*Revenue declined roughly 10% in 2Q:08 to approximately $205 million from $228 in 2Q:07, as result from MEG's Tampa operations continue to weigh on MEG's top-line results.
*2Q:08 revenue was also well below Sharptrader's $217 million estimate, however EPS was better than we expected as MEG's moves to cut costs and lower interest expense($10.5 million vs. our $11.5 million estimate) offset disappointing sales.
*MEG took a hefty $500 wite down on its Media assets which was not unexpected given the current advertising enviroment we do not think the non-cash writedown will impact MEG's debt covenenets but we will be sure to ask the question on the call.
*The silver lining to this write down is MEG will be able to offset gains on its assets with the loss.
*We will most likely fine tune our estimatates following the earnings call and we continue to think MEG shares are cheap at the current $11-11.50 price level.
About Me
- Rich Tullo
- Richard Tullo is a securities analyst and trader with more than 20 years of experience. During the late 1990s he brought more than 40 technology companies public as a NASDAQ market maker for Hambrecht & Quist and Cowen and Co. From 2001-2004, Rich Tullo was an investment analyst for Providence Capital an activist hedge fund in New York. More recently, Rich was an analyst with Sidoti and Company a noted independent research firm and published investment reports on the Media and Telecom industry. Rich Tullo has also published numerous editorials, reports and industry white papers on infrastructure investing and exotic investment instruments