Stock To Watch: Crown Media Holdings NASDAQ:CRWN


Crown Media Holdings, Inc. (NASDAQ: CRWN)

Yesterday Wikipedia, WordPress and other websites blocked access to content in protest against US anti-piracy bills. Whether Congress passes or vetoes SOPA and/or PIPA, one company who may benefit from a passing of the bill is Crown Media Holdings. With over 87 million subscribers to its “bread and butter” revenue maker, Crown Media owns and operates pay television channels in the U.S. and Puerto Rico.

With The Martha Stewart Show and everyone’s favorite “Rajun Cajun” Emeril Lagasse highlighting the Hallmark channels premiere shows, it’s no wonder that revenues jumped 18% to $74 million in the third quarter lining the $223.8 million reported revenue for the 9 months ended September 30, 2011. One main line item which highlights why CRWN is such a good stock to buy now is that Adjusted EBITDA was $23.7 million for the third quarter of 2011 compared to $10.0 million for the same period last year.

The following highlights are from CRWN third quarter operating results filed November3, 2011:

  • Strong advertising sales. Advertising revenue increased by 13% over the nine month period ended September 30, 2010 comprised of an 87% increase in Hallmark Movie Channel revenue and a 7% increase in Hallmark Channel revenue.
  • Movie premiere success. Hallmark Channel aired five original movie premieres in the third quarter of 2011 — all of which, according to Nielsen, ranked in the Top 10 for the time period in which they aired for key demographic and total households delivery.
  • Significant growth for Hallmark Movie Channel. Hallmark Movie Channel remains one of cable’s fastest growing networks — ranking among the top five ad-supported cable networks for highest year-to-year audience growth this summer in both Prime Time and Total Day according to Nielsen. From September 2010 to September 2011, Hallmark Movie Channel averaged a monthly increase of 373,000 subscriber homes. In the Beta 2011 “Digital Cable Subscriber Study”, the network ranked #2 in awareness against all 42 digital basic cable networks that were evaluated. It also ranked as #3 in average viewer satisfaction among women and #3 among women who mentioned it in their five favorite digital basic cable networks.
  • Improved daytime block ratings. The Hallmark Channel daytime block, which includes brand new series Emeril’s Table featuring master chef Emeril Lagasse and all new episodes of The Martha Stewart ShowMartha Bakes, and Mad Hungry with Lucinda Scala Quinn, premiered on September 26th. Compared to last year, according to Nielsen, the daytime block has increased total household delivery by 15% and the key demographic of Women aged 25-54 by 25%.
  • Successful refinancing. On July 14, 2011, Crown Media obtained $510.0 million of third-party debt financing and used the proceeds to retire $305.7 million of term loans and $185.0 million of preferred stock, all of which was held by a related party. The retirements resulted in a $103.0 million increase in the Company’s paid-in capital.



Based in Studio City, California, Crown Media Holding’s stock is traded under the symbol CRWN on the NASDAQ and has 170 listed full time employees.

Website: http:// /

Company Snapshot:

Trading Symbol: NASDAQ: CRWN
Last Price: $1.18
Avg Vol (3 month): 104,150
Avg Vol (10 day): 83,586
Market Cap: 424.42M
EBITDA (ttm)6: 233.46M
Total Cash (mrq): $21.00M
Shares Outstanding: 359.68 million shares
Shares Short (12/31/11): 4.21 million shares
Shares Held by Insiders: 91.82%
Institutions Holding Shares: 47
Top Institutional Holder: 2,179,943 shares
JP Morgan Chase & Company
(as of 9/30/2011)
Top Mutual Fund Holder: 500,952 shares
iShares Russell 2000 Index Fund
(as of 10/31/2011)
Contact Information: 12700 Ventura Boulevard
Suite 200
Studio City, CA 91604
Investor/Analyst inquiries: Annie Howell
Crown Media Holdings, Inc.
SVP Communications and Media Relations
Next Earnings Date:  March 2, 2012
Profitability Margin (ttm) 101.31%
Operating Margin(ttm): 33.75%
Return On Assets(ttm): 8.12%
Return On Equity(ttm): 267.02%
Qtrly Revenue Growth (yoy): 18.40%
Operating Cash Flow(ttm): $41.60M
Levered Free Cash Flow(ttm): $186.20M


Crown Media Holdings, Inc.(NASDAQ: CRWN) opening price in the stock market today is $1.18.
CRWN is trading -6.60% below its 50 day moving average and -17.63% below its 200 day moving average.
CRWN is -63.47% below its 52-week high of $3.23
CRWN‘s PE ratio is 1.73 and its market cap is $424.42M.


Bottom Line:

It’s been a rough couple of days for the stock, losing – 7.52% over the last few days but with a short float at 14.43% which equals 40.83 days of average volume, CRWN is a candidate for a short squeeze.

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