Alex Leyland says when scouring the current market for value as well as potential for growth, traditional media has appeared on his radar. When compared with new media the valuations on stocks such as APN, Fairfax, Seven and Nine looked relatively cheap and deserved further investigation. Leyland says one of the key risks to any company relates to balance sheet. In the case of many of these businesses this risk had been removed following asset sales or capital raising. With this risk largely removed some of these names, such as FXJ & APN, have seen a decent re-rating. Leyland, however, believes the structural challenges facing traditional media may have been overplayed as new media stocks mature and head offshore in search of growth. With yields approaching double-digit levels and the sector at a cyclical low point Leyland shares the stocks he believes are worthy of further investigation.
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