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Viacom(VIA.B) is a new position that Paulson & Co. initiated last quarter. The hedge fund manager dipped its toe into the stock, buying 1 million shares of Viacom in the last quarter. That's a $47 million position at current price levels.
Viacom owns a portfolio of cable networks that includes MTV, Comedy Central and Nickelodeon as well as Paramount, a motion picture studio with a massive vault of film properties. The firm's positioning skews younger, a valuable choice for the media company in that it can offer advertisers unfettered access to the lucrative under-30 demographic. Investors shouldn't overlook Viacom's intellectual property either; content licensing deals could eventually be a much bigger source of revenues for the firm.
>>5 Stocks Set to Soar on Bullish Earnings
The firm's overt war with
DirecTV (DTV) has been putting plenty of eyes on shares, but it's likely to get resolved sooner rather than later.
From a financial standpoint, Viacom is in solid shape. The firm has ample liquidity on its balance sheet and a more than manageable debt load, factors that help to contribute to a reasonably generous 2.34% dividend yield right now. From a technical standpoint, a buy for VIAB is still looking a bit premature -- I'd recommend buying Viacom if it can hold a price above $48.75.
Viacom shows up on a recent list of
5 Stocks to Buy and Hold for True Value.