MRN:Consider this one which hasn't been covered much at all, I...

MRN:Consider this one which hasn't been covered much at all, I used to be scared of anything that had Maquarie in the name however after seeing how Maquarie Telecom has performed and realizing the MAQ satelite companies have no ties to the bank anymore, I have a sigh of relief. Maquarie radio Network is the largest talk back radio station in Australia which duplicates its programs on more than 60 stations all across Australia: http://www.2gb.com/. They are also establishing a talk back radio station in Melbourne which has had one main player for decades: http://www.mtr1377.com.au/. Now i am convinced that with modification talk back radio will be around for decades to come because people still need just plain old audio in the cars when they are walking you name it. MRN has modified their websites really well so that poeple can access their programs via podcast anytime of the week. Top presenters include Alan Jones, Ray Hadley, Ross Greenwood (Roger Montgomery is a regular guest) and Steve Vizard. The market for radio will remain and MRN has kept up with the times by modifying their websites and more. recently MRN announced HY11 an increase in revenues of 28% with an increase in expenses (low cost model) of only 11% which equated to an increase in NPAT of 95% (eps increased 95%). this company will continue to have falling cost of doing business COBD (ie increasing margins) because once they have the radio stations in place and have contracted the presenters they can just continue to duplicate and duplicate (charge and charge) with out having to rebuild their infastructure every year. They had a change in management in 2009 which is proving to be a great move. I estimate MRN for FY11 will have NPAT of $9.1M (the CEO is conservative in his guidance) and divide that by 77.7M shares which equates to 11.7 cents per share or a forward PE of 10 which would be a 48% increase (7.9cps in FY10). I estimate MRN should be valued at $1.60 to $2.20 at the moment. At $1.20 their dividend is 8% fully franked.