Slovenia Plays
Cramer was bullish on Centeral European Media (CETV) tonight because he feels that the move by Harrah’s Entertainment (HET) to build a casino there has made the region investable. But, Harrah’s Slovenian casino won’t be finished until 2008, too far off to make Harrah’s a play on Slovenia, he said. And, it’s too hard to do homework to invest in companies in Slovenia that don’t trade here. However, Central European Media (CETV), an operator of private TV stations in central Europe, does trade in the U.S. and derives 18% of its revenue and 26% of EBITDA from Slovenia, said Cramer. CETV owns two of the top four networks in Slovenia and has a 35% market share there, he said. CETV reported 138% year-over-year revenue growth last quarter, and although the stock appears expensive at 83 times this year’s earnings, the company is growing so fast, it is trading at just 24 times next year’s earnings, he said. Cramer thinks you will make out like a bandit with CETV.



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