TAKE 120: News Corp Gets Better Ratings than Disney
Thursday, November 01, 2012 - 02:33
Nov. 5 - M&R Capital's Paul DeSisto says the coming News Corp. split and its valuation make it a buy over rival media company Disney.
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Public that there joins me for it takes one's -- few minutes to stocks only one is worth owning. How good -- see it they were gonna talk. News Corp. -- this thing you like News Corp. why. Elect me for the split off of this publishing business. From the rest of the company's medium business people start trading higher multiples more in line with that of Disney. Sixteen PE -- of eleven PE. A fifteen current price -- -- -- -- vs twelve assists for the price that because of that I think a lot of upside. That's the price increase from the 25 -- for the low thirties by the end of next. And terms of Disney isn't something about the company's execution you're not as high on or is it simply the valuation. Why not just collateral valuation they have three dollars and fifty cents were looking for the trading at sixteen times earnings in the low fifties. That's pretty much the high end of its range as he limited upside maybe a couple more dollars per share right now about solace. -- -- on possible threats to its business model only Internet players that are trying to get -- video is -- -- court. Hulu Netflix so that's the stuff. That is something to be concerned about but not right now because it hasn't had any effect peoples who pretty much glued to defeat since it. Yes they are how about revenue going forward you know Disney has those theme parks we've got a bit of a sluggish economy here so does that put it at more risk -- -- They are very dependent upon -- given a five dollar. Per gallon gasoline we've seen California lately and even that's how much tennis they have a different parts of Southern California. The benefits. -- let's look at earnings. Going forward visibility for the spinoff of news or how to those numbers look how they compared it is becoming a little bit more about that we can get two dollars on about News Corp. after this. An offer she did it gets to develop multiple been getting your questions below thirties Disney. Three dollars and fifty cents that have to pay some extra money to redo their Major League Baseball contract. What the for ESPN -- quarter earnings down a bit. -- and I think the 350 times of sixteen multiple real right now -- -- low fifties to. -- -- like I like the book. News -- higher by the 30%. All right. It gets caught with just so great to talk that so much that's Paul's take -- funny ironic that there is that right.
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