Top Media Stocks To Watch For 2015

Top Media Stocks To Watch For 2015: Discovery Communications Inc(DISCA)

Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.

Advisors' Opinion:

• [By Vera Yuan]

  Dear Fellow Shareholder: The U.S. economy con! tinues to gradually expand, building on the 5+ year recovery from the Great Recession. Employment levels are improving, though progress has been slower than expected. Inflation, for now, remains subdued. As signaled and on cue, the Fed has been weaning the economy (and investors) off of the extraordinary 'quantitative easing' stimulus. Investors have generally shrugged off world events that might otherwise cause high anxiety (ISIS and the Middle East, Russia and Ukraine, etc.). As attention now turns to when the Fed will raise short-term interest rates, it seems plausible that volatility may intensify as the stimulus security blanket is removed. In the meantime, companies are taking advantage of the artificially low interest rate environment and sanguine investor sentiment. Merger activity remains robust, fueled by cheap and readily available credit. The IPO market has been very active, headlined by the successful Alibaba offering in September. Corporate treasurers continue to issue loads of debt on attractive terms, locking in generationally low interest rates for long terms. While these conditions will not last forever, they have helped opportunistic managers accelerate equity value growth at many companies.Investment Commentary and Outlook After three years of seemingly non-stop gains, the stock market took a pause in the third quarter. While most large cap indices eked out modest positive returns, the broader investing waters were far less placid. Small cap stocks sold off as the Russell 2000 declined more than 7% during the quarter. Energy stocks, both large and small, fell materially as investors worried about too much oil and gas supply coming online in North America (what a difference a decade makes). High yield bonds wobbled briefly in July, then again in September. Increasingly, investors are not treating all securities the same, and as stock pickers we welcome this development. Our equity funds' resu

• [By WWW.DAILYFINANCE.COM]

  Evan Agostini, Invision/APCBS preside! nt and CE! O Leslie Moonves ranked No. 2 on a list of highest paid CEOs. LOS ANGELES -- Once again, media company CEOs are among the highest paid executives in the nation, occupying six of the top 10 earning spots, according to an Associated Press/Equilar study. Compensation experts say a variety of factors are at play, including the gain in media stocks, the intangible value of talent in a hit-or-miss business, the control of shareholder power in very few hands, and the decline of the financial sector. Stock Outperformers Outsized stock growth boosts the value of stock and option grants. Media companies' shares have rebounded strongly since the 2008 recession, mainly because advertising spending grows in tandem with a growing economy. That means higher-priced ads and higher-priced execs. Stocks of the six media companies on the list all outperformed the Standard & Poor's 500 index (^GPSC), which grew 128 percent in the five years through December 2013, according to FactSet. CBS (CBS) shares grew a whopping 699 percent in that period; Discovery Communications (DISCA) went up 539 percent; Viacom (VIA) rose 377 percent; Walt Disney (DIS) rose 250 percent; Time Warner (TWX) climbed 259 percent and Comcast (CMCSA) grew 223 percent. "If shareholders are happy they don't care how much a person makes," said Paul Dorf, managing director of consulting firm Compensation Resources. "When they complain most is when the market doesn't do well and their stock is going down the tubes." Talent Quotient Making it big in media means generating hits. And while top executives may not be hands-on with every decision, they are where the buck stops. Take Disney's animated blockbuster "Frozen," which grossed $1.2 billion at box offices worldwide. While Disney CEO Bob Iger didn't make the movie, he did orchestrate Disney's $7.4 billion acquisition of Pixar in 2006, which brought in talented executives to help reform Disney's faltering a

• [By Ben Levisohn]

  Another day, another market spent looking for di! rection, ! even as  stocks drop thanks to big declines in American International Group (AIG), Merck (MRK),  Discover Communications (DISCA), Target (TGT) and Twitter (TWTR).

• [By Patricio Kehoe]

  Hasbro, Inc. (HAS) has been on the radar of many investment gurus like Paul Tudor Jones (Trades, Portfolio) and John Hussman (Trades, Portfolio) for some time now, given its position as the second largest toy manufacturer in the industry, only outranked by Mattel, Inc. (MAT). But the company's first quarter earnings report showed that it could possibly outperform industry giant and rival Mattel in terms of growth, as Europe and Latin America registered 8% and 17% growth respectively, while Mattel saw declines in the same regions. Furthermore, quarterly earnings were driven mainly by the girls' category, which sported a 20% increase in demand for My Little Pony, Equestria Girls, and Nerf Rebelle products. So, with profitability on the right track, what can investors expect from this industry player in the long term?Licensing agreements and emerging market growthAlthough Hasbro's quarterly earnings were boosted by the girls' toy category, while the boys' segment s howed merely 2% growth, fiscal 2014 should balance out the segments when the Transformers and Spiderman films launch in the second quarter. Owning a licensing agreement for Marvel has also helped boost results in the domestic market and Canada, as the recent launch of "Captain America: The Winter Soldier" was a box office hit, thereby boosting sales of the Captain America action figure in the U.S. Moreover, the firm has been clever to focus its energy some years ago on the digital and entertainment business, giving it a competitive advantage over industry rivals. In fact, while Hasbro's relationship with Activision Blizzard, Inc. (ATVI) has been significant in positioning the firm in the digital market, its joint venture with Discovery Communications Inc. (DISCA) – The Hub – has helped generate very strong brand loy! alty, as ! well as new revenue streams.Furthermore, management has made a point of increasing its stewardship of shareholders via a dividend yield of near ly 3%, as well as its

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