Amid ongoing rumours of a merger with CBS it seems that Viacom shares are now in demand: 15 Jan 2018: Viacom, Inc. (VIAB) Catches Eye: Stock Jumps 9.6% 12 Jan 2018: Viacom, CBS not in active merger discussions: sources
Oh how the mighty have fallen! Is Viacom one of the old dinosaurs which thought it did not need to move with the times then realised too late it was being left behind by the new tech sector?
Well that didnt last long! Is the run over before it even started? Another dinosaur on the road to extinction?
Looking at the graph, $35 seems to be the crucial point at which investors can legitimately claim a chart breakout. It must be a resurgence in takeover rumours which has pushed the price higher because investors have had some time to appreciate any “hidden value” and failed to respond.
Hi JR, what target do you have for this stock? Is this one of those where there is hidden value despite everybody turning negative? Or is it purely a takeover play?
I think a possible eventual takeover is certainly not off the table. It's also very cheap, has strong institutional interest, and other attractive characteristics such as strong cash flow, return on equity, etc.
Cash flow is king and always has been - poor cash flow is the reason why many of the "new age technology companies" fall by the wayside, they simply run out of cash while promising investors jam tomorrow. I remember the company who owned the Candy Crush Facebook game, they had billions in the bank but had to close down as they were burning cash like a bonfire!
This one has still remained relatively strong despite recent market volatility so maybe there is renewed investors interest behind the scenes. Is a merger on the cards? Are they working on a deal behind the scenes?
This one is showing decent relative strength in these difficult market conditions. Recent takeover speculation must surely prompt the management to deliver or bail out?
