Although not a radio or TV network, Data Broadcasting (DBCC) has been attracting pros' attention for two reasons. It's a pure play in the dissemination of stock-market information to investors. And the company is headed by two respected financial and entertainment moguls: Columbia Pictures ex-CEO Alan Hirschfield and entrepreneur Allan Tessler, who together own some 30% of the stock. "These co-chairmen and co-CEOs of Data have a reputation for always enhancing the value of the stocks they own," says one big investor.
At its current price of 4 a share, Data Broadcasting "has a p-e ratio of 13 that does not reflect the many favorable things going on in the company," says Joel Krasner, an analyst at Southcoast Capital, who has a buy rating on the stock. One of Data's products delivers real-time stock quotes from all major exchanges to a user's personal computer. Another product, QuoTrek, is a handheld quotation monitor that receives data via FM broadcast signals and displays real-time market quotes on a user-defined list of as many as 128 stocks at one time from the major domestic exchanges.
Krasner says Data Broadcasting's recent acquisition of Broadcast International, which gathers information and delivers it to retail and financial markets, will boost earnings and help establish new wireless ventures in finance and sports.
Krasner increased his earnings estimate for 1996 from 30 cents a share to 33 cents on projected revenues of $115 million. He expects Data to make 22 cents this year on sales of $80 million, up sharply from last year's 19 cents on $66 million.