Walt Disney Co. (DIS)

Disney (DIS-N) or Yahoo (YHOO-Q) for a one year Hold? Both stocks have done very, very well and are both in a period of seasonal strength right now. This one’s period of strength is from October right through until at least the end of February and sometimes even longer. Hold them both, but both of them are getting closer to the end of their period of seasonal strength.

With the decline in oil and gasoline prices in the US, this company is a wonderful beneficiary and has done pretty well over the past year. It is expensive, but if you are looking out 3-4 years, it is a great ongoing hold.

This company has done extremely well. Its seasonal time period is from October 1 to February 15. On average it has actually produced a 19.6% rate of return. They raised their dividend by 34%, which is a huge amount for them. 1) Fundamentally it is a good place, 2) technically it is a good spot and, 3) seasonally this is a very strong period for them.

When you look at what they own and what they have, this is what everybody wants to be. They want content, they want integrated content. Their acquisitions have been phenomenal. Yield of 1.24%. A multiple of 20 times, in this environment, is not expensive.

One of the first places people spend money when they have more. They are opening a new theme park in China. Their media businesses are doing well. Strong balance sheet and they are likely to win in a better environment.

Will benefit from lower fuel prices as people decide to spend more money elsewhere. The stock is stretched here, however, and he would not want to make it a momentum play. It is a buy on pullbacks only.

They have the TV side (ESPN and ABC), the theme parks with China opening, along with the movie side having a great line up of blockbusters. It is up, pushing 20X now, but in the US environment that is not expensive. 1-year target of about $105. Yield of 0.92%.

(A Top Pick Nov 6/13. Up 34.47%.) It is his view that the Cdn$ will continue to back off from the US$, so he has looked at a lot of US ideas. When the consumer has a little more money, the 1^st thing they spend it on is travel and leisure, and this company plays into that theme. Their franchises in the movie business are exceedingly good.

Has been a solid performer. The dividend is cheap.

A media conglomerate and content provider. Stock has pulled back a little. ESPN just signed a new affiliate agreement this past year, so going forward she expects an improvement in revenues. There is a lot of momentum behind some of their movies. When the studio does well, this is a real positive for their other businesses, such as parks and resorts, because they can leverage off those themes. Have also been putting some money in to improve some of the attractions in their resorts, which is helping to drive traffic as well as spend. Disney Shanghai is opening at the end of 2015, but after that, she expects their CapX to be moderating.

For long-term hold, would it be Starbucks (SBUX-Q) or Disney (DIS-N)? He doesn't own either. They are both fairly expensive with Starbucks trading at about 25X earnings and this one at about 20X. Regarding growth metrics, Starbucks is probably a little bit growthier, but he feels it has some risk. If he had to choose one, it would probably be this, but he sold his holdings about a year ago.

Did really smart moves 15-20 years ago with the ABC purchase. There is a lot going on inside that he is really positive about. There is a Star Wars movie coming out in December. Marvel continues to license and put out new shows.

(A Top Pick May 14/14. Down 11.13%.) Short. A great company and really well-run. He wasn't shorting the company; he was shorting the trend that takes place. This company tends to underperform during summer months. This year, that didn't work. Seasonally, this is a good time to be in this stock.

(A Top Pick Nov 29/13. Up 26.63%.) Firing on all cylinders and have the right assets. Also, they cross sell tremendously well. Their acquisitions have been phenomenal.

If you can pick up a world-class name like this on a pull back like this that is a good thing. They have a multiplatform strategy. They bring out a movie or a character, and put it in their theme parks. Their content is unrivalled by any of the other competitors, so it deserves a premium multiple. Expects the stock to grow in earnings by 12%-15% long-term.