Walt Disney Co. (DIS)

There has been a lot of capital expenditure over the past few years through building theme parks, investing, buying Lucas film, etc. His view is that this is going to pay off over the next 1-3 years. CapX should stop and they will reap the rewards. There should be additional funds for shareholders. Best of breed and great management team. Dividend yield of 1.09%.

(Top Pick Dec 23/14, Up 14.29%) It did reasonably well once again. It is continuing to do well even past its period of seasonal strength.

A great play on consumer spending in the US. By 2017 they will have 3 Star Wars movies out. They also have the ability to keep on raising the prices for their theme parks and cruise lines. As long as the US consumer hangs in there, it should be good.

(A Top Pick Jan 30/15. Up 13.12%.) This is now a little ahead of itself, and he wouldn’t be surprised if it pulled back a little bit more. That would create a good buying opportunity, because in the long run it is a fantastic company and has a fantastic trend.

Just raised pricing in their theme parks and have been investing big money in their theme parks in China. They have the Star Wars episode coming out this year, which will give them money for years and years and years. The cruise ships and the travel opportunities are big and are one of the biggest hotel operators in the world. Also, a big chunk of its revenues are domestic, so is not being hurt as much as other companies from a strong US$ perspective.

Has been the key growth stock in America for the last 50 years. A great collection of assets. They continue to make fantastic acquisitions, and they integrate their assets very well. They cross sell, from the theme parks to the movies to the toys to the games. Trading at about 20X earnings.

Has been a great performer. They have been firing on a lot of cylinders. They are trading quite a bit above where they have traded historically so she does not own it.

Sold his holdings on a valuation basis some time ago. He believes it continues to be a great company and doing a very good job in terms of good solid revenue as well as great cash flow. However, they are expensive. If you own, he would make a switch into Time Warner (TWX-N).

A consumer discretionary company, and consumer discretionary tends to do well from about late October all the way through to the beginning of May. This company predominantly drives the seasonality for the consumer discretionary sector. It is outperforming the market and he would expect the trend to continue through to May.

A huge content machine that keeps producing hits. What is working right now is sports and sports content. Ad rates for certain sectors are not the strongest, but ads for sports are. The company has done well, but is trading at about 22X forward earnings. Great company, but sometimes you have to let them go and recycle your profits. He prefers Viacom (VIA-Q) which is much cheaper. No sports content, but you get children’s content, country music, etc.

The 3-year chart shows a long, continuous upward trend. It has a high P/E ratio because management knows how to do things right. They are a money making machine. Great chart, great company, great management. Any dip, which we have seen over January, is a buying opportunity.

The 1^st place people spend money when they have more, is on leisure and travel. Their parks are doing remarkably well and they have 2 big movie franchises rolling out later this year. They seem to be able to monetize their properties extremely well. There are all kinds of doors opening as outlets for media, so their content is in great demand. They are going to open a new theme park in Shanghai this year. Dividend yield of 1.21%.

Near all-time highs, but technically it is not overbought. This is a name you want to continue to hold. He can’t think of another media name that has this excellent multi-platform strategy. Valuations are pretty fair for the premier type of name you are getting. There are some catalysts with Star Wars coming out later this year.

A spectacular company. Have turned Marvel comics into a series of stunningly successful movies. Also, likes this as a play on lower gasoline prices for their parks. Extremely well-managed company. Animations have been stunningly popular with kids. They have a huge, huge treasure trove in Marvel characters to bring to the screen over decades. Dividend yield of 1.22%.

Part of the wonder has been ESPN and theme parks. It is very free cash flow generative. A number of the parks they are in are having the cap-X rolling off, so it gives them capital to invest. It is fairly fully valued so be weary of buying at these levels.