CBS Corp (CBS-N)

(A Top Pick April 6/17, Down 25%) A likely deal with Viacom; short-term highly accretive, but long-term faces cord-cutting in cable. This is one of his worst picks.

She likes it. It is a value play. She sees some good growth for next year.

(A Top Pick Oct 4/16. Up 8%.) He started looking at Facebook (FB-Q) and realized it had a far better business model so he sold this last December.

(A Top Pick April 6/17. Down 15%.) This one hasn’t been as positive as he would like. It turned after the 1^st quarter earnings. The 1^st shot across the bow was the cable guys talking about cord cutting, and then ultimately ad spending team and a little bit weaker than what he was expecting.

(A Top Pick Oct 4/16. Up 20.23%.) Sold his holdings in November, and switched into Facebook (FB-Q).

45% of their revenues are from advertising and they are highly correlated with growth in GDP. They have significant ownership in the content of Showtime (70%). They are levered to right pieces of the market. They are returning capital to shareholders. (Analysts’ target: $74.50).

Has been an incredibly well run company. Their parent has been the subject of a lot of troubles. There is talk of a merger of parent and subsidiary. He does not own a lot of media stocks because of the disruption of content distribution. He keeps an eye on DIS-N.

This has a highly rated content, probably amongst the best out there. A growing ad stream and retransmission revenue, which they haven’t really mined, that they charge to the cable carriers. That could be a triple in revenue over the next several years. There is now a potential that they could be put together with Viacom. This could be accretive to the tune of around 10%-15%. It is only trading at around 10X 2018. Strong cash flows. Dividend yield of 1.3%.

(A Top Pick June 9/14. Down 7.64%.) Sold his holdings when he started to see ad spending decoupling from GDP growth. There is also a decline in TV viewership. He has a long-term concern about cord cutting in the US with households no longer subscribing to cable.

(Top Pick Jun 9/14, Up 2.75%) He sold recently at current prices. He saw advertising spending and economic growth decouple so he got out.

They own content and have valuable sports rights, and feels they are going to be able to monetize that content on a go forward basis. Sees this at $70-$75 a year from now. The biggest catalyst is going to be ad revenues. As the US economy picks up, you should see mid-single digit ad revenue growth, which will benefit them, as we haven’t seen this in the last few years. Buying back a whole ton of stock, and thinks there will be dividend growth as well. Yield of 0.79%.