Editor’s Note: Featured tickers: Hemisphere Media Group Inc (NASDAQ:HMTV)
Hawkeye Capital is a hedge fund founded and still run by Richard Rubin, formerly of MHR Advisors. The fund recently filed an amended 13D form with the SEC, disclosing an interesting equity and warrant holding. The 13D states that, as of May 22, 2013, the fund held 2,243,219 shares, as well as being entitled to another 561,250 shares issuable upon the exercise of warrants, in Hemisphere Media Group Inc (NASDAQ:HMTV). As a result, the fund is the beneficial owner of about 22.25% of the company.
See the original amended 13D here.
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Hemisphere Media Group (NASDAQ:HMTV)
The Miami-based Hemisphere Media is a U.S. TV/cable networks and content platform, concentrating on the Hispanic market. The company consists of Cinelatino, a Spanish-language cable movie channel; WAPA America, a Spanish-language cable channel targetting Puerto Ricans and other Caribbean Hispanics and WAPA TV, a broadcast television network and content producer based in Puerto Rico.
The company commenced trading on the Nasdaq as recently as April 23, 2013. Opening near $10, the stock has been in major, if volatile, uptrend, and currently trades at $14.52 as of this writing. The company also recently reported quarterly earnings with revenue at $19.6 million, and an adjusted EBITDA at $8.5 million, with a net loss of $0.5 million.
Hemisphere Media Group (NASDAQ:HMTV) sports a market capitalization below $200 million, and it appears this is a value opportunity wrapped in a momentum play; ‘momentum at a reasonable price,’ as one might put it. Though quarterly financial data for the company is sparse, it does currently sport some heavy expected EPS growth on the Street, with sell-side analysts 113% bottom line expansion next year alone.
A concentration on the Hispanic market’s TV presence in the U.S. passes the eye test, as non-Hispanic, white Americans are expected to lose the majority of the population by 2043. Hispanic population growth will be a major factor in this trend, and media companies look poised to benefit. Hemisphere’s added focus on Puerto Rico should bode well too.