Will HSN Be Ensnared in Liberty's Web?
Despite the performance, Liberty Capital shares were also selling off, recently down $1.62, or 1.3%, to $121.29. Roge says the trading action was more connected to a broader selloff in the stock market than to a disappointment in the company's third-quarter results.
"Starz Entertainment, their main operating company on the capital side, had a blowout quarter," says Roge. "Revenue was up dramatically and operating income was up dramatically. All around, it's an impressive performance and a great business."
Meanwhile, Roge is optimistic about Liberty's recently announced plan to split its capital business in half, with one side retaining the title of Liberty Media Capital and the other side becoming Liberty Media Entertainment.
The split will take place after Liberty's pending deal with Rupert Murdoch's News Corp. (NWS-A) closes. Malone last year agreed to swap his stake in News Corp. for News Corp.'s controlling stake in DirecTV (DTV), the satellite TV giant.Liberty's DirecTV holding will become the main component of the capital side of its business, along with its cable holdings, while Starz and other assets will comprise the entertainment side. "I'd love to own both of them," says Roge. "Both have very good growth prospects, and the break-up will only add to their stock prices over time. We'll be a buyer of both companies going forward at the right price."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV