates an integrated resort in Macau, and an integrated resort in Las Vegas, Nevada. Earlier this month, Wynn Resorts announced preliminary financial results for the first quarter of 2016, showing that Wynn Macau continues to struggle. Precisely, the company anticipates net revenue from the Macau operations in the range of $603 million to $613 million for the quarter, down from $705.4 million reported for the first quarter of 2015. Meanwhile, first-quarter net revenues from Las Vegas operations are anticipated to fall in the range of $384 million to $394 million, as compared to $386.9 million reported a year ago. Just recently, analysts at Deutsche Bank downgraded Wynn Resorts to ‘Hold’ from ‘Buy’ and cut the price target to $94 from $101, saying that the company might not be able to support a “meaningfully higher price target”. The downgrade is said to reflect the fundamentals of the Macau region, which has been registering lower volumes of visitors. Shares of Wynn Resorts are up 39% so far in 2016 and trade slightly above the price target set by Deutsche Bank. Murray Stahl’s Horizon Asset Management owns 157,309 shares of Wynn Resorts Limited (NASDAQ:WYNN) as of the end of the first quarter of 2016.

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