Nexstar Media Group (NXST, Financial) (NXST - $83.69 – NASDAQ) is the largest independent owner and operator of broadcast television stations. Due to the coronavirus, local TV stations su ered in the second quarter from signi cant revenue declines from lower advertising spending. However, shares of Nexstar, which is the nation’s largest local broadcaster, appreciated in Q2 as investors looked ahead from the current weak advertising environment, and as management guided to much stronger sequential ad placings in the third quarter. In particular, in a quadrennial presidential election year, investors found themselves enthused about more political ad spending being deployed in the year’s third and fourth quarters, especially with the pandemic limiting in-person events like political conventions and rallies. Also, Nexstar bene ted from the gradual economic reopening and investors’ expectations of rebounding non-political ad dollars, as well as from strong viewership of its station’s newscasts.
From Keeley Asset Management Corp (Trades, Portfolio)'s Small-Mid Cap Value Fund second-quarter 2020 shareholder commentary.
