Yahoo Finance has been taken over by Oscar fever. While everyone is watching their favorite actors and actresses strutting the red carpet and making their oh-so-too-long acceptance speeches, we’ll be looking at the studios behind the biggest films in search of some investment possibilities.
Breakout’s Jeff Macke and Breakout regular Jon Najarian put on the penguin suits and broke down some of the studios behind the years most nominated movies.
The Wolf of Wall Street - Viacom (VIA):
Jon Najarian notes that Viacom is a “great stock as well as a very shrewd company. I gotta believe they will reap many prosperous dividends over and over again. That’s before it goes into ancillary dvd and Netflix. I think it’s a home run for them.”
American Hustle - Sony (SNE):
Jeff Macke argues Sony “could not find money if they fell out of a boat in a sea full of cash.” Najarian agrees noting, “there are too many other businesses at Sony...is it tablets, is it phones, what is it over at Sony? SNE is not a clear enough bet. I like ones where you can refine down to an area of media rather than all media including devices so I’d skip Sony.”
Frozen - Disney (DIS):
Macke’s favorite movie (ever??) comes from Disney, “a stock you can never own enough of.” Najarian agrees noting not just their movies, but the theme parks are showing strength too. Perhaps the biggest tailwind for Disney is STILL their purchase of Marvel way back in 2009. Najarian notes that Disney is and will continue to reap the rewards of that purchase from sequels and reboots of popular franchises like Spiderman.
Gravity - Time Warner (TWX):
Najarian says he likes Time Warner for much of the reason he doesn’t like Sony. Specifically they know who they are and are “more of a defined play.” He also notes they simply tend to “bet on good properties.”
Bonus Pick - Allergan (AGN):
With everyone trying to look their best at the Oscars, Macke thinks it might be worth taking a look at Allergan, the makers of Botox, because as he says, “They can give out actor and actress awards and no one can make a facial expression throughout the entire broadcast.”