After researching this weekend's offerings, I motion we move money from our cash account to purchase twenty shares of NewsCorp (NWSA). Although IMAX falls under the motion picture business, NWSA expands our firm's reach into print and published media. NewsCorp is said to hold the most cash in the entertainment industry, is bullish on 3D television and projects to beat it's 3Q numbers handily. In addition, the entire sector is flying- Time Warner, NewsCorp and CBS have all touched 52-week highs within the last few weeks. Word is NewsCorp has received inquires about selling MySpace to international networking companies and such a move would clean what many consider a toxic asset off the books.
I do like DISCA, but I'm hesitant to commit considering it reached it's all-time high today. I do acknowledge that the stock is up 10% since it was brought up in our meeting, which leads us to believe that it may be time to consider move expensive blue-chips.
Please keep in mind that this forum is publicly accessible through search engines, so offline discussions are best suited for email. I look forward to hearing everyone's feedback.
11 comments:
I second the motion. Another benefit coming soon from NWSA is going to be the release of "24" the movie which is owned by FOX.
Why are you hesitant about DISC reaching an all time, but not News Corp selling at 52 week high? Both stocks are doing extremely well right now.
I'm hesitant to jump into another stock that relys so heavily on motion pictures as we already have IMAX. Printed media is on the decline - newspapers are doing awful right now. Does that concern anyone else?
two differences jump out at me between DSCA and NWSA. 1) DSCA is trading at a nearly 30x multiple, very pricey... 2) NWSA is a much more affordable stock for us right now.
James the bulk of the media sector has recently touched their 52-week high while DISCA has never in the company's history been higher. I agree that newspapers are a dying industry, but magazines are thriving. There is also no better time for the motion picture business than the summer and we are getting in when the going is good. We can scoop twenty shares, see a reasonable return and bail in late July or early August before back-to-school. I'm just nervous to jump on DISCA when they are flying so high. Do you have evidence that their growth will continue climbing and not plateau?
Does the launch of Oprahs TV station next year count as evidence? Or the fact that Discovery channel is branching off into many other different countries and which means more markets...? I know its expensive, but its all relative if you ask me. A 20% gain is a 20% no matter how you slice it. Whether we have 5 shares at $40 or 10 shares at $20, 20% is still $40 bucks.
Just my two cents...
Does the launch of Oprahs TV station next year count as evidence? Or the fact that Discovery channel is branching off into many other different countries and which means more markets...? I know its expensive, but its all relative if you ask me. A 20% gain is a 20% no matter how you slice it. Whether we have 5 shares at $40 or 10 shares at $20, 20% is still $40 bucks.
Just my two cents...
I am with Jim and do not think we should get involved in news print media, even if magazines sales are up. I also think we should look at other sectors. We have passed on adding another stock to a sector that we are already in because we wanted to be diverse. i don't think we should change that theory, especially since we already missed significant gains. i think we should stick to our guns.
The only bright side i see in NWSA is the summer movie season. If we were to pick up this stock, I think we have the right plan. Buy and dump in a short time period.
I look at a stock, like the Patriots look at draft picks, take the best athlete available and not based on needs. With that being said, i understand the importance of being diversified, so if a few sectors are down, we don't get crushed.
The markets are quite volatile right now and buying low to sell higher can net quick profits, if timed properly. This move is also more advanced and can back fire on us if we aren't on top of it.
I have a stock suggestion that is around the $1.14 price, but i have some more digging to do, before i fully endorse this selection. The stock is SIRI, in case you wanted to review in the meantime. The position we would take would be short term.
Also, NBG is down to 2.85 again. no too far off from where Pat suggested we buy. The markets had a tough morning and this could be a good day to jump on board.
p.s. i do not have access to a computer most of the day, every day, so though i can read your post on my phone, i can not respond immediately. i do have CNBC scrolling on the TV in front of me though.
NewsCorp owns over twenty cable tv channels, the biggest movie studio in Hollywood, a stake in the Colorado Rockies and streaming web site Hulu, MySpace Records, Jamba! (mobile entertainment/gaming) and an array of other various entities in all facets of international media and entertainment. They even own half the rights to New Zealand/Austria National Rugby League (which over there is bigger than baseball and football combined in this country). In fact, the only U.S. newspapers that NewsCorp owns are The New York Post (800,000 weekly subscribers) and The Wall Street Journal. What other concerns do you have about NewsCorp's holdings?
Looking at other sectors is great. What specific stock in any other sector do you personally endorse? How does the Patriots' theory determine what we should buy if there are over five thousand stocks available?
I am more than willing to consider anyone's ideas provided that they feel confident enough to endorse a company with a motion to buy.
I endorsed AXP. Its up a ton!!!!! Check it out! but we were already in BOA. so we said no thanks.
You wouldn't consider my ideas, if i dont know myself if it is a good buy?
What if i am considering a stock that has potential and someone else thinks it is a really good buy after they check into it themselves? They may never have considered that if i had not mentioned it?
NewsCorp owns a stake in HULU?
Great website! How much a stake do they own?
I will do some additional research on Newscorp tonight. I obviously don't want to miss on another one like AXP based soley on the fact that we own another stock in the same market.
We missed out on AXP yes... and we have missed out on many others. Let's all try to press forward and come to an agreement on where to invest our money. I love the discussions we are getting here.
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