Published: October 23, 2015
Discovery is a niche content producer with a focus on non-fiction programming that is popular across cultures and countries. Its business model is unique in that it allows Discovery to leverage content produced for a given market on a global scale. Additionally, unlike many other media companies ...
Published: May 22, 2015
Overvalued, levered cable operator on an acquisition spree with no strategic focus in an industry with multiple headwinds. Street is giving management too much credit due to consolidation.
Published: May 08, 2015
Investor in FOX can expect at least annual returns in the high teens through the end of the decade. The $80 price target present an estimated fair value of the shares 5 years from now. The returns is driven by at least a mid-teen net income growth combined with the return of excess cash to shareh...
We don’t remember many newspaper executives in the mid‐‘90s insisting their businesses were about to crater. We suspect that several hundred years ago, scribes thought the demand for handwritten books would continue to last indefinitely and that the whole printing press thing wasn’t really a thre...
Published: June 19, 2014
LBTY is a great way to play the theme that broadband access and speeds are going to become more and more important in the future. The desire for faster speeds is increasing at a rapid rate, predominantly driven by online downloads, OTT offerings, and more devices in the households. LBTY is well p...
Published: April 07, 2014
These rapidly increasing costs are primarily due to the licensing fees required to maintain Netflix's expansive streaming content library. Netflix is in constant content-bidding wars with a number of other big name companies such as Amazon (AMZN), Apple (AAPL), Google (GOOG), and Outerwall (OUTR)...
Published: February 07, 2014
With established brands that enjoy strong consumer recognition, Discovery's channels have become "go to" venues for nonfiction content. The company has kept fully distributed channels such as Discovery Channel and TLC fresh by continuously investing in new programming and updating existing conten...
Published: January 02, 2014
DirecTV's current valuation at 6.5x EV/EBITDA and 10x forward P/E is too pessimistic considering the potential of a US Cable M&A/consolidation trend, DTV's core advantages, aggressive buybacks and continued growth in Latin America/US. There is also a valuation gap to US cable peers which I think ...
Published: February 15, 2013
The shares have done well, but lagged some other major media and entertainment stocks over the past six months as the company endured a period of slow earnings growth. I believe the current quarter will flip the earnings trajectory and the stock will move higher with earnings and modest multiple ...
Published: January 24, 2013
Given the major headline risk that everyone is focused on, I really believe that the chances are high for some good unexpected surprises: a couple of new hit shows, a new streaming deal or partnership that will significantly accrue down to bottom line, or perhaps an acquisition offer.
Published: December 18, 2012
The dramatic and accelerating evolution of technology is, however, quickly turning the prospects of investing in a historically great business into something more akin to sleeping on top of a ticking time bomb. You don’t know when it’s going to go off, but sooner or later, it will. Owners of thes...
Published: December 13, 2012
We estimated that this current year (FYE June 2013) net additions will be approximately 50k and will turn negative from next year. There are 2 main reasons for this. First of all, we think the UK DTH market is very mature and near saturation. The second, and more important, reason is that competi...
Published: September 28, 2012
No industrial logic supports the continuation of CRWN as an independent company (or, technically, an affiliate of Hallmark Cards, Inc.). A sale of the Company to a larger cable programmer would result in immediate and significant cost savings as well as future revenue enhancements, value that sho...
Published: August 16, 2012
What makes DreamWorks unique is its ability to increase its earnings power by leveraging its growing library. Every year that passes will mean that DreamWorks’ library of content will grow by 2-3 movies. And every year that passes will mean the margins generated from that revenue will increase as...