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Family Business Trade

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Published: Tuesday, 6 May 2008 | 6:22 PM ET
Lee Brodie By:

Producer

You can't pick your family, but you can pick your stocks. And when it comes to investing, buying on bloodlines can leave you in the red.

Just look at the Dolan's at Cablevision , or the Sulzbergers at the New York Times or the Fords at… well… Ford ! Corporate America has enough family dysfunction to rival any storyline on “Days of our Lives.”

Whether they feud over the future or pout about the paper, family owned firms seem to find themselves fighting like… well… Cain and Abel.

There are exceptions of course. Look as the success of the McMahons at World Wrestling Entertainment and the Roberts at Comcast . Also worth noting are families such as the Wrigley’s and even Dow Jones’ Bancroft family who didn’t allow long standing quarrels to sideline a value-creating deal.

It’s really a matter of the personalities at play. So, how do you separate the family failures from the family jewels?

Jeff Macke looks for 3 things.

* Undiluted Gene Pool
* Alignment With Shareholder Interest
* Non-Family Bench Strength

Jeff, what’s the trade?

I see a buying opportunities in Ford (F) and World Wrestling Entertainment (WWE), Macke says.

Or look at Anheuser-Busch Companies , adds Pete Najarians.

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Trader disclosure: On May 6, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (C), (GS), (INTC), (MSFT), (NUE), (BTU), (AGU); Najarian Owns (AAPL), (TSO), (XLF); Najarian Owns (BSC) Calls, (BUD) Calls, (CSCO) Calls, (EP) Calls, (MSFT) Calls, (YHOO) Calls, ( C) Calls; Macke Owns (DIS), (INTC), (MSFT); Finerman Owns (GS); Finerman's Firm And Finerman Own (HD), (KALU); Finerman's Firm Owns (MSFT), (NYX), (PLCE), (TSO), (VLO), (JCP), (AEO); Finerman's Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman's Firm Is Short The British Pound; Charles Schwab Is A Sponsor Of "Fast Money"; WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC

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You can't pick your family, but you can pick your stocks. When you’re buying along bloodlines how can you separate the black sheep from the family jewels?
  Price   Change %Change
ABI ---
CMCSA ---
CVC ---
F ---
NYT ---
WWE ---

   
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