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The big bang investment.

CBS, with properties such as The CW, Showtime Networks, TVGN, Smithsonian Networks and Simon & Schuster, has great growth opportunities for the future and a fallen stock that seems undervalued now.

CBS is a company in transition, moving toward a stronger business model that's less focused on advertising and more on creating its own content to air and license out. It already has complete ownership of some of the most popular shows on TV and more than 70 percent of its total lineup.

With top-rated TV series such as "NCIS'' and "The Big Bang Theory,'' the company has led broadcast networks in Emmy nominations. Furthermore, CBS recently announced its own stand-alone Web subscription service, giving it even more control.

More content creation can fatten the company's bottom line as these series are picked up for lucrative deals not just in the U.S., but internationally. For instance, "NCIS: New Orleans'' already has a large international deal in place; CBS may earn as much as $5 million in revenue per episode.

CBS stock was recently trading with a price-to-earnings ratio of just 10.7, and it's also financially healthy.

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Title Annotation:Business
Publication:Telegram & Gazette (Worcester, MA)
Date:Dec 14, 2014
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