$31.01
-0.12 (-0.39%)
Time Warner, Inc. (TWX)
CAPS Rating:
A media and entertainment company, whose five reporting segments are AOL, Cable, Filmed Entertainment, Networks and Publishing.
Fool.com
The World's Greatest Investing Community
RSS Headlines
Fool UK
Recs
Time Warner will narrow its focus and expand its reach by casting off its most-horrendous acquisition (AOL) in the next year. This jettisoning will allow the organization to focus on the traditional media and entertainment markets it knows so well. As a result, its bottom line will improve dramatically over the next five years ---- and its multiple will expand significantly. I expect TWX to be a three to five bagger in the next half decade.
Time Warner is proposing a reverse split to it's stock holder of 1 for 2 OR at the discretion of the board possibly 1 for 3 reverse split by the end of 2009. If stock tanks it could be really painful for stock holders if the proposal is ratified.
A stock split is an irrelevancy to stockholders. Think of a pizza sliced into twelve pieces that is again disected into 24 pieces in total. It's still the same pizza. Likewise, Time Warner will be the same company worth an identical amount --- regardless of whether the number of outsanding shares are split or reverse split.