As I stated in the beginning, when I first introduced this blog, profits for publicly traded companies are interdependent on the success of its many umbrella companies. Which for this in this bloggers case is not necessarily a good thing. If you haven’t checked your stocks lately, Time Warner Inc. (TWX) is not doing so great. When you the reader and I sat down to discuss buying TWX the stock was at $45.01, and it is now at $44.02. Ouch! But don’t fret analysts suggest that we buy TWX now for a few different reasons. We will discuss, why The Street analysts support buyingTWX we will explore the reasons why Stockpickr supports the future success of TWX, and finally we’ll discuss other options for the skittish investor with “The Walking Dead.”
The Street Wire, a blog on TheStreet.com, gives great detail in why you should buy TWX and I agree with the logic. “Compared to its closing price of one year ago, TWX’s share price has jumped by 38.74%, exceeding the performance of the broader market during that same time frame” (TheStreet.com). On top of the great share price, the debt-to-equity is 0.68 with a quick ratio of 1.11 (pertains to short-term cash flow). The companies P/E (profit/ earnings) ratio is 17.7, the net operating cash flow has gone up and “In addition, TIME WARNER INC has also vastly surpassed the industry average cash flow growth rate of 14.61% All these numbers are promising and if you don’t know what they mean you need to get educated. Ask me for resources if you would like. I encourage engagement and also encourage you to buy. Why? Here are a few more reasons to be confident in TWX.
AMC’s “The Walking Dead”
If we have already forgotten what a powerhouse TWX is lets leave it up to Stockpickr.com to remind us of a few excellent companies under the TWX umbrella of holdings,”The firm owns a portfolio of television networks that include HBO, CNN and TNT, the largest combined film studio in the world in Warner Bros. and New Line Cinema, and a publishing arm that produces print names like People and Time.” I simply state to Stockpickr: You had me at HBO. But wait there is more and I didn’t even realize this, but Stockpickr stated that TWX pays a nice 2.3% dividend. Mainly though, we learn that the ability to share its content between networks will bring more benefits, “The biggest benefit to Time Warner today is the fact that the firm is able to share content between units to earn a higher return on every title in its library” (Stockpickr, 10/22/12).
I understand that you invested your children’s college fund on ‘Argo’ but my only advice is: Buy More. But if you don’t want to take a chance on TWX that’s your choice. If you haven’t heard about the recent success about the TV series on AMC entitled “The Walking Dead” it is worth giving a once over, “This year opened with about 11 million viewers (15.2 million overall), reports The Washington Post. And that was without help from DISH Network” (Daily Finance, 10/22/12). The DISH Network is such an important part of this statement because as of Sunday, October 21, 2012 AMC’s “The Walking Dead” was viewable to DISH Network subscribers which will brings the numbers in viewership up. So if you feel like you are the walking dead because of the slide in the TWX stock, then I have two pieces of advice. First, if you are going to panic during the marathon, just remember it’s not a sprint, so stop being a nervous Ned/ Nelly. Secondly, if you’re looking to diversify and buy into a few more options, then take a peek at the Daily Finance article posted here about the up and coming success of “The Walking Dead.”
Bottom line, do not give up on TWX, we invested for a month, and those the rules I have set in place and I am a man of my word, so I’m not quitting Ben Affleck and his ‘Argo.’ I’m not worried though, because reliable, knowledgeable sources like TheStreet.com, Stockpickr.com, and Daily Finance give us news, options, and awareness.
Accredited Sources:
- ‘Argo’ earnings calendar via BoxOfficeMojo.com retrieved on 10/23/12 from:
http://boxofficemojo.com/movies/?page=daily&id=argo.htm
- “The Walking Dead” picture via Daily Finance retrieved 10/23/12 from:
http://www.dailyfinance.com/2012/10/22/investing-profit-walking-dead-zombie-apocalypse/
- Link to Cramer’s Portfolio retrieved 10/23/12 from:
http://secure2.thestreet.com/cap/prm.do?OID=019175 via http://www.thestreet.com/story/11742310/1/time-warner-inc-stock-buy-recommendation-reiterated-twx.html?puc=aol&cm_ven=aol&source=motleyfool
- The Street Wire. Blog via TheStreet.com. Time warner inc stock buy recommendation reiterated (TWX). Retrieved on 10/23/12 from:
- Elmerraji, J. Blog via Stockpickr.com. 5 rocket stocks ready to rally this week – views. Retrieved on 10/23/12 from:
Billy Simpson 