With shares of Time Warner Cable (NYSE:TWC) trading around $136, is TWC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s MovementTime Warner Cable is a provider of video, high-speed data, and voice services in the United States, with systems located in five geographic areas: New York, the Carolinas, Ohio, Southern California, and Texas. The company offers its residential and business services customers numerous services over its broadband cable systems. With such a large and growing user base, look for Time Warner Cable to continue to see rising profits from its media, entertainment, and communications offerings.
Time Warner Cable shares rose above the price of $132.50 per share offered on Monday by smaller rival Charter Communications Inc, a deal that was swiftly rejected by the No. 2 U.S. cable TV operator.�Time Warner Cable’s shares were up 3 percent at $136.40 on Tuesday morning, suggesting some investors expect a higher bid.�Calling the bid “grossly inadequate,” Time Warner Cable rejected the $37.3 billion offer, the third attempt by Charter to acquire the company.�Analysts said Time Warner Cable’s demand of $160 per share was reasonable and Charter could raise its bid.�”We believe something in the neighborhood of 10 percent near-term upside (for Time Warner) if an agreement at TWC’s asking price of $160 were to be announced is reasonable,” Stifel Nicolaus analyst Christopher King said in a note.�Charter’s Chief Executive Tom Rutledge said the company now planned to take the deal directly to Time Warner Cable shareholders.�Charter proposed to pay around $83 per share in cash and the rest in its own stock. Including debt, the deal is worth about $62.35 billion.
Top 5 Sliver Stocks To Watch Right Now: Gannett Co. Inc. (GCI)
Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.
Advisors' Opinion:- [By Rich Duprey]
Not only did Gannett� (NYSE: GCI ) shareholders re-elect its board, ratify its public accountants, and approve a say-on-pay measure at the�media conglomerate's annual meeting yesterday, but the board of directors also declared the company's second-quarter dividend of $0.20 per share, the same rate it's paid for the past five quarters.
Hot Media Companies To Watch In Right Now: DIRECTV(DTV)
DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.
Advisors' Opinion:- [By Richard Moroney]
Since launching its share-repurchase program in 2006, DirecTV (DTV) has spent nearly $29 billion to shrink its share count by 61%. For the 31 quarters ended September, the company paid an average price of $32 per share.
- [By Doug Ehrman]
DIRECTV (NASDAQ: DTV ) stock surged when the company announced earnings results earlier this week, easily beating analyst estimates and highlighting the importance of sports programming to TV providers in driving revenues and profits. In the earnings call that followed the release, CEO Mike White was cagey about the future of the company's relationship with the NFL that costs about $1 billion per year and is set to expire in 2015. The market reacted well to the news, driving up DIRECTV stock by nearly 7% on the news, and allowing it to reach its highest level in a decade.
Hot Media Companies To Watch In Right Now: Thomson Reuters Corp(TRI)
Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.
Advisors' Opinion:- [By Associated Press]
Ron Brown, head of Elektron Analytics, a Thomson Reuters (NYSE: TRI ) unit that sells news feeds that computers can read, said that the words "explosions" or "Obama" alone wouldn't have triggered selling. But add "White House," and it's a combination even the slowest computer couldn't miss.
Hot Media Companies To Watch In Right Now: Time Warner Cable Inc(TWC)
Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.
Advisors' Opinion:- [By WALLSTCHEATSHEET]
Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company’s�shareholders may give incoming Chief Executive Officer Rob Marcus the will to reject a $62 billion offer for the company. The stock has seen a consistent uptrend in the last few years and is currently trading sideways. Over the last four quarters, earnings have been mixed while revenues have been rising which has left investors happy about recent earnings announcements. Relative to its peers and sector, Time Warner Cable has been a relative year-to-date performance leader. Look for Time Warner Cable to OUTPERFORM.
- [By Sean Williams]
Finally, cable operator Time Warner Cable (NYSE: TWC ) found itself back in the limelight, up 3.9%, with research firm Jefferies�seeing upside in Time Warner Cable's shares to $135 if a deal were to get done between it and Charter Communications. Ever since Gannett�purchased Belo�two weeks ago, M&A rumors in the cable sector have been unstoppable. This is a case where I'd strongly suggest ignoring the analyst white noise and focusing instead on the underlying fundamentals of the company. Time Warner isn't particularly expensive at 15 times forward earnings, but I also don't consider it the value it once was, either.
- [By WALLSTCHEATSHEET]
Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company�� battle with CBS has ended to Time Warner Cable’s disadvantage. The stock has been trending higher in recent years and is now pulling-back from all-time high prices. Over the last four quarters, earnings and revenues have been rising, however, investors have expected a little more from the company. Relative to its peers and sector, Time Warner Cable has been a weak year-to-date performer. WAIT AND SEE if Time Warner Cable can stabilize at current prices.
- [By Lee Jackson]
Time Warner Cable Inc. (NYSE: TWC) said recently it is willing to take on more debt to make the right acquisition. That acquisition could be another cable company. The consensus price target is pegged at $126. Investors are paid a 2.3% dividend.
Hot Media Companies To Watch In Right Now: News Corporation(NWSA)
News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.
Advisors' Opinion:- [By Lisa Levin]
News Corporation (NASDAQ: NWSA) shares gained 0.61% to touch a new 52-week high of $18.13. 21st Century Fox announced its plans to sell its 47% stake in Star China TV.
- [By WALLSTCHEATSHEET]
News Corp. is a media and information services company that has recently spun-off of its very profitable entertainment segment. It is being reported that the company recently made a profit which is a turn around from last year, signaling signs of improvement. The stock has seen progress but is now pulling-back as markets book gains. Over the last four quarters, earnings and revenues have been on the rise which has left investors optimistic about the company. Relative to its peers and sector, News Corp. has been a weak year-to-date performer. WAIT AND SEE what News Corp. does this quarter.
- [By Jon Friedman]
The new News Corp. (NASDAQ: NWSA ) has a lot to prove as a stand-alone company.
This News Corp. is the product of a split between the former media conglomerate also known as News Corp., which then consisted of one company containing ample entertainment, broadcasting, and print-media assets. When the old News Corp. CEO Rupert Murdoch chose to divide it into two separate companies, with trading commencing on July 1, the new News Corp. inherited the print-journalism assets, including The Wall Street Journal and the�perennially money-bleeding�New York Post, as well as book publisher HarperCollins and Dow Jones (for which I worked, as a media columnist at MarketWatch, from 2007 till early this year).
- [By WALLSTCHEATSHEET]
News Corp. will not only engage in the publishing business as it has announced a spinoff of the entertainment side of the business. The stock was on a strong run towards higher prices. However, its stock price has been cut in half yesterday. Over the last four quarters, earnings and revenue figures have been on the rise which has pleased investors in the company. Relative to its peers and sector, News Corp. has been a weak year-to-date performer. WAIT AND SEE what News Corp. does in coming quarters.
Hot Media Companies To Watch In Right Now: Charter Communications Inc.(CHTR)
Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.
Advisors' Opinion:- [By Rich Bieglmeier]
Investors should view Charter Communications, Inc. (NASDAQ:CHTR) differently, according to Northland Capital Markets. Analyst, Tom Eagan upgraded the cable TV service provider to "Outperform" from "Market Perform" with a $146 price-target ��potential upside of 15% to target.
- [By Sean Williams]
Leading the charge is cable operator Cablevision (NYSE: CVC ) again found itself in the spotlight, up 9.6%, following the completion of its sale of Optimum West to Charter Communications (NASDAQ: CHTR ) for $1.625 billion. While shareholders are likely to be pleased seeing this deal completed, shares are really ramping up in expectation that Charter may make a bid for Cablevision. Rumors have been circulating for a week based on a report from Bloomberg News that Charter may look to make a bid for Time Warner Cable�or Cablevision. My stance remains not to chase rumors higher, so I'd suggest watching Cablevision from the sidelines.
- [By Jon C. Ogg]
If Liberty is able to swallow Sirius, it gives Liberty access to the satellite radio leader’s full free cash flow of about $625 million. That will almost certainly be used in Liberty’s pursuit of Time Warner Cable Inc. (NYSE: TWC). Liberty holds about a�27% stake in Charter Communications Inc. (NASDAQ: CHTR) and has been trying to put together the financing to buy out the much larger Time Warner.
- [By Saumya Vaishampayan and Ben Eisen]
Time Warner Cable Inc. (TWC) ��shares jumped 10%. The Wall Street Journal reported late Thursday that Charter Communications Inc. (CHTR) �was preparing to make a bid for the cable operator. Charter was said to be in talks with at least four banks to line up financing to buy Time Warner, which has a $35 billion market capitalization. Shares of Charter Communications rallied 6.1%.
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