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TheStreet Open House

Five Buys Near 52-Week Highs

TWX Chart TWX data by YCharts

Time Warner (TWX) Time Warner operates as a media and entertainment company in the U.S. and internationally. It operates in three segments: Networks, film and TV entertainment, and publishing. Time Warner trades an average of 5.4 million shares per day with a market cap of $47 billion.

52 Week High:$49.96

Beta: 1.25

Price to Book: 1.55

I am suggesting that investors wait for a retracement in price in several tickers in this article, and Time Warner is included. On the daily chart, Time Warner is extended and with an oversized risk of downward price pressure.

I don't know that Time Warner will retrace, but I am guided by past results in similar chart patterns. Look for support near $47 as an entry price. TheStreet reiterated its buy recommendation, and you can read the article here.

Time Warner offers an attractive yield and has a recent history of raising the dividend in February. With a payout ratio less than 40%, there doesn't appear to be a reason why shareholders can't cautiously be optimistic for another bump in the dividend rate.

On a yearly basis, the dividend is now $1.04 per share for a yield of 2.1%. As I wrote earlier, I would not chase this one, and the round number $50 is likely to be tested for a while. The small amount of short interest is 2.1%. TWX Revenue Per Share TTM Chart TWX Revenue Per Share TTM data by YCharts

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