Stock Recommendation: Sun TV Network
Sun TV Network lost more than 10% even after announcing very good results. This is the classic sign of bear markets and loss of confidence among investors towards stock markets. Sun TV has strong presence in TV (20 channels), Radio (44 stations) and publication segments (2 newspapers and 4 magazines). Its DTH arm (Sun Direct) grabbed 1 million subscribers within 6 months of its launch. Lack of strong presence in internet (fastest growing medium) is the only concern for this Southern media giant.
Even good stocks are falling due to lack of support and analysts are downgrading many stocks. If you are a smart investor and can able to look beyond next 2-3 month period, you will see many bright spots in the India growth story especially in fundamentally strong companies. Oil prices will come down, political turmoil will calm down and inflation will fall to below 10% levels.

Why one should have Sun TV in portfolio:

1. Sun TV network is the number one broadcaster among all the four Southern states.
2. Sun network is the number one pay broadcaster in South Asia.
3. Aggressive management of Kalanithi Maran.
4. 41 Radio stations all over India.
5. Reasonable valuations when compared to other media giants.
6. Sun TV Network is a zero debt company.
7. Except Internet, it has strong presence in Television, Radio and publications segments.
8. Sun TV is a strong bonus candidate as it has huge cash reserves. But Company may use them in its DTH operations and in launching new FM stations and radio channels.
9. Marans are planning to launch English news daily.
10. Kgb Promoters hold 90% shares and less than 7% foreign share holding made this stock comparatively safe investment.