Today's Technical View on Walt Disney and Time Warner: These Companies Provides Value to Investors

Feb 27, 2013, 08:00 ET from

LONDON, February 27, 2013 /PRNewswire/ --

Media stocks had a good run and do not seem to be running out of steam yet. The sector is also witnessing good merger and acquisition activities as companies try to consolidate their positions. Time Warner Inc. (NYSE: TWX) is planning to shelve its publishing business. The stock is performing well and recently created a new 52-week high. The Walt Disney Company (NYSE: DIS), on the other hand, is on an acquisition spree and made high profile purchases like Marvel and Lucasfilm. The company also inked a new collaboration with Netflix. Its stock also provided good returns to the investors. StockCall initiated free in-depth technical analysis on Walt Disney and Time Warner which are currently available upon sign up at

The Walt Disney Company Sees Hedge Fund Buying

The Walt Disney Company sold its ESPN channels in the United Kingdom and Ireland to BT Group. The deal is likely to be closed by July of this year. The financial terms of the deal have not been disclosed by the companies. Walt Disney Co. is growing organically as well as through mergers and acquisitions. The company recently finalized its purchase of LucasFilm. It has also acquired Marvel Entertainment to augment its product portfolio. Sign up for the free technical analysis on Walt Disney Co. at  

Walt Disney's stock has attracted hedge fund buying interest. JAT Capital Management holds considerable stake in the company as disclosed by its latest 13F filing. The fund increased its stake by 2,854 percent in the last quarter. The company's shares are also held by other prominent institutional investors like Mason Hawkins and Ken Fisher. Farallon Capital Management also invested over $100 million in the company.

The diversified entertainment stock grew 30 percent in the past 52 weeks and its momentum is likely to continue as the media company is expected to grow its bottom-line at an annual rate of 11 to 12 percent. The stock trades at Price/Earnings ratio of 17.44 which is slightly below the industry average, indicating that the stock still has upside left to it.

Time Warner Inc. May Sell Magazine Business

Time Warner recently announced 29 cents per share in dividend. The stock's dividend yield stands at 2.20 percent. Time Warner Inc. stock is up 38 percent in the past 12 months while it grew 9 percent so far this year. Its stock recently hit a new 52 weeks high. The company is also garnering hedge fund favors as Coatue Management held stake in it. Download the free report on Time Warner Inc. by registering at  

Time Warner is also looking to restructure its business as the company is said to be in talks with Meredith Corp. about a magazine deal. The company is planning to divest its magazine business and focus on its core competency areas. If successful, the deal will free up resources to be channeled into more lucrative units, as the magazine unit is one of the worst performing segment for Time Warner Inc. The move will help to unlock the value and may act as a positive catalyst for the company's stock.

Time Warner recently reported its fourth quarter results and its net income stood at $1.17 per share. It was expected to report its earnings at $1.10 per share. On the back of good performance, the stock is likely to maintain its bullish streak.

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