With a return on assets of nearly 18% and a raw intrinsic value of 38 a share, ARB is poised to return to the high 20s / low 30s level over the next 180 days. That is a 70-80% gainer.
Arbitron, Inc. provides media and marketing information services in the United States and internationally. They are a solid marketing company and their financials look good.
I am not a fan of the amount of debt they carry but it looks like debt is par for the course in the industry. The good part is 89% of their shares are held by mutual funds and retirement plans. For the long term, highly paid money managers expect this to make money. I do also, with a high side in the low 50s, I would expect to see a move up to the mid 30s over the next six months.
$18.81 (08/27/09)
