10 Best Media Stocks To Watch For 2015

LONDON -- In the latest edition of this long-running story, it has been suggested that�Vodafone� (LSE: VOD  ) (NASDAQ: VOD  ) could use a substantial amount of the money it would receive from selling its stake in Verizon Wireless to fund a takeover of�Liberty Global� (NASDAQ: LBTYA  ) .

Analysts at Citigroup have declared that an acquisition would be both within Vodafone's reach, and also align with CEO�Vittorio Colao's long-term strategy of the company becoming a one-stop shop by offering Internet and television services to customers on its existing mobile network.

Citigroup commented:

For Vodafone, Liberty Global could have strategic advantages giving it a strong portfolio of northern European cable assets, rebalancing the group away from Southern Europe and providing it with a high speed broadband offering, cost synergy, an upgrade path for its own broadband customers and network backhaul options.

Liberty is currently negotiating a purchase of�Virgin Media, which would instantly offer Vodafone a television service in the U.K. should it acquire the U.S. cable and telecoms company.�

10 Best Building Product Stocks To Buy For 2016: Charter Communications Inc.(CHTR)

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Jonathan Berr]

  Rumors that Malone will make a bid for Time Warner Cable by the end of the year caused shares of the New York-based company to jump about 3% in trading last Friday. It also rose briefly Monday after Deutsche Bank analyst Brian Russo raised his rating on the stock to a “buy,” saying a merger with Charter Communications (CHTR) is “more likely than not.” Time Warner has so far rebuffed Malone’s overtures, according to media reports.

• [By Harold L. Vogel]

  For cable networks and distributors, first admire the long-term pricing power for cable services (shown in the chart below). Price increases have far exceeded the rate of gain of the Consumer Price Index (CPI) for decades and thereby supported the stock prices and earnings growth of the entire industry (even though some companies such as Charter (CHTR) stumbled into bankruptcy even with this pricing wind at their backs).

10 Best Media Stocks To Watch For 2015: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Reuters]

  Cassandra Hubbart, AOL NEW YORK -- Hulu has failed to persuade a federal judge to dismiss a lawsuit accusing the video streaming service of illegally sharing users' viewing history with Facebook (FB) and business metrics company ComScore (SCOR) U.S. Magistrate Judge Laurel Beeler in San Francisco on Friday rejected Hulu's argument that viewers needed to show actual injury to recover damages, even if they qualified as "aggrieved" persons under a 1988 federal law protecting the privacy of video renters. That law, the Video Privacy Protection Act, was adopted after a newspaper in 1987 published an article about movies that the Supreme Court nominee Robert Bork had rented. Hulu had argued that the law "was not adopted to impose multibillion dollar liability on the transmission of anonymous data where no one suffers any actual injury." Beeler, however, concluded that "the statute requires only injury in the form of a wrongful disclosure" before damages might be available. She didn't rule on the merits of the case. Hulu is a joint venture owned by Comcast's (CMCSA) NBCUniversal, 21st Century Fox's (FOX) Fox Broadcasting, and Walt Disney's (DIS) ABC. Chief Executive Officer Mike Hopkins on Dec. 18 said Hulu will post $1 billion of revenue in 2013, up from $695 million in 2012. The lawsuit seeks class-action status on behalf of Hulu users nationwide. It was brought by several people in California, Illinois and New York seeking damages of at least $2,500 per violation, plus punitive damages and other sums. These plaintiffs claimed that Hulu let third parties engaged in marketing, advertising, and social networking track their video choices without permission. They claimed that Hulu sent such information to Scorecard Research, a comScore market research unit, and sent "Facebook IDs that linked their video choices to personally identifiable Facebook registration information." Hulu didn't immediately respond on Monday to a request for comment. Its lawyer Robert

• [By CNBC]

  Andrew Harrer/Bloomberg via Getty Images Time Warner Cable's flirtation with potential merger suitors may include Comcast, which is seeking advice on possible regulatory hurdles if it should pursue a bid, sources told CNBC on Friday. Comcast (CMCSA) (CMCSK), the parent company of CNBC, is not in active discussions on deal terms with Time Warner Cable (TWC), these sources say, but is asking for guidance on antitrust and telecommunications-related issues. According to people familiar with the matter, TWC has made it clear that if it should sell itself, Comcast would be its preferred buyer. These people add that Comcast has been quietly mulling a merger with TWC for some time. The cable operator is on the verge of a bid from Charter Communications (CHTR), according to The Wall Street Journal, which said Charter is near an agreement with banks for the funds to make that offer. Analysts, however, say Time Warner's needs may be better suited with Comcast. "The synergies are very real, and Comcast would be a better fit," said Craig Moffett, founder and senior analyst at MoffettNathanson. He said that while the Department of Justice's anti-trust requirements may not pose an insurmountable challenge, the more stringent litmus test might come from the Federal Communications Commission.

• [By Adam Levy]

  Plepler said there are 10 million to 15 million broadband-only households in the U.S. that currently have no way of accessing HBO legally. This has led to an increasing number of password sharers and a ridiculous amount of piracy. But will going over the top increase the number of broadband-only households, striking a deathblow for pay-TV operators like AT&T (NYSE: T  ) and Comcast (NASDAQ: CMCSA  ) ?

10 Best Media Stocks To Watch For 2015: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Advisors' Opinion:

• [By Jon C. Ogg]

  The value of Time Warner Cable Inc. (NYSE: TWC) is one which has been up for grabs for some time now. If Bloomberg TV is reliable for getting a scoop here, then the value may have to be far higher in order for the cable company to be acquired. Bloomberg just announced that Time Warner has said it would likely accept a buyout offer up in the $150 to $160 per share range. Without confirmation or broader reporting, we would still warn readers to consider this more of a rumor than gospel.

10 Best Media Stocks To Watch For 2015: DISH Network Corporation(DISH)

DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.

Advisors' Opinion:

• [By Dan Caplinger]

  Outside the Dow, the big news came from Sprint Nextel (NYSE: S  ) , which soared more than 13% after DISH Network (NASDAQ: DISH  ) made a competing bid for the company. The $25.5 billion DISH deal would involve Sprint shareholders getting $7 per share in compensation, with more than two-thirds of it coming in cash. Yet Sprint's stock soared above the $7 level, suggesting that investors expect a bidding war between DISH and previous bidder Softbank. Whether such a bidding war will materialize, of course, remains to be seen -- especially if adverse market conditions start to weigh on the overall mergers and acquisitions environment.

10 Best Media Stocks To Watch For 2015: Gannett Co. Inc. (GCI)

Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.

Advisors' Opinion:

• [By Monica Gerson]

  Gannett Co (NYSE: GCI) is expected to report its Q3 earnings at $0.41 per share on revenue of $1.27 billion.

  VMware (NYSE: VMW) is projected to report its Q3 earnings at $0.82 per share on revenue of $1.29 billion.

• [By WilliamBriat]

  Gannett Co., Inc. (NYSE: GCI) is the top newspaper publisher in the U.S.; its flagship paper is USA TODAY. The company also owns 23 television stations and more than 200 papers in the U.K. Gannett Co. provides an annual dividend of 3.3%. During the second quarter, it reported solid broadcasting and digital revenue growth and its fourth consecutive quarter of year-over-year circulation revenue growth.

• [By Mike Deane]

  Early on Monday morning, Gannett (GCI) had its price target raised to $35 from $34 at FBR Capital. The ratings company also affirmed that Gannett is a “Top Pick.”�

  Gannett, a publishing and broadcasting company that operates in the U.S. and the U.K., currently has a price of $29.76, and FBR’s new target suggests an 18% upside.

  FBR analyst William Bird had the following comments about GCI’s PT raise: “Based on our analysis, we estimate that Gannett’s spectrum is worth approximately $2.2 billion, or $9 per share, roughly doubling in value from the�acquisition�of BLC (i.e., pre-deal valuation of ~$1.1 billion). Separately, we are lowering our 2014 EPS estimate by $0.07 to reflect the previously announced sale of three stations to MDP (note: an expected midyear close means that the stations will not be in operating results from January 1, but the proceeds will not be received until midyear). We are increasing our price target to $35 from $34 to reflect shareholder accretion from the sale. We like Gannett’s improving business mix, growth profile, and ability to drive growth with its own propeller through higher retrans, synergies, and potential TV acquisitions.”

  Gannett stock was inactive in pre-market trading. So far this year, the company’s stock is up 0.61%.

• [By Tiernan Ray]

  FBR & Co.‘s�William Bird, who follows the shares of old media dinosaurs�Gannett (GCI), �Meredith�(MDP),�News�(NWSA), and�The New York Times�(NYT), today offers the findings of a survey of 2,041 adults in the U.S. from March 12th to March 17th.

  Bird has an Outperform rating on shares of Gannett, and Market Perform ratings on the other three names.

  The upshot of the survey is that a third of young readers don’t read print papers, and are more and more flocking to online news outlets.

  The survey, conducted with the help of Clear Voice Research LLC, suggests to Bird a “steady structural pressure on print, a tip of the spear demographic problem for print circulation, and slow magazine tablet adoption�� negative as tablets offer a better business model for magazines.”

  More specifically, there is “value destruction” as more and more people trade from print to digital editioins of publications:

  The survey suggests that structural pressure on consumer newspaper readership is a touch above�that of magazines. Over the next year, print newspaper usage is expected to decline a net 5% (i.e.,�6% expect to use more versus 11% who expect to use less). A total of 11% of respondents said they plan to use print newspapers less and 10% said they plan to �use print magazines less. This was exactly offset by the percentage of respondents who said they�plan to consume online newspapers more (11%) and those who plan to consume online magazines�more (10%). With $1 of print ad spend translating to $0.25 in digital, these results are supportive of �continued print-to-digital value destruction.

  Younger readers tend to be more inclined to dump print, says FBR:

  According to our survey, intended print newspaper subscription cancellations total 9.8% over the next 12 months. Notable is that plans to cancel skew heavily toward the below 35 year old demographic. The 18 to 34 demographic reflects

10 Best Media Stocks To Watch For 2015: Cablevision Systems Corporation (CVC)

Cablevision Systems Corporation provides telecommunications and media services. It operates in two segments, Telecommunications Services and Other. The Telecommunications Services segment is involved in television business, including video, high-speed data, and VoIP operations, as well as the provision of commercial data and voice services. The Other segment offers Newsday, a daily newspaper; amNewYork, a free daily newspaper; and Star Community Publishing, a group of weekly shopper publications; and newsday.com and exploreLI.com. This segment also engages in motion picture theatre business, Clearview Cinemas; provision of the News 12 Networks, a regional news programming services; and the MSG Varsity network, a network covering high school sports and activities, and other local programs, as well as cable television advertising. Cablevision Systems Corporation was founded in 1985 and is headquartered in Bethpage, New York.

Advisors' Opinion:

• [By Sean Williams]

  Leading the charge is cable operator Cablevision (NYSE: CVC  ) again found itself in the spotlight, up 9.6%, following the completion of its sale of Optimum West to Charter Communications (NASDAQ: CHTR  ) for $1.625 billion. While shareholders are likely to be pleased seeing this deal completed, shares are really ramping up in expectation that Charter may make a bid for Cablevision. Rumors have been circulating for a week based on a report from Bloomberg News that Charter may look to make a bid for Time Warner Cable�or Cablevision. My stance remains not to chase rumors higher, so I'd suggest watching Cablevision from the sidelines.

• [By Will Ashworth]

  Losing control of the Cablevision (CVC) spinoff will ultimately be better for the Dolans than if they try to go it alone.

  This scenario�� likely a long shot, but I think it makes a lot of sense.

10 Best Media Stocks To Watch For 2015: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:

• [By Ian Wyatt]

  But you don't have to buy them yourself. By simply buying shares of Berkshire Hathaway, you gain access to that diversity�� portfolio of stocks as varied as American Express (AXP), Coca-Cola (NY: KO), DirecTV (DTV), and Wells Fargo (WFC).