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Kyle Ferguson
Kyle Ferguson
Articles (522)  | Author's Website |

Jim Chanos Adds to Starz

Company is trading close to 1-year low in price, has multiple streams of income and is expanding operations

December 08, 2016 | About:

Guru Jim Chanos (Trades, Portfolio) of Kynikos Associates added 21,542 shares of Starz (NASDAQ:STRZA) to his portfolio during the third quarter for an estimated price of $30.82 per share. The trade had a 0.22% impact on the portfolio. He now owns 166,666 shares of the company.

Chanos is a short-seller and is known for shorting Baldwin United and Enron.

Starz has a market cap of $3.43 billion, an enterprise value of $4.41 billion, a price-earnings (P/E) ratio of 19.67 and a price-book (P/B) ratio of 12.29.

Starz is an integrated global media and entertainment company.

The company provides premium subscription video programming in the United States to cable companies, satellite television providers, telecommunications companies and online video providers.

Starz was incorporated on May 7, 2007. As of Dec. 31, 2015, it has 772 full-time employees.

According to GuruFocus, Starz has a 5 of 10 financial strength rating with a cash to debt ratio of 0.01, an equity to asset ratio of 0.18, a Piotroski F-Score of 5 and an Altman Z Score of 3.80. The Beneish M-Score of -2.83 indicates the company is not a manipulator of its financial statements. Starz also has a 7 of 10 profitability and growth rating with an operating margin of 20.86%, a net margin of 10.99%, a return on equity (ROE) of 78.27%, a return on assets (ROA) of 11.40% and three-year revenue growth of 5.60%.

Jim Chanos (Trades, Portfolio) may have decided to add to his stake in Starz during the third quarter because the company has multiple streams of income, its currently expanding its operations and the company was trading close to its one-year low in price. As a short-seller, he could also have made the purchase as part of an opposing bet. 

Since Chanos added to his position in Starz, the market price has gained an estimated 14%.

Stars is trading below its intrinsic value, according to the Peter Lynch chart below.


Disclosure: Author does not own any shares of this company.

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About the author:

Kyle Ferguson
Kyle Ferguson is an investor, author of The Christian Bubble, and he is a world-renowned human and animal rights activist, and the co-founder of The Light Movement. He is outspoken, fearless, and relentless. Kyle lives in Montreal, Quebec, and he is dedicated to making the world a better place with love and light.

Visit Kyle Ferguson's Website

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