Is Time Warner really going to 26?

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eagle488

I have gotten burned every time I decide to jump on one of Jim Cramer's picks. However, Time Warner seems to make sense. The market is turning away from small to large caps and the company has excellent fundamentals. Not some company that hasnt been around or operating a low P/E.

Thoughts???
 
Everytime I trade on someone else's tip, I get burned.

EVERY TIME.

When I stick to my discipline, I profit.

As far as Time Warner is concerned, it's an abomination of a company.

It's selling off its magazines. Whoop-dee-doo.

It is banking its future on broadband to the home. That's great in theory. When? At what cost? How do they plan on upsetting Comcast, Adelphia, SBC??

Details.

Why would I buy Time Warner when it's bleeding, with a high P/E, when I can buy profitable companies with much lower P/Es and less debt?
 
"Why would I buy Time Warner when it's bleeding, with a high P/E, when I can buy profitable companies with much lower P/Es and less debt?"

Are you suggesting that Time Warner is an unprofitable company? 43 billion in revenue with a P/E of 17, forward P/E of 18.03 (according to yahoo). That doesnt seem terribly high to me when compared to the S&P500 P/E.

The market trend does seem to be favoring large cap stocks.
 
If it can get past 20 it has an excellent chance to make it to 26.00 or higher. The stock has been consolidating for almost 4 years. If it doesn't make it above 20 all of this is just noise.
 
Quote from eagle488:

"Why would I buy Time Warner when it's bleeding, with a high P/E, when I can buy profitable companies with much lower P/Es and less debt?"

Are you suggesting that Time Warner is an unprofitable company? 43 billion in revenue with a P/E of 17, forward P/E of 18.03 (according to yahoo). That doesnt seem terribly high to me when compared to the S&P500 P/E.

The market trend does seem to be favoring large cap stocks.
More...

It's core business is AOL.

Does anyone honestly know what is going to happen to that dinosaur of a business?

A bet on TWX is really a bet on AOL.

I'd rather not place that bet.
 
Lets review the profile for the company:

"Time Warner, Inc. operates as a media and entertainment company. It operates in five segments: America Online, Inc. (AOL), Cable, Filmed Entertainment, Network, and Publishing. The AOL segment provides interactive services, Web brands, Internet technologies, and e-commerce services in the United States and Europe. It offers online subscription service that includes dial-up telephone Internet access, as well as digital services, including various wireless, voice, and other services and applications to AOL members and Internet users. The Cable segment offers video, data, and digital phone services. Its video products include digital video, video-on-demand, subscription-video-on-demand, and digital video recorders. The company’s digital phone services consist of easy-to-use package of video, data, and voice services. The Filmed Entertainment segment produces and distributes theatrical motion pictures, television shows, animation and other programming, and home video product, as well as license rights to the company’s feature films, television programming, and characters. The Networks segment offers domestic and international basic cable networks, pay television programming services, and a broadcast television network. The Publishing segment consists of magazine publishing, book publishing, and various direct-marketing and direct-selling businesses. The company is headquartered in New York City."

***

So the company does have other businesses according to the profile. Yahoo is a non-subscription type operation, but brings in about 5 billion in revenue. AOL is still a brand name that everyone recognizes and is similiar in functionality to Yahoo. They have announced their intention to make AOL into a non-pay site.
 
I was sitting here thinking and ready to hit the sell button. I am long in TWX and thought if it crossed under 18.40 again then the bottom would fall from there. All of a sudden, someone shot an order into the market for 3 million shares and it executed at 18.45 (2:21 PM 13 seconds). That order popped the chart nicely and the house was shaking. The volume bar at the bottom went all the way to the top.

Someone out there is on my side today. Does anyone believe that this is from window dressing or do you think that someone believes Jim Cramer and bought a huge block???
 
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