Unlike investment banks, for instance, media companies are a warehouse of public information. From box office receipts to Neilsen ratings, it is relatively easy to model their earnings – which is why it is the guidance they give that is truly telling.
CNBC’s Julia Boorstin says Disney (DIS), which has been a great growth story, seems to be slowing. But since the euro is so strong versus the dollar, the company has been benefiting from a huge amount of foreign traffic in its theme parks.
The options market thinks Disney has the highest risk pricing of all the major media companies, Stacey Briere Gilbert says, at around a 4.5 – 5% move around earnings compared to Viacom (VIA) around 2%.
Time Warner (TWX) is a turnaround name investors are looking to, Julia adds. Everyone is looking to see if AOL’s replacement from subscription-based revenue to ad-based revenue is working. Time Warner’s studio arm, Warner Bros., is still an issue, she says.
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Trader disclosure: On July 27th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;Macke Owns (ATVI), (DIS); Najarian Owns ( C),(GS) SSusquehanna Financial Group Is A Market Maker In (GTRC), (ATVI), (AMZN), (ERTS), (INTC), (KYPH), (VMSI); Susquehanna Financial Group Owns More Than 1% Of (BZH); Gilbert Owns Options In (HOT) Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies