JBL: Investle Mania

Shawn Michaels A highflier like Google

As a child I used to watch wrestling in Texas with my grandfather, dreaming of the day I would be a champion. Last year at Wrestlemania 21, in the most purchased pay-per-view in history, I lost the championship to John Cena. This Sunday at Wrestlemania 22, I have a chance to win a championship back from Chris Benoit.

Now I know it may be crazy to handicap a pro wrestling event, but for those of you who are unfamiliar with our product, I will put it in terms that people from Wall Street can understand.

One of the premier matchups at Wrestlemania 22 is Vince McMahon vs. Shawn Michaels. Shawn is a lot like Google (GOOG Quote), a real highflier who is willing to take a bunch of risks. Google has no forward guidance for the stock, so it is really a stock that is hard to put a valuation on. Most highfliers have a lot of downside risk; Google is a stock that I couldn't stomach to own. However, just like Shawn, it is fun to watch.

Vince McMahon Proven, like McDonald's

Vince, a co-founder of World Wrestling Entertainment (WWE Quote), is an American success story like McDonald's (WWE Quote). McDonald's is a company that, like Vince, has had to reinvent itself a few times, but it is working. McDonald's has $4.34 billion in operating cash flow and over $4 billion in cash. With a market multiple of around 16, this is a proven company and a stock I would want to own.

My prediction: Shawn may fly higher on Sunday, but I am staying with the proven global company. I take McDonald's over Google any day.

The Undertaker is undefeated in 13 Wresltemania matches. Like Goldman Sachs (GS Quote) he's a stock you want to own. Goldman just had blowout earnings; with fixed-income, equities and mergers all going strong simultaneously, this is one of the best companies in the world to own. The only thing more ridiculous than the low P/E multiple of around 10 is the ridiculously low estimate for future numbers. The analysts were wrong before, and they are wrong now. It's hard to even talk about Goldman's numbers, because they read like something out of the sports page, but just like Undertaker they are real.

Undertaker's opponent is Mark Henry, who is legitimately the world's strongest man. However, just like GM (GM Quote), Henry has too big a hill to climb. GM is going bust. Even if it manages to pay off its health care and pension benefits, it will have no money left over for R&D. GM has dug itself a hole, and it will not be able to climb out of it.

Prediction: GM is a former strongman that has met its match; I go with Goldman (and the Undertaker) any day of the week. ...