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Tickers in this Article: GOOG, CBS, VIA, EVC, NXST, RCI, SBGI
When most people think of television broadcasting companies, they immediately think of the larger network stations such as CBS Corporation (NYSE:CBS), or even some of the more popular premium networks such as Viacom's (NYSE:VIA) MTV channel. However, there are several publicly traded broadcasting companies that have been flying under the radar and are trading near several month highs. While internet-based products such as Hulu and Google's (Nasdaq:GOOG) Youtube have been threatening the demise of broadcast television, these stocks may be signs that the format isn't ready to die yet.

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Entravision Communications Corp. (NYSE:EVC), together with its subsidiaries, operates as a diversified Spanish-language media company that uses a combination of television and radio operations to reach Hispanic consumers in the United States, as well as the border markets of Mexico. From a technical perspective, EVC cleared a base in early December and has been consolidating above the base since then. It pulled back to test the base in early January and quickly found support. Last Friday's candle managed to reclaim the 20-day moving average and also closed at the high of the week. EVC could challenge the recent highs this week, and could possibly break out to new highs if the general markets cooperate.

Source: StockCharts.com

Nexstar Broadcasting Group (Nasdaq:NXST) is a television broadcasting company that engages in the acquisition, development and operation of television stations in medium-sized markets in the United States. It also cleared a base in early December and settled into a consolidation that is still in progress. It has been trading in a very narrow range, but NXST also closed at the high of the week last Friday, and the momentum could carry it to a test of its recent highs. There is clear support near the $3.75 level, making this an area to watch for a failed breakout.


Source: StockCharts.com

Rogers Communications (NYSE:RCI) operates as a communications and media company in Canada. The chart for RCI differs from the previous companies, but it also operates across several different segments including wireless, cable and media. RCI cleared a bottoming base in late October and has managed to hold above that base despite some volatile swings. RCI had a high volume pullback in mid December, but quickly found support and bounced back within a few sessions. Currently, RCI is trading in the middle of a new base it is building, and is finding support near its 20- and 50-day moving averages. A move above the past few day highs could lead to a move to the top of the base.

Source: StockCharts.com

Sinclair Broadcast Group (Nasdaq:SBGI) is a television broadcasting company that engages in the ownership or provision of programming, operating, or sales services to television stations in the United States. While the chart for SBGI differs from RCI, many of the same concepts apply. SBGI cleared a longer term base in a sharp rally last October, and while it retraced a very large portion of the breakout, it did manage to enter a consolidation that held near the breakout area. It began to move higher in mid December and traded up to the prior breakout's highs. Currently, SBGI is flagging near the highs formed from the last two breakout attempts. It's possible that the third time will be the charm if it challenges for a breakout again. The level to watch is just above $5 a share.
Source: StockCharts.com
Bottom Line
Oftentimes, smaller companies are ignored by traders, but they tend to offer great swing or position trade setups. Traders should look at average trading volumes and understand that often these stocks will be more volatile, but as long as traders size their positions accordingly they can offer great opportunities. These stocks appear to be on their way to testing their recent highs, and could resume their prior breakouts with some market cooperation. Stay tuned: the death of the TV may be on hold for now.

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The author does not hold a position in any of the companies mentioned above at the time of this writing.

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