|Bid||41.59 x 1800|
|Ask||41.70 x 1100|
|Day's Range||41.22 - 43.31|
|52 Week Range||41.22 - 59.56|
|Beta (3Y Monthly)||0.91|
|PE Ratio (TTM)||5.09|
|Earnings Date||Oct 30, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||0.72 (1.66%)|
|1y Target Est||59.24|
Moody's Investors Service (Moody's) affirmed OUTFRONT Media Inc.'s (OUTFRONT) Ba3 corporate family rating (CFR). While debt levels are expected to increase modestly going forward, Moody's projects EBITDA growth will offset the impact on the company's leverage level.
Disney (NYSE:DIS) stock is treading water. Shares now trade around $135, down from as high as $147.15 in late July. The recent earnings miss calls into question the current valuation of Disney stock. But with the launch of Disney+ around the corner, is now the time to buy DIS? Disney stock continues to trade at a premium compared to its peers, but offers material upside in the long-term. Let's take a deep dive and see what's the verdict with Disney stock.Source: Shutterstock Recent Performance of DISDisney announced earnings on Aug. 6. DIS saw earnings per share fall 59% year-over-year. Much of this decline was due to the integration of recent acquisitions 21st Century Fox and Hulu. Excluding these items (amortization and impairment charges on intangible assets), EPS fell only 28%. The integration of these assets offers long-term upside. But in the meantime, integrating these operations is a work-in-progress.21st Century Fox's film division has under-performed. Recent release "Dark Phoenix" was a box office bomb. But Disney's film division continues to be strong. "Avengers: Endgame," "Aladdin" and "Toy Story 4" met expectations. For the third quarter, Disney should see additional strong performance in the film division. Disney's July release of "The Lion King" has already generated over $1.4 billion at the worldwide box office. As I stated in a previous article, the Magic Kingdom continues to be "king of content."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Through Aug. 18, Disney's film distribution arm, Buena Vista, had 37.1% of the box office market share for 2019. This is leaps-and-bounds ahead of number two, Comcast's (NASDAQ:CMCSA) Universal. Universal's year-to-date market share is just 13.8%. Add in 20th Century Fox's box office take, and Disney has more than 40% market share. Theatrical revenue is a small component of today's film business. But it is a strong indicator of the residual value of Disney's film assets. In the more lucrative television and streaming markets, Disney's content is king. This mass appeal will translate well when Disney launches the anticipated Disney+ service later this year. Full Steam Ahead for Disney+Disney's new streaming service goes live in November. Disney+ could disrupt Netflix's (NASDAQ:NFLX) current streaming dominance. As InvestorPlace's James Brumley wrote last week, the company will bundle Disney+, ESPN+ and Hulu in a $12.99/month package, the same price point as Netflix.As I mentioned in my recent Netflix analysis, NFLX's U.S. subscriber base is falling. Content producers are demanding higher licensing fees. In addition, Comcast's NBCUniversal and AT&T's (NYSE:T) WarnerMedia are hoarding properties such as "The Office" and "Friends" for their respective streaming apps. Netflix believes it can counter this with billions invested in original programming. But, Netflix has not yet created a show with the matched popularity of its licensed content. On the other hand, Disney has an impressive library, thanks not just to its own content, but to Fox's extensive film and television library as well.With Disney+ around the corner, should investors nix NFLX and stock up on DIS? Let's take a look at valuation, and see if the opportunity justifies the price. Valuation: Is Opportunity Worth the Current Price?DIS stock currently trades at a forward price-to-earnings ratio of 23. The company's Enterprise Value/EBITDA ratio is 18.7. This is a substantial premium to its big media peers: * AT&T: Forward P/E of 9.7, EV/EBITDA of 8.2 * CBS (NYSE:CBS): Forward P/E of 7, EV/EBITDA of 8.6 * Comcast: Forward P/E of 13, EV/EBITDA of 9.6 * Viacom (NYSE:VIA, NYSE:VIAB): Forward P/E of 6.2, EV/EBITDA of 6.3But as I have mentioned before, comparing DIS stock to its peers is not apples-to-apples. AT&T and Comcast are both telecom companies with attached media businesses. CBS and Viacom (which are going to merge) face headwinds in the age of streaming. But compared to the valuation of NFLX, Disney stock is a clear bargain. NFLX trades at a forward P/E of 92.4, and an EV/EBITDA ratio of 52.8. Compared to NFLX, Disney is the smarter play. With DIS stock, you get a highly profitable media conglomerate with potential upside from streaming. Bottom Line: Wait to Buy DIS StockDisney stock should continue to win in the long term. If the upcoming Disney+ platform performs as expected, the company should see continued growth, even if their legacy cable networks business sees long-term decline. However, there are negative factors to consider. While it trades at a lower valuation than NFLX, Disney shares trade at a substantial premium to its big media peers. A recent claim that Disney overstated its theme park revenue could be a potential risk. But this recent news item is still playing out.The launch of Disney+ is a long-term play. Profitability is years away. In the meantime, a market correction could impact the valuation of DIS stock. Coupled with short-term growing pains, DIS stock could be a bargain sometime down the road. For now, wait on the sidelines as new developments factor into the stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Disney May Disrupt Netflix, But Take Your Time With DIS Stock appeared first on InvestorPlace.
(Bloomberg) -- Islamic State has been battered in Iraq and Syria and declared defeated by President Donald Trump. But the terrorist group and its predecessor, al-Qaeda, are finding ample room to rebuild in other places with weak central governments, officials and analysts warn.As an attack Saturday that killed 63 people in Afghanistan underscored, Islamic State affiliates have proven they can carry out deadly strikes, gain support and establish footholds from Sri Lanka to Nigeria. As its leadership goes deeper underground and spends millions of dollars to expand, Western security officials are looking for new ways to disrupt its operations.“The so-called ISIS caliphate has been destroyed, but the ISIS brand lives on around the world,” Nathan Sales, the State Department’s coordinator for counterterrorism, said in a briefing this month. The fight against Islamic State is entering a new phase, and the effort to defeat it globally must be approached with the “same level of urgency and commitment that brought us victory in Syria and Iraq.”Sales’s concern reflects an uncomfortable reality: Islamic State is adapting, undermining security and economic prosperity in more countries as it establishes new bases. The threat is particularly acute in Africa, where it’s clearly on the rise.Governments in Europe -- where Islamic State unleashed a string of deadly attacks in France, Germany, Sweden and the U.K. in the middle of the decade -- have “decreased significantly” the group’s ability to strike through tougher policing and a crackdown on online propaganda that’s reducing the ranks of its supporters, said Thomas Hegghammer, a senior research fellow at the Oslo-based Norwegian Defence Research Establishment.“For a start, the pool of perspective attackers wasn’t bottomless,” Hegghammer said in a phone interview. “Over time, it got depleted as people were arrested and killed in attempts to attack. The networks became smaller and weaker as a result of repression. It’s been hard for them to reorganize.”But the lull may be short-lived. The United Nations warned in a July report that the risk of attacks from Islamic State “remains high.”Developing SkillsIslamic State’s “core is seeking to develop the technical skills of potential attackers,” the UN said in the report published on July 15. “Security services in Europe have noted a relatively high rate of disrupted attacks owing to the poor tradecraft and unsophisticated methods of would-be attackers.”Islamic State is “like water that seeps into cracks wherever the cracks are,” Hegghammer said. “If there are fewer attacks in Europe, it’s not because Islamic State leadership decided to wind down that front. I am sure the central organization at the same time is thinking about areas where it can direct more of its resources.”While Europe has experienced a noticeable dropoff in Islamic State-inspired attacks, other places haven’t been so lucky. In the first half of 2019, the terror group claimed to have conducted more than 1,800 strikes, resulting in more than 8,000 people killed or injured, the Counter Extremism Project reported, citing ISIS’s Amaq Agency.In Afghanistan, an Islamic State affiliate claimed responsibility for Saturday’s suicide bombing attack at a wedding hall in the capital. More than 180 others were injured in the attack, which took place in the western part of Kabul, Nasrat Rahimi, a spokesman at the Interior Ministry, said by phone on Sunday.“There’s certainly places where ISIS is more powerful today than they were three or four years ago,” Secretary of State Michael Pompeo said on Tuesday during an interview on CBS’ “This Morning” program. “But the caliphate is gone, and their capacity to conduct external attacks has been made much more difficult. We’ve taken down significant risk. Not all of it, but a significant amount.”While U.S. efforts have effectively disrupted the funding that Islamic State collected from businesses and criminal activities in Iraq and Syria, its global branches and networks are moving toward locally generated revenue, like taxation, in areas they control, according to a State Department official who asked not to be identified discussing U.S. strategy.Despite the loss of valuable territory containing oil wells and a population to tax, Islamic State still has access to hundreds of millions of dollars in reserves to finance attacks and support global affiliates, the U.S. official said. Islamic State and al-Qaeda affiliates are also raising funds through criminal extortion, human trafficking and kidnapping for ransom, the official said.Islamic State has “demonstrated effectiveness at exploiting geopolitical conditions, whether they are political economic, sectarian, religious, or military, ” said Kamran Bokhari, founding director at the Center for Global Policy. “They have plenty of local conflicts that they are exploiting.”Somalia Car BombingAt the same time, al-Qaeda, which carried out the Sept. 11, 2001 terrorist attacks in the U.S., has taken advantage of the global focus on Islamic State to rebuild itself and is now as strong a threat “as it has ever been,” Sales, the State Department official, said.A car bombing by the al-Qaeda-linked militants al-Shabab in July killed at least seven people in Somalia’s capital, Mogadishu. The group claimed responsibility for an attack on an up-market hotel and office complex in Nairobi in January. And it still holds territory in northwest Syria, even after Islamic State’s territorial defeat in the country.Among the world’s most recent deadly terror attacks, one this year targeting Christians in Sri Lanka, set off alarm bells among counterterrorism officials. More than 250 people were killed in coordinated attacks on Easter Sunday at churches and hotels frequented regularly by tourists. In response, the counterterrorism bureau at the State Department sent a delegation in July to discuss the Islamic State threat and assess how it might be able to provide assistance to combat it, the official said.‘Wake-Up Call’“Sri Lanka was a wake-up call for U.S. officials,” said Theodore Karasik, a senior analyst at Gulf State Analytics in Washington. “Primarily of concern is how Islamic State is able to create groups solely based on ideology and transfer its ideology by the dissemination of information.”It’s doing that across South Asia, where Islamic State is a growing threat, the official said. In addition to naming an Islamic State branch in India in May, the department is aware of recent arrests of the group’s followers in Kerala state, the official said. Kerala is one of India’s most religiously diverse states.Even as U.S. officials tout successes in Iraq and Syria, they warn that many Islamic State fighters have gone underground and are biding their time, particularly as the Trump administration weighs troop draw-downs in the Middle East.“The physical caliphate offered IS advantages in operational terms as well as in projecting itself,” according to James Dorsey, senior fellow at Singapore’s S. Rajaratnam School of International Studies and its Middle East Institute. An Islamic State that “is far more decentralized, and potentially far more a franchise with greater opportunity, is likely to prove more difficult to combat.”(Updates wtih Pompeo comments in 12th paragraph.)\--With assistance from Eltaf Najafizada.To contact the reporter on this story: Glen Carey in Washington at email@example.comTo contact the editors responsible for this story: Bill Faries at firstname.lastname@example.org, Larry LiebertFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
[Editor's note: "The 10 Best Cheap Stocks to Buy Right Now" was previously published in June 2019. It has since been updated to include the most relevant information available.]For a surprising number of names, the debate about whether a stock is overbought or oversold is largely irrelevant. Some stocks are simply (still) too cheap to overlook, poised to make gains whether or not the broad market's tide helps out in the foreseeable future. For deeply undervalued equities in anything but a wildly bearish environment, the bigger risk is being on the sidelines rather than in a position. * 10 Cheap Dividend Stocks to Load Up On To that end, here's a rundown of 10 of the market's best cheap stocks to buy right now. In some cases, the per-share price is just oddly low. In other cases, prices compared to earnings are well into single-digit territories. In most cases, both qualities apply.InvestorPlace - Stock Market News, Stock Advice & Trading Tips CBS Corporation (CBS)CBS Corporation (NYSE:CBS) may be down of late, but I still have confidence in CBS stock anyway. The television giant has improved in a big way where it needed to the most, streaming. By 2022, it should have 25 million streaming customers in tow.It's only a sign of the current paradigm shift in how video is delivered to consumers. It's also the reason we've seen a frenzy of M&A within the film and TV arena, the most notable of which is the Walt Disney (NYSE:DIS) acquisition of Twenty-First Century Fox (NASDAQ:FOXA).CBS has also jockeyed to acquire Viacom (NASDAQ:VIAB). At this point, they're just ironing out the details and divvying up the proceeds among the executives.With CBS stock priced at only 5.4 times this year's expected earnings though, the company would also make for a dirt-cheap entry or expansion into the entertainment industry. Air Lease (AL)Source: Karen Neoh via FlickrAir Lease (NYSE:AL) relies on at least a decent economy to drive demand for passenger jets, and recently, investors have seen what they think are too many red flags.Take a closer look at all the data, though, and matters aren't as dire as they may seem. While global economic growth may be running into a near-term headwind in the wake of plenty of political drama, in the bigger picture, airlines still desperately need new aircraft to satisfy demand.In May, and for the 12 months ending then, enplanements and total miles flown once again beat forcasted levels. Boeing (NYSE:BA) believes that between now and 2037, the world's airlines will take delivery of more than 42,000 new aircraft. * 10 Stocks Under $5 to Buy for Fall Given that trend and outlook, Air Lease is undervalued at its forward P/E of just above 5.8. Micron Technology (MU)Source: Shutterstock Micron Technology (NASDAQ:MU) has been a cheap stocks for awhile, but it's bumping up against being properly valued.It's not an easy idea for some investors to get behind.Micron beat the previous quarter's estimates by more than 30% and looks as if it might be coming out of the chip glut cycle better than it entered it.This is a cycle investors have seen over and over again, however, with the same end result every time. That is, producers will curtail production, abating supply and restoring pricing power.Rivals Samsung Electronics (OTCMKTS:SSNLF) and SK Hynix, in fact, have already slowed their DRAM expansion plans, and Micron had undertaken a project to cut capital expenditures by more than $1 billion this year.It could take a while for tempered production to restore DRAM prices, but trading at only 5.22 times this year's projected per-share profits, MU stock is worth the wait. It has been every time before. Citigroup (C)Source: Shutterstock Citigroup (NYSE:C), like most bank stocks, had a rough 2018, and though it has bounced this year, the 2019 rally to-date has been subpar.The stock is trading at a trailing P/E of 10, and a forward-looking earnings multiple of 8. This is cheap even by current banking stock standards, which have been abnormally low.The reason for the mismatched price and forecasted earnings is understandable enough. That is, enough investors are convinced interest rates are going to become just a little too high against a backdrop of just a little too much economic weakness. The concern is largely manifested in the flattening yield curve, which is particularly problematic for banks. * 15 Growth Stocks to Buy for the Long Haul As was the case with Air Lease though (and will be for several others below), the worry isn't fully merited. NCR Corporation (NCR)Source: Shutterstock You may know the company better as National Cash Register Corporation, even though it changed its name years ago to NCR Corporation (NYSE:NCR).The less-limiting moniker reflects the fact that point-of-sale devices are now much more than a means of completing a sale. Since then, the company has expanded into areas like ATMs, self-service kiosks and full-blown inventory management platforms.It's certainly a move in the right direction, although it's arguable that the market isn't giving the new NCR enough credit.That might have something to do with the fact that outfits like Square (NYSE:SQ) and Paypal (NASDAQ:PYPL) are encroaching in NCR's turf. It's a legitimate concern too. There's a huge subset of companies, however, that will prefer to do business with a long-established name like NCR. Timken (TKR)Source: Shutterstock Timken (NYSE:TKR) is anything but a household name. The company makes ball bearings and industrial transmissions to supply mechanical power where it's needed in a manufacturing environment.It's anything but a riveting business, but it's a business that's starting to grow in earnest again as America's industrial engine revs. After rolling over in 2015 as the nation started to fully transition to a service-oriented economy,the United States began making more goods again in 2016. It's never looked back. * 7 Safe Dividend Stocks for Investors to Buy Right Now The paradigm shift has proven to be a boon for Timken, which has grown revenue at a double-digit pace since early 2017. Better still, the new revenue trend has set the stage for earnings growth this year that translates into a projected P/E of only 8.3. General Motors (GM)Source: Shutterstock There's no denying General Motors (NYSE:GM) ran into a headwind four years ago when "peak auto" became a reality. Though a victim of its own rampant success -- subsequent comparisons have all looked lackluster -- investors tend to only care about how current results stack up against the recent past.Those investors, however, may be unfairly harsh with their treatment of GM stock and its peers.While it remains unclear when we'll see another automobile purchase growth cycle again, General Motors is still a solid cash cow, yielding 4.25% while it sports a dirt-cheap trailing P/E of 5.9. * 7 Stocks Under $7 to Invest in Now Regardless, the carmaker continues to impress regardless of the stock's valuation. Nicolas Chahine commented, "the 2018 barrage of tariff headlines made GM stock a tough trade as it fell sharply off its January 2018 highs.This year so far it has been the total opposite. GM management clearly gave Wall Street reason to rejoice and buy the stock and investors ate it up. This morning, they backed up their claim…" Lumentum Holdings (LITE)Don't worry if Lumentum Holdings (NASDAQ:LITE) is an unfamiliar name. Many investors probably haven't heard of it. The company makes communications equipment and industrial lasers and has a big presence in the fiber optic industry.There has never been a time when the world has needed such high-speed connectivity.As more and more wireless devices compete for a finite amount of radiofrequency bandwidth, middlemen are looking for easier and faster ways to offload some of that traffic to physical infrastructure. Fiber-optic lines are more than up to the task.The market doesn't seem to see it yet, pricing LITE stock at a forward P/E of 14.57 despite this year's expected revenue growth of 28% and next year's 27%. As time passes though, Lumentum's role in the future of telecom will become clearer. Terex (TEX)Source: Shutterstock Name any piece of mobile machinery, and Terex (NYSE:TEX) probably makes it. From backhoes to cherry pickers to tracked conveyors to cranes, Terex has solutions for almost any industrial application.That diversity hasn't helped revenue in a while, with the top line peaking in 2014. The stock has been hit-and-miss since then … more misses than hits.The doubters may have overshot their pessimism though, sending TEX stock to a forward-looking P/E of 6.93 after a disappointing second quarter reported in July. While sales growth is expected to slow this year, the company more often than not topped sales and earnings estimates in 2018. It may hold a few pleasant surprises in store this year after this brief stumble. Capital One (COF)Source: Shutterstock Last but not least, add credit card company Capital One (NYSE:COF) to your list of cheap stocks to consider here.Like Citigroup, Air Lease and others, investors have been fearful that a slowing economy -- maybe even a shrinking one -- could work against Capital One. In fact, rising interest rates could hit Capital One particularly hard in that situation, as its target market of risky borrowers could be the first to underpay of stop payments altogether should the global economic condition sour. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What It's another case, however, where the doubters may have overshot. COF stock is now priced at only 7.5 times this year's expected profits, making it one of the cheapest stocks to own in the financial sector. The worst-case scenario is more than priced in.As of this writing, James Brumley held a long position in CBS Corporation. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises The post The 10 Best Cheap Stocks to Buy Right Now appeared first on InvestorPlace.
Bob Bakish, CEO of Viacom, and Joseph Ianniello, CEO of CBS Corp., fared quite well financially in the aftermath of the companies' merger.
(Bloomberg) -- Even in New Hampshire, where the nation’s highest percentage of young people graduate from college owing money, Elizabeth Warren and Bernie Sanders might have a hard time persuading voters of their plan to cancel all such debts and make public university free.To Sanders and Warren, New Hampshire is a must-win, given that they represent neighboring Vermont and Massachusetts in the U.S. Senate. But the student-debt issue is a microcosm of the challenge both candidates face selling their progressive vision in places where more moderate views prevail.A recent YouGov/CBS poll showed that 61% of Democratic voters in New Hampshire want tuition lowered through added government subsidies, but not free. Only 32% of New Hampshire voters favored tuition-free colleges, while 7% said higher education should cost students whatever the market allows.“When you put together free and college in the same sentence, that’s where you might see some disagreement among voters in New Hampshire,” said Dante Scala, a politics professor at the University of New Hampshire. “It’s fool’s gold to chase younger voters if at the same time you’re turning off a greater number of older, more moderate voters.”No. 1 in Graduating With DebtThe average student in New Hampshire, which holds its primary shortly after the first-in-the-nation Iowa caucuses in February, graduates with more than $34,000 in debt, the fourth- highest average in the nation. And 74% of students in the Granite State finish college with debt, the highest percentage in the nation, according to 2017 research by the Institute for College Access and Success.So it seemed only natural that Sanders and Warren would highlight their plans when they both did a swing through the state last week.“Anybody here dealing with student debt?” Sanders asked the crowd during a town hall in Wolfeboro. Almost a third of the people raised their hands.Warren drew on her own personal experiences to highlight the necessity for free education.“For me personally, I was able to get a four-year diploma without debt, because taxpayers had invested in a commuter college that would cost $50. That option is not there any more,” Warren told reporters in Franconia.Youth VoteWarren and Sanders are counting on progressive young New Hampshire voters who are expected to show up at the polls in large numbers. But the overall electorate skews older. Exit polls show young voters in New Hampshire only made up about 20% of the total electorate in 2016, while 60% was 45 and older.“There’s a generational fairness issue,” said Mark Huelsman, associate director of policy and research at think-tank Demos, which has advocated student-loan forgiveness.“The generation that is maturing politically is both dealing with student debt and for the first time dealing with the idea that they might have to pay for their kids to go to college,” Huelsman said, pointing out that the cost of higher education may still be an important issue for older voters who worry about financing the educations of their children or grandchildren.Other leading Democrats running for president offer some form of higher-education reforms, but none go as far as Sanders and Warren.Joe Biden, who a recent Suffolk University poll showed was leading in New Hampshire with 21%, released an education plan focused primarily on supporting teachers, as well as improving and simplifying the government’s existing Public Service Loan Forgiveness Program.Kamala Harris would establish a student-debt forgiveness program. And Pete Buttigieg, who with his husband, Chasten, carry a total of $130,000 in student debt, has said he doesn’t support free college.“I believe in reducing student debt. I also believe in free college for low and middle-income students for whom cost can be a barrier, I just don’t believe it makes sense to ask working-class families to subsidize even the children of billionaires,” Buttigieg said at the first Democratic debate in June.Some students in New Hampshire agree.“Getting rid of all debt for everyone, is not necessarily something I’m 100% a fan of because there is a lot of people out there who take out debt and do have the income to be able to afford it,” said Matt Gerding, a graduate student at the University of New Hampshire, who’s taken out $45,000 in loans for undergraduate and graduate school. “Warren’s plan is focused on those who need the help the most, which I like.”The Pay-ForsSanders’s $2.2 trillion plan would cancel all student debt in America, while making public universities free for everyone, regardless of ability to pay. His proposal would be financed by a 0.5% tax on stock transactions, a 0.1% tax on bond trades and a .005% tax on derivatives transactions.Warren’s $1.2 trillion plan, funded by a 2% tax on the assets of Americans worth more than $50 million, also calls for free public universities. But a Warren administration would cap loan forgiveness at $50,000 and would primarily target people who make less than $100,000 a year.The potentially good news for Sanders and Warren is that young voters have become increasingly active since President Donald Trump was elected.Voters between ages 18 and 29 overwhelmingly backed Sanders in 2016 by 83%. Younger voters in New Hampshire almost doubled their voter share in the 2018 midterm elections, compared to the previous midterms in 2014, according to TargetSmart, a Democratic data and strategy firm.“Younger voters are being driven by a number of issues, including student debt, so we’re seeing the Democratic field reacting to that and promoting progressive policies that will appeal to younger voters,” said Tom Bonier, TargetSmart’s chief executive officer. “Compared to 2016, when I think most voters didn’t take Trump’s candidacy seriously, I believe there will be a significant surge in intensity in 2020.”To contact the reporter on this story: Misyrlena Egkolfopoulou in Washington at email@example.comTo contact the editors responsible for this story: Joe Sobczyk at firstname.lastname@example.org, Wendy Benjaminson, John HarneyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The two companies have agreed to merge, but they need more intellectual property to be a major player in the streaming market.
In recent weeks, the National Weather Service issued heat watches and warnings and heat advisories. Extreme heat kills more than 600 Americans a year on average, according to the Centers for Disease Control and Prevention — so you can hardly be blamed for cranking up the air-conditioning during this heat wave. Residents of Sun Belt states typically pay the most to air condition their homes during the summer, with a median cost of $292.90 per home, according to a recent report from home-energy monitoring company Sense.
Hello from Washington, where things have gone quiet, with the US Congress in recess and the president on holiday at his New Jersey golf course. Then I headed to Des Moines, where the Democratic presidential candidates have been wooing voters over corn dogs at the Iowa State Fair and a rowdy annual fundraising dinner called the Wing Ding. Meanwhile, my colleagues this week have been covering the clashes between protesters and police at Hong Kong airport, WeWork’s plans for a blockbuster initial public offering and climate activist Greta Thunberg’s transatlantic ambitions.
On CNBC's "Closing Bel," Mario Gabelli spoke about buying opportunities in the current market environment. He expects the market to decline 10% or 15%, which is a normal correction. Gabelli ...
Wall Street analysts are taking a wait-and-see approach to the long-anticipated merger CBS Corporation (NYSE: CBS)-Viacom, Inc. (NASDAQ: VIAB) merger, questioning whether the combined companies will create a more profitable global streaming business together than each could have built on their own. BMO Capital Markets analyst Daniel Salmon downgraded CBS from Outperform to Market Perform and lowered the price target from $60 to $51. Barrington Research analyst James Goss reaffirmed an Outperform rating on CBS with a target price of $60.
After months of negotiations, CBS and Viacom have finally agreed to an all-stock merger, which will lead to the creation of a combined company with more than $28 billion in revenues.
CBS Corp.’s pending reunification with Viacom Inc. is eliciting strong reactions on Wall Street, with at least two analysts downgrading CBS’s stock after the merger announcement and one upgrading it.
CBS Corporation (NYSE: CBS ) confirmed a merger agreement Tuesday with its sister company Viacom, Inc. (NASDAQ: VIAB ). CBS and Viacom share the same parent company, National Amusements, which is controlled ...
Moody's Investors Service ("Moody's") placed CBS Corporation's (CBS) ratings, including its Baa2 senior unsecured rating and P-2 Commercial Paper rating, on review for downgrade following the announcement that it has entered into a merger agreement with Viacom Inc. (Viacom) (Baa3 under review for upgrade). On August 13, CBS and Viacom agreed to merge in an all-stock transaction.
(Bloomberg) -- During her trip to the Allen & Co. mogul retreat in Sun Valley, Idaho, this summer, Shari Redstone prowled the grounds with just one executive from the media empire she controls: Jim Lanzone, CBS’s chief digital officer.Lanzone, who oversees dozens of web properties, helped build two businesses that will play a crucial role when CBS Corp. and Viacom Inc. complete their merger. The CBS All Access and Showtime streaming services, with more than 8 million subscribers, have delivered a rare bit of growth in a tough climate for old-line entertainment companies.Stirred to action by the unrelenting loss of pay-TV subscribers, media companies are racing to build online services that can compete with Netflix Inc. On Tuesday, Viacom and CBS announced they’ll merge, creating a $30 billion conglomerate and fulfilling a goal long-held by Redstone, who will chair the combine company. With the deal, she is reuniting parts of the empire assembled by her father Sumner and pinning her hopes on streaming to ensure the companies survive an uncertain moment in media.“Shari Redstone had a problem,” said Laura Martin, an analyst at Needham & Co. “CBS and Viacom are both sub-scale, and they are both hers.”Netflix, the biggest player in streaming, has more than 150 million subscribers, making All Access and Showtime minnows in the online world. The pioneer in streaming, Netflix offers thousands of titles, including a never-ending stream of new scripted series, movies, documentaries, specials, and a vast library of reruns.But together, Martin argues, Viacom and CBS “have a more reasonable chance of competing.”CBS has already built a small, profitable streaming business, relying on a few original scripted shows, a deep library and a live feed of its flagship network. A united ViacomCBS Inc., as the new company is to be called, will control 140,000 TV episodes and 3,600 movies, and will spend about $13 billion on programming annually, close to what Netflix lays out each year.Their combined library has breadth. CBS owns one of the largest archives of hit TV shows in the world, spanning “I Love Lucy,” “Star Trek” and “NCIS.” Viacom’s Paramount Pictures owns one of the largest movie libraries in the world, including “The Godfather” and “Mission: Impossible.” While CBS has a deep collection of sitcoms and scripted dramas, thanks to Showtime, Viacom owns kids shows through Nickelodeon.“Look at what this brings together,” Bob Bakish, who will be the chief executive officer of the combined company, said in an interview. “We have tremendous content scale here across categories, demographics, geographies.”Pluto TVBakish plans to use Pluto TV, an advertising-supported video service he acquired at Viacom, to funnel customers to the paid services. He will also bundle all of the company’s subscription services, including Viacom’s kids offering Noggin.Merging also opens international opportunities, where Netflix has an even larger lead. CBS already sells All Access in Canada and Australia, but could easily extend service to Europe and Latin America with help from Viacom’s Channel 5 in the U.K. and Telefe in Argentina.The merger isn’t without risks. Paramount is one of the weakest studios in Hollywood and has struggled to keep its library fresh with new hits. The studio accounts for just 5% of domestic box-office grosses this year.The new company may also need to take steps to keep the architects of CBS’s recent growth and other valuable executives, such as Lanzone, creative chief David Nevins, CBS Sports Chairman Sean McManus and recently appointed news chief Susan Zirinsky.And even with new heft, ViacomCBS will still be much smaller than most of its competitors. Of the major streaming services already in the marketplace or due out in the net 12 months, All Access and Showtime are the only ones owned by a company worth less than $100 billion.Over the past few years, entertainment companies and pay-TV distributors have responded to the challenges facing conventional media by consolidating into mega-corporations that dwarf CBS and Viacom. Walt Disney Co. bought most of Fox, while AT&T Inc. -- the parent of DirecTV -- purchased Time Warner, creating companies worth than $200 billion apiece. The combined ViacomCBS tips the scale at about $30 billion.Getting CrowdedThose larger companies, along with Apple Inc. and Comcast Corp., are crowding into streaming this year and next to compete with Netflix and Amazon.com Inc. That led analyst Martin to say 2020 will be “The Hunger Games” for the media industry -- a reference to the dystopian film where youngsters fight to the death.That’s why many analysts believe the CBS Viacom tie-up is just a prelude -- the first step in an effort to bulk up or cash out.“We certainly will look at opportunities in the marketplace,” Bakish said. “ViacomCBS is one of the companies that matters, and will get a valuation that fits with that.”To contact the reporter on this story: Lucas Shaw in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- CBS Corp. agreed to merge with Viacom Inc. in an $11.7 billion transaction, capping years of on-again-off-again attempts to reunite two media giants that split in 2006.The all-stock deal, announced Tuesday, combines the most-watched U.S. broadcast network with the parent of Paramount Pictures and cable channels such as MTV and Nickelodeon. It followed marathon negotiation sessions this week as the two sides hashed out a price for the long-awaited merger.Shari Redstone, whose family controls both companies, will become chair of the combined entity, called ViacomCBS Inc. She’ll preside over the media empire originally assembled by her father, TV and movie magnate Sumner Redstone, who is now 96 and ailing.Viacom Chief Executive Officer Bob Bakish will lead the new business as CEO.“It creates a true powerhouse in media,” Bakish said in an interview. “One of the few companies that can shape the future of the business.”Joe Ianniello, currently acting head of CBS, will oversee the CBS side of the business. He took the helm last year after sexual-misconduct allegations toppled longtime CEO Les Moonves. Ianniello has signed a new contract that runs into 2021, according to a Viacom representative.Ianniello is a “tremendously talented executive,” Bakish said. “He has had a real and positive impact at CBS, including the recent period where he was put into place at a tricky time.”With the media industry consolidating ever further into a handful of giant companies, the transaction could give the combined entity much greater clout in negotiating deals with pay-TV distributors. It also could help them spread out the cost of content purchases like sports rights over larger operation.Bakish’s PitchNegotiations picked up steam in April, when CBS suspended its search for a new CEO and extended Ianniello’s contract as interim chief. Advisers, bankers and board members met to discuss the potential framework of a deal.In July, shortly after the Independence Day holiday, a subset of CBS board members invited Bakish to dinner at the 21 Club, a speakeasy in midtown Manhattan, to discuss his views on Viacom, CBS and a potential merger. They then invited Bakish to present his strategy to the full CBS board.Under the agreement that was ultimately hammered out, management expects to generate $500 million a year in cost savings within a year or two of the deal closing. The combined entity, valued at about $30 billion, will have more than $28 billion in sales.ViacomCBS will reduce costs by shedding real estate and cutting jobs, Bakish said.“But at the same time, this will create a company that truly matters,” he said.Stock DealCBS shareholders will get 61% of the combined company, with the remainder going to Viacom investors. Each Viacom share will convert into 0.59625 of a CBS share. The new business also will pay a “modest” dividend.CBS stock climbed 1.4% to $48.70 on Tuesday, with Class B shares of Viacom rising 2.4% to $29.21.CBS will receive six seats on the 13-member board, while Viacom gets four. Another two will go to National Amusements Inc., the Redstone family’s investment company, which has said it will vote its controlling stake in favor of the deal.The last time the companies were in merger discussions, more than a year ago, Viacom directors had agreed to take 0.6135 of a CBS share for every nonvoting share of their business, people with knowledge said at the time. The companies, using the code names “Comet” and “Venus,” had expected to save at least $1 billion by combining. But Viacom went through its own cost cutting in the interim. CBS shares, meanwhile, have dropped. They’ve lost about 18% since the beginning of 2018, as the broadcaster faced mounting challenges, including the ongoing competition for viewers with the likes of Netflix Inc. and the ouster of Moonves.This time around, the negotiations dragged on several days as the two sides worked out the details. The companies held round-the-clock negotiating sessions this week, according to people familiar with the talks.Previous TalksCBS and Viacom, both based in New York, were one entity until 2006, when the Redstone family decided investors would give them greater value as separate companies. That strategy didn’t work as well as expected, and there have been sporadic efforts to recombine them in recent years.CBS had been weighing its next moves since firing Moonves last September, after a dozen women accused him of sexual misconduct, setting off a shake-up that included a board overhaul. Ianniello, formerly chief operating officer, has been running the company as interim CEO ever since.CBS and Viacom have ties that go back to the 1970s. The latter was spun out of CBS in 1971, after the Federal Communications Commission ruled that TV networks couldn’t sell programs into syndication after the shows had completed their original run.Viacom became the vehicle that marketed reruns of “I Love Lucy” and “Gunsmoke,” and attracted the interest of Sumner Redstone as an investment. He acquired control of the company in 1987 and purchased CBS in 1999.Viacom is likely to look for more deals in the near future, Bakish said. The combined company will have robust cash flow and investment grade debt, enabling it to invest more money into programming and pursue deals.Viacom and CBS have been seen as possible deal partners for Lions Gate Entertainment Corp. and Discovery Inc. in recent years, though Bakish said there were no current conversations worth discussing.(Updates shares in 15th paragraph.)\--With assistance from Jeff Green, Gerry Smith, Christopher Palmeri and Ed Hammond.To contact the reporters on this story: Lucas Shaw in Los Angeles at email@example.com;Nabila Ahmed in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Crayton Harrison at firstname.lastname@example.org, Nick TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The markets surged higher on Tuesday as the White House will delay its latest rounds of tariffs. That sent stock markets ripping higher, as bulls cheer the latest move. Let's look at a few stocks that were catching our eye as our top stock trades. Top Stock Trades for Tomorrow No. 1: S&P 500 (SPY)The action in the S&P 500 is encouraging, with the index holding onto most of its morning gains. Framed on the chart above in black lines is the two-day trading range from the last big rebound on Aug. 8.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe Thursday-Friday range was important, as the S&P 500 -- as well as the SPDR S&P 500 ETF (NYSEARCA:SPY) -- was stuck between the 50-day and 100-day moving averages.A break of either each had their own implications. In this case, a break of the 100-day put a decline down to the August lows and the 200-day moving average on the table. That was, unless the index was able to reclaim the 100-day, which it conveniently did on Tuesday.Now back over the 100-day, bulls need to push the index back over the 50-day and 20-day moving averages to regain control. If they do, 3,000-plus on the table. The steadily weakening VIX is also a feather in bulls' cap, although a close over 2,942 would help even more. No. 2: Apple (AAPL)Shelving the tariffs until mid-December is a big win for Apple (NASDAQ:AAPL) and it didn't take long for investors to realize it, bidding up Apple more than 4%. Shares briefly penetrated the vital $210 to $212 zone, but failed to hold above it.Bulls now need to push through this zone. If they can, it opens up the post-earnings highs of $220.50. If they fail to, AAPL needs to hold the 50-day on the downside.While Apple did pull back with the rest of the market, it's worth noting that bears weren't really able to crack this one too badly amid the correction. Keep it simple: Above $210 is great, above the 50-day is good and below the 50-day is bad. No. 3: CBS (CBS)The merger between CBS (NYSE:CBS) and Viacom (NYSE:VIA, NYSE:VIAB) is finally official, although the reaction is quite mixed. VIA stock (A shares) are down more than 6%, while VIAB stock (B shares) are up almost 2%. CBS stock is up ~1%.The problem though? CBS wasn't able to reclaim the 200-day and 20-day moving averages, with its intraday rally being sold into. Below the 200-day and prior uptrend support (black line) leaves $47 on the table.A merger is usually good news, but without shares showing much strength, I'm not too encouraged by the action. Below the May lows opens up a can of worms. No. 4: Viacom (B Shares) (VIAB)As for VIAB stock, it too failed to reclaim the 200-day moving average. What are the odds?Anyway, shares are just above range support between $27.50 and $28. So long as that's the case, bulls can justify a long position. However, below this mark opens up a decline down to $25. No. 5: Advance Auto Parts (AAP)Advance Auto Parts (NYSE:AAP) hit new 52-week lows in Tuesday's session after reporting its quarterly results. However, shares bounced hard off the lows and closed near flat for the session.That's constructive, although the new lows certainly aren't. The good news is, bulls now have a few upside levels to consider and a level to measure against on the downside.A close below the lows -- currently at $130.09 -- may very well usher in new lows. $130 is a reasonable stop-loss, although still below the 200-week moving average makes AAP a concern.Should it reclaim the 200-week, look for a possible rebound up to prior range support at $150. I suspect this level will act as resistance, but we'll have to wait and see if that's the case, assuming it even gets there in the first place.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post 5 Top Stock Trades for Wednesday: S&P 500, AAPL, CBS, VIAB appeared first on InvestorPlace.
CBS and Viacom have agreed on a merger, to be named ViacomCBS, a deal that has been in the works since 2016 — and the combined company will have an edge in the competitive streaming landscape.