Experienced Media Research Analyst Calls Content Creator Viacom a Top Pick for 2013: a Wall Street Transcript Interview with David W. Miller, a Managing Director at Caris & Company

Wall Street Transcript

67 WALL STREET, New York - November 15, 2012 - The Wall Street Transcript has just published its Entertainment, Toys and Games Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Cable Subscription Rates - International Paid Television Growth - Digital Advertisement Trends - Mobile Device Gaming Prospects - Content Quality

Companies include: Lions Gate Entertainment Corp. (LGF), DreamWorks Animation SKG Inc. (DWA), Walt Disney Co. (DIS), Netflix, Inc. (NFLX), TiVo Inc. (TIVO), EchoStar Corp. (SATS), AT&T, Inc. (T), Verizon Communications Inc. (VZ), Time Warner Cable Inc. (TWC), Regal Entertainment Group (RGC), CBS Corporation (CBS), Time Warner Inc. (TWX), Discovery Communications, Inc. (DISCA)

In the following excerpt from the Entertainment, Toys and Games Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Which two or three stocks would you recommend to investors right now, and what do you like about each of them?

MR. Miller: Well, I wish we had spoken six months ago, because Disney was our top pick all year this year. It was a name we upgraded to $33, which was about a year ago, but in October of last year, when the equity markets swooned to the tune of 12%, 13%, and we took advantage of that. We upgraded the stock, and the stock went 40%, and then another 16% after the 40% as an "outperform"-rated name. We've since moved to "neutral" at $50 to $97, and now the stock is at $50. So we feel very good about that call. Again, just as the best case scenario on earnings for fiscal 2013, it's pretty much built in the shares at $53. And I think that's the kind of research we do. That kind of stock-picking ability is what our clients rely on from us as their analysts.

TiVo is definitely a top pick from a valuation standpoint. Right now, I'd call it $9.50 a share. The stock is basically trading at cash across NOLs, plus $3 a share for the base business, which is just a joke. I mean it's a growing business. We're not under any sort of secular threat to value that business at only $3 a share, and it's a huge opportunity for investors in our point of view.

We also like Viacom. We like the valuation, and everything is going really well at the company right now, with the exception of ratings at Nickelodeon and MTV, and we've seen this before at Viacom. Every single time they're in a metric situation or rating shortfall situation at these core networks, they usually find a way out of it. They usually are able to develop programming that gets them out of it. That hasn't happened yet, but our bet is that it will, and that's not yet built into the stock either.

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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