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

My 8-Year Old's Portfolio is Kicking Your Portfolio's...

KFT occupies a tried-and-true, steady-as-she-goes one-third of the portfolio. We could have gone with a whole host of consumer names here, but chose Kraft because of the dividend, my daughter's familiarity with their products, our belief that they have staying power, and my endorsement of their decision to split into two companies.

We chose not to diversify the remaining two-thirds, going with two media companies. Within the space, however, we selected two somewhat different firms.

I have written quite a bit about MSG and VIAB.

In a nutshell, as a largely regional entity, MSG could not be better positioned. It has prime sports teams, prime venues, a stable of solid sports networks and a music channel on cable that actually plays music. It is enhancing the experience at Madison Square Garden Arena, which will drive some revenue. It just purchased the old Forum in Southern California (I think MSG has big, long-term synergistic plans here). And it's ready to put some cash into driving Fuse, the music channel, hard.

In some respects, Viacom is everything MSG is not. It has no sports programming, which is a killer in this day and age of on-demand, time-no-longer-matters IP streaming. Its music channels that rarely play music. A Viacom-MSG marriage makes all the sense in the world.

I love owning both as standalones. And as a purist, prefer to see MSG remain independent. However, I expect an increasing amount of partnership and consolidation in the media space.

MSG represents a juicy target for bigger companies. Viacom needs to do something to fill its gaping holes. That said, in their present forms, both companies still have ample room to grow. M&A or some type of collaboration only sweetens the deal of being long these two stocks.

At the time of publication, the author was long P. He is long KFT, MSG and VIAB in a custodial account he manages for his minor child.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Rocco Pendola is a private investor with nearly 20 years experience in various forms of media, ranging from radio to print. His work has appeared in academic journals as well as dozens of online and offline publications. He uses his broad experience to help inform his coverage of the stock market, primarily in the technology, Internet and new media spaces. He has taken a long-term approach to investing, focusing on dividend-paying stocks, since he opened his first account as a teenager. Pendola, 37, is based in Santa Monica, Calif., where he lives with his wife and child.
2 of 2

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
AAPL $93.74 0.00%
MSG $156.98 0.00%
P $9.93 0.00%
VIAB $40.90 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs