ATVDY - Gray Television Shares Can Gain More Through Cost Efficiency Focus

• Gray Television has been growing substantially over the last couple of years, for the large part driven by acquisitions.
• Shares have also provided attractive returns. Year-to-Date 2020, however, share prices have declined in spite of a recovery that has already followed the big pandemic related plunge in last March.
• There's a top-line challenge ahead. 2021 comes with uncertainty about the advertising revenue, which is still the key source of revenue for the company.
• There are also potential benefits from recovery of non-political ad revenue to pre-pandemic levels, unlocked synergies with acquired companies and growing retransmission revenues.
• If Gray Television can indeed benefit while focusing on cost efficient operations, I believe there's a substantial upside for the shares. The current valuation is attractive and I'm cautiously bullish.

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