This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EPL Soccer to NBC: Buy Comcast, News Corp, Other Big Media

NEW YORK ( TheStreet) -- For well over a year now, I've beat the drum on big media stocks.

I recently took profits on three names: Time Warner (TWX - Get Report), Rogers Communications (RCI) and BCE, Inc. (BCE). TWX Chart TWX data by YCharts

I am about to sell the shares of Viacom (VIAB) I hold long in my daughter's custodial account for a, presumably, double-digit profit.

More than simple profit taking drives the VIAB decision. I'm concerned about the company.

We know ratings at Nickelodeon have been hurting for a while. Some blame SpongeBob; others the convenience of KidsTV on Netflix (NFLX).

While it's likely a mix of both, something bigger looms. A larger-than-the-sum-of-its-parts trend.

From The Wall Street Journal comes word that it's not just Nick. Numbers at MTV and Comedy Central are down as well.

In fairness, the WSJ reports that Time Warner and Comcast (CMCSA - Get Report) have seen similar ratings' declines at TBS and USA Network, respectively.

Chalk these decreases up to several very real reasons -- warm weather late in the year in much of the country, impact of streaming/on-demand, the home stretch of the baseball season and the start of football. These things all play a role, however, as I see it, it's the final two sports-related explanations that tell the tale at Viacom.

Simply stated, Viacom doesn't have meaningful sports programming to speak of. It's not like it's filmed entertainment division (Paramount) has been picking up the slack for lackluster network performance.

We'll see how the most recent quarter plays out (Viacom reports on Nov. 15), but for the third quarter of 2012, global revenue tanked 14%. The company blames a strong third quarter in 2011, fueled by beneficial timing of programming and new releases, for the shortfall. I'm not quite sure I buy it.

A stock I am now accumulating, News Corp (NWSA - Get Report), performed well and appears set to move higher if you dig deeper into its wimpy 1% year-over-year revenue increase for the fiscal fourth quarter, which ended in June.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
VIA.B $0.00 0.00%
CMCSA $60.89 -0.10%
NWSA $12.15 -0.65%
TWX $74.80 1.58%
AAPL $94.01 -1.20%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs