The very first thing CBS (NYSE: CBS) CEO Leslie Moonves told the investors at Citi’s 18th Annual Global Entertainment, Media & Telecommunications Conference: “Our stock is undervalued.” With CBS stock sitting near its year lows, that statement set the tone for his presentation, during which he denied that the economy is having a negative effect on the company’s business. Instead, he assured that as of Q4 every one of its businesses is exceeding expectations. The stock moved up nearly 2.5 percent today on what was generally an up day for the market. But the stock is down almost 10 percent year to date and nearly 30 percent off its highs last summer.

-- Digital strategy: The Last.fm acquisition is a good example of (CBS Interactive President) Quincy Smith’s philosophy “to get community around content.” CBS sees itself as a content company, so it will look to build out community around sports, the news and TV. Moonves pointed out that during Grey’s Anatomy commercial breaks, traffic to Grey’s Anatomy-related sites spikes, dying back down when the show comes on. The meaning: the internet is a friend to TV. Right now, the company is sitting on cash that it hasn’t fully deployed, but it’s certain that more digital acquisitions will be part of the mix. Content acquisitions are definitely on the radar, though Moonves didn’t go much into detail on what that meant. Looking back, the company doesn’t regret missing any deals over the past couple of years, given the price paid for them. In other words, it’ll pay for digital growth, but it still has to be at the right price. (Hint, hint to Digg?) Substance-wise, this is all fairly similar to statements he made in December during Media Week. But at that time, it sounded like he was choosing his words a little more carefully, given that they were still actively negotiating with the writers. This time he didn’t hesitate to state that the interactive business is leading the way in terms of growth. More after the jump.

-- Broadcast business: Moonves pointed to ratings for NFL games and political debates as evidence that there’s still a lot of value in broadcast: “In this universe of fragmentation, it more and more points out how big the bang for your buck is with the network.” Basically, the popular broadcast antidote holds a lot of appeal to advertisers looking for the best way to reach a mass audience. As for DVRs, the company thinks they’ll be a long-term plus and that it’ll contribute to more TV watching, which will offset lost commercial viewing. Specifically, it believes 35 percent DVR penetration is the magic number for this to happen, which it expects sometime around the end of 2008.

-- Strike: Moonves is hopeful that talks will start up again soon, and suggested that “there are some steps being taken” on this front. As for the timeline, he’s “guardedly optimistic that it will be over in the next few months.” In the short-to-medium term, the strike, he claims, isn’t having a negative effect. Note that last year, the standard line was that major media companies would be fine through at least the end of 2007.

• @ UBS Media Week: Les Moonves, CEO, CBS; Digital Future Bright, But No Need for Shades (Yet)