We came across a bullish thesis on Sinclair, Inc. (SBGI) on wallstreetbets Subreddit Page by Virtual_Seaweed7130. In this article, we will summarize the bulls’ thesis on SBGI. Sinclair, Inc. (SBGI)’s share was trading at $13.68 as of April 11th. SBGI’s trailing and forward P/E were 2.92 and 21.98 respectively according to Yahoo Finance.
A television broadcaster preparing a new Spanish-language program for its viewers.
Sinclair Inc. (SBGI), the second-largest television station operator in the U.S., is catching serious attention after its Executive Chairman, David D. Smith, nearly doubled his stake in the company, buying ~$10 million worth of stock in just 30 days. While Sinclair operates in what many consider a declining legacy media industry—owning or operating 193 stations in over 100 markets and reaching 40% of U.S. households—the market has already priced in this pessimism. The company trades at extremely compressed valuations, with a PE of 2.8 and just 1.5x operating income, implying that investors are essentially buying the business for the next two years’ earnings. Despite a debt-laden balance sheet, Sinclair remains cash flow positive and recently refinanced its debt, suggesting confidence in its ongoing operations. However, the real story goes beyond value metrics. Smith has close ties to Donald Trump and is widely credited with helping shape conservative media messaging during his presidential campaigns. That connection could prove pivotal as Trump’s FCC is now pushing for deregulation, actively inviting media companies to suggest rules to eliminate. With Sinclair’s historic right-leaning tilt and a subsidiary, Free State, that is designed to help government agencies with digital outreach and advertising, the groundwork may be forming for a media expansion play tailor-made for a Trump-aligned platform—possibly even “Trump TV.” The company’s January debt restructuring appears to support this theory, freeing up liquidity that could be used for strategic growth amid potential regulatory rollbacks. In this light, Sinclair becomes far more than a cheap value play; it becomes a high-upside speculative bet on political connectivity and regulatory tailwinds. With a re-energized executive chairman aggressively accumulating shares, the potential for a major re-rating looms large, creating a unique, asymmetric opportunity for equity investors willing to look past the declining broadcast narrative.
Sinclair, Inc. (SBGI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held SBGI at the end of the fourth quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of SBGI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SBGI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.