Netflix, Sirius Are Media Stocks to Sell

NEW YORK (TheStreet) -- As I pointed out in a recent TheStreet article, I relish market pullbacks. When the market corrects, it never fails that stocks like Apple ( AAPL) and ( AMZN) lead most of the ensuing rallies. And that's because they're strong companies well-positioned in multiple spaces with the ability to rapidly grow revenues for the foreseeable future.

With companies like Amazon and, to a lesser extent, Apple, you almost have to ignore near-term pressure and uncertainty to focus on the future. AMZN sports a lofty valuation for the same reason AAPL is on a parabolic move up: Investors have confidence in each company's ability to execute going forward.

I follow the media space more closely than any other. I consider Apple and Amazon part of that landscape; in fact, they dictate the on-demand, multi-platform future that continues to evolve in both audio and video entertainment. What's really great about these two companies is that they rule multiple sectors. You can call them leaders in tech, Internet, retail, e-commerce, consumer products as well as new media.

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In future articles, I will focus on the companies I consider solid second- and third-tier selections to upper-echelon stocks like AAPL and AMZN. Companies like Disney ( DIS), Time Warner ( TWX), Rogers Communications ( RCI) and Bell Canada ( BCE) sit on the second tier as always-innovative, still-growing and dividend-paying stocks. More speculative plays, such as Pandora ( P) and Madison Square Garden ( MSG) make up the third tier of media leaders. Each company on this list scores high in one or more of the following categories:

¿ Massive and/or rapidly growing revenues (all of them)

¿ Multiple, diverse streams of revenue (DIS, TWX, RCI, BCE, MSG)

¿ Multi-platform delivery of premium content (all of them)

¿ Direct control over premium content (DIS, TWX, RCI, BCE, MSG)

¿ Ubiquity (all of them, with MSG on a regional basis)

With the exception of DIS, I am long each stock on that list. I scale into them on a regular basis. I step up those buys on weakness. We'll save a deeper look into my rationale for each position for a later date. However, as I detail my bearishness for the two media stocks to sell, it will start to become clear why I like the aforementioned names.

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