|Shawn Michaels |
A highflier like Google
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 - Get Report), 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), is an American success story like McDonald's (WWE). 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 - Get Report) 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 - Get Report), 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. The underdog story of Wrestlemania 22 is Rey Mysterio. Just like Krispy Kreme ( KKD) he has been written off. Krispy Kreme is a story of a great product with bad decision-making by prior management. Krispy Kreme is a true international growth story, just like Rey could be. However, without financials until the end of April, it is a shot in the dark. Rey's opponent is Kurt Angle, anOlympic gold medalist. Kurt is like Wal-Mart ( WMT - Get Report), a true blue-chip American. Wal-Mart is the real 500-pound gorilla. With a potential bank charter looming, Wal-Mart could be a huge growth story again. Either way, it is a great buy right here. Wal-Mart is greatly expanding its presence in China, where future growth will be high. Wal-Mart has a track record of nothing but success; that success will continue.
|Kurt Angle |
Blue-chip, like Wal-Mart
Think Exxon Mobil