CBS Needs Growth, Not Dividend Boost
CBS may be boosting its dividend, Cramer said, but it’s growth that investors want.
CBS’s outdoor advertising was a standout in the company’s earnings report, surpassing radio, which is in “some sort of spiral downward,” Cramer told Erin Burnett during Tuesday’s Stop Trading!. Now, the media firm needs to take another step to grow its businesses, he continued, like buying a cable channel.
“CBS feels like a wasting asset to me,” Cramer said.
If investors want the cash that comes with a strong dividend, the Mad Money host recommended ConEd instead.
Elsewhere in the industry, Cramer reiterated his call on Discovery Holdings , saying that “niche, high-end cable is making money.” All DISCA needs is a good restructuring and it would make a much more attractive takeover target, he said. He also praised WWE for its strong business.
Lastly, Cramer recommended any and all ethanol advocates review Tyson Foods’ Monday conference call. The company reported a loss of 2 cents per share, mainly, CEO Richard Bond said, because ethanol mandates are pushing costs much higher. He called for Washington to intervene and bring down the price of corn.
“The truth is so stark on ethanol,” Cramer said, “and [Bond] was not afraid to say it.”
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