Walt Disney Co. (DIS)

The selloff on this began with their cable subscribers being reported to have fallen a bit. However, when you look at their other 3 parts of their business, studios, theme parks and consumer products, those are doing extremely well. They are very integrated company that can produce a film, put it out to TV, sell you a whole bunch of toys, and also put it in their theme parks. These parts override what is happening on the cable side. Cable is only 30% and ESPN is only a fraction of that. Dividend yield of 1.29%.

Disney is a content monetization machine. They have been invested in Disney for a number of years for all good reasons and they are happy with it. They are the best in the business. Currently down because they got a bit ahead of themselves. Doesn't recommend that you buy it right now because it is in a negative market cycle. It is a cyclical company, half the revenues are cyclical. Have to be careful. They are happy owning it right now.

The company talked about how they lost subscribers on ESPN, and that caused a lot of selling in media stocks. This is more than ESPN and they have a much deeper franchise than that. Have made a lot of good acquisitions over the years.

With the selloff because of cable cutting fears, this is potentially a very good buying opportunity. It is the benchmark name in media space. It certainly spooked investors when the CEO indicated cable cutting was a risk and a worry. A world class media franchise.

This has pulled back, but the long-term trend is not broken. The 200 day is still pointing higher. There isn’t too much reason to be concerned about the long-term prospects. Seasonally this stock performs poorly in the summer. Technically it has pulled back to long-term support, and if it can hold this level he expects it to bounce higher. Looks pretty good from a long-term perspective.

(Market Call Minute) He cut his position in half. It is negative in the broadcast piece of the business (40%). It is a great business otherwise.

ESPN is a prize asset of theirs. Sports is something you want to watch live. Theme parks are doing well and they are seeing good traffic growth in the US and then China opens in 2016. The stock came off and she is using that as an opportunity to add for their clients.

(Top Pick Aug 1/14, Up 31.17%) ESPN protects them from the pullback in media in general. They deliver and they have the content. They have a new park opening up next year in China. They have so many franchises. They have the content across so many platforms. It has been a very consistent growth stock. Buy it and put it away.

Is it a onetime problem or on-going. He thinks it is on-going and would be reducing or staying out. This is probably not a onetime event.

Just reported and surprised people with the currency headwind. It was bigger than most people had thought. There were also some cautious statements about ESPN fibre losses. On the longer-term basis, this is a tremendous franchise. The big tailwinds are Star Wars and theme parks in China which will be opening soon. This is a great time to get in. He has a small position.

Best in class. Have been spending a lot of money in the last 3-4 years, and feels they are going to stop spending and be able to reap the rewards. They are going to be able to increase the cash flows through their theme parks and Star Wars, and hopefully return some of that to their shareholders. Dividend yield of 1.1%.

This has been a big winner. It keeps surprising on the upside with one hit movie after another. A very well-run company. Not cheap, but they seem to continue to have the franchise to support that. A good company for the long-term. He sold his holdings too early.

Time Warner (TWX-N) versus Disney (DIS-N)? These are both great companies. Thinks Time Warner has a better valuation profile and is not as expensive.

A great company. He missed it, and if it had a meaningful pullback, he would be in the stock. Valuation is outrageous at 25X. There is no question that they are doing everything right and are compounding capital. Can they continue to compound capital at 25X? He is not willing to bet his money on it.

(A Top Pick Aug 6/14. Up 39.88%.) This has everything going forward. Has a strong set of movies on the Marvel side, a very strong book in animation and the parks are doing very, very well. A fantastic company.