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The market's taking a show-me attitude' to the company's latest acquisition
Granite Broadcasting Corp.'s big graduation day got no more than a yawn on Wall Street. At the end of January, Granite (NASDAQ: GBTVK), a New York company that operates 11 television stations across the country, released news that it had entered its first top 10 market by buying WXON-TV, a Warner Brothers affiliate in Detroit. Despite all the hoopla, its shares slipped to a 52-week low of $8.25 by late April, a full 44% off its 52week high of $15. Since then, the shares have rebounded to $8.38.
Of the nine analysts following Granite, seven rate the stock either as a "buy" or "attractive," according to Zacks Investment Research, even though Granite's earnings are negative. The reason for the optimism isn't Granite's profits,...