Saturday, February 7, 2015

"Time Warner Inc., (Symbol, TWX), has been spinning out non-strategic assets for years. What you have left now is the Filet Mignon of prime media properties"

Dow Jones Industrial Average 17,416.85 (UP) Week ending 01-30-2015
Dow Jones Industrial Average 17,824.00  (UP) Week ending 02-06-2015

Time Warner Inc. (Symbol TWX, $80.38) has been on a mission to hone its assets down to the very best of  media content. Time Warner the 2nd largest media company in the world is essentially made up of Turner Broadcasting, HBO, and Warner Brothers Entertainment's, 3 divisions. 
 The company has a PEG Ratio of 1.38 and a Return on Equity of 16.20%. The current PE on the company is 17.4 It also sports a Dividend yield of 1.6%.   The company will report earnings this week on 2/11/2015.

Speaking of earnings, the EPS growth last quarter was 34%. The EPS % gain for the year is  14%. The 3-5 year growth rate is 14.8%.  Earnings for 2015 are projected at $4.10 per share and for 2016 are looking like $4.66 per share.

Analysts love the stock with 22 Buy recommendations, 3 Outperform, and 8 Hold. The company operate at a 72.50% Gross Margin. Content is King!. Insiders purchasing is all positive.  

What about the price of the stock? In 3 years it has moved from $35.00 per share to $80.00 per share. The One year change in the stock TTM, (Trailing 12 months) has been 31.20 % and the 3 year Total return has been 111.69%.   
This is a good long term investment to add to your portfolio. As always buy in small and build a position over time. I also like content providers Disney, (Symbol DIS),  and LionsGate Entertainment, (Symbol LGF), which is a little higher beta, (more speculative), in the media content provider area.  

Freewilly says, to quote a famous Warner Bros. Pig and Duck, "That's All Folks!"


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