Earnings season turns the spotlight on Time Warner, Viacomand other big media names next week. How should you trade it?
Anthony DiClemente, Lehman Bros. Media Analyst joins the panel for this conversation. Following is a summary of his main points.
In media I like the cable networks best, explains DiClemente. I think they’re nearly immune to local advertising slowdowns and they also generate revenue from affiliate fees. Here’s a break down.
Their cable networks (which include MTV, VH1, Nickelodeon and more) should help Viacom sustain earnings momentum, says DiClemente.
I expect this company to outperform, says DiClemente. The writer's strike created a bit of a shift in viewing habits and Discovery probably benefited. Also they have a lot of high def content.
Disney seems properly valued to me, DiClemente says. Expectations for a solid quarter are built into the stock. And I have some concerns about their theme park traffic heading into the summer.
I think CBS is too tethered to radio, says DiClemente. And on the TV side their shows have been lousy. Their business presents a lot of questions.
What’s the bottom line?
Look at Discovery, DiClemente counsels.
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Trader disclosure: On Apr. 25, 2008, 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 (INTC), (MSFT), (DIS), (ATVI), (HAS); Najarian Owns (AAPL), (TSO), (XLF), (YHOO); Najarian Owns (CHK) Calls, (MSFT) Calls, (POT) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (MO), (GE), (MSFT), (PM), (SUN), (TSO), (VLO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman's Firm And Finerman Own (KALU); Finerman's Firm Owns (YHOO) Call Spreads; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"
Lehman Brothers. And/Or Affiliate Has Received Compensation For Investment Banking Services From (TWX), (VIA), (DIS),(CBS), (NWS) In The Past 12 Months; Leman Brothers Has Received Non-Investment Banking Compensation From (TWX), (DIS), (CBS) Within The Last 12 Months; (TWX), (VIA), (DIS), (CBS), (NWS) Are Or During Past 12 Months Have Been Investment Banking Clients Of Lehman Brothers And/Or Affiliate; (TWX), (DIS), (CBS) Are Or During Last 12 Months Have Been Non-Investment Banking Clients (Securities Related Services) Of Lehman Brothers.