Discovery Communicatns New (NASDAQ:DISCA)

planet green, oprah

The Recent and Ongoing Surge in HD Interest and Quality Programs Being Offered by DISCA Ensure That It Will Do Well Over The Next 2 to 4 Years

Family cannot get enough of men eating bugs, someone shoveling poo and guys busting myths.

Anyone who has a HD television set knows how much it kicks butt over analog (tube) tv's. However, there is also differences in the quality of HD broadcasts among stations. I have gathered a small consensus that agrees Discovery Network programming produces top of the line quality high definition. Those hooked on HD (and believe me that demographic is increasing rapidly) will gravitate to the awesome HD quality of Discovery. Seems to me to be a Rule Maker. I realize Discovery Networks is only a portion of Discovery Holdings, but both parts of the company seem to be managed well with solid and experienced leadership.

Discovery Holding is a good play with two catalysts: a potential stock buyback in the works and talks under way to obtain 100% control of Discovery Communications, Cramer said.

http://www.thestreet.com/_yahoo/funds/madmoneywrap/10391713_2.html

This stock has been misunderstood given it's complicated ownership structure. Financials have not been consolidated as well making quick analysis difficult. As more people peel back the onion and value this company on a per subscriber basis, it will rise accordingly. Target = $40

Media giant owns Ascent and Discovery. 1.5 billion subscriptions worldwide. Good financials. Cash flow net avail for reinv strong. Trading near all time high, but room to move higher.

Although I love this company's products, I think the stock is currently overpriced & overvalued at $21. Also the P/E of 144.17 is quite high!

Great programming. Room for growth.

nice chart

Through their wholly owned subsidiary, Ascent Media and equity affiliate Discovery Communications Inc, Discovery Holdings is involved in the production and distribution of entertainment and educational programs, the sale and licensing of branded and other specialty products and post production work for the entertainment industry. They operate in the United States, Europe, Latin America and Asia.

Ascent Media’s revenues in the first nine months of 2006 decreased 6%, mainly due to significant one-time projects in 2005, which were not present in 2006. With Ascent Media undergoing a few management changes, its segments are to be realigned in the fourth quarter. However, Discovery Communications revenues increased 11% due to higher subscribers, rate increases and higher advertising revenues, which was a result of higher viewer ship in Europe and Latin America. In November, Discovery Communications also appointed a new CEO in David Zaslav who used to be the president at NBC. It will be interesting to see how this appointment turns out for the company.

In November 2006, Discovery Communications announced the formation of Animal Planet Media Enterprises and the accession of two companies in the pet industry – Petfinder.com and PetsIncredible. Both of them are popular among pet lovers and they will help amplify the set of services and content for the newly formed Animal Planet Media Enterprises. Around $38.4 billion was spent on pet services in 2006 and this number is expected to grow 8% in 2007, which should augur well for the company. The online operations are being beefed up with broadband channel animalplanet.com and the ramped up Discovery.com website will help the company make use of the online advertising boom.

In January 2007, Zaslav ousted 5 senior executives and is considering appointing a head for each network of Discovery Communications. All of these suggest that 2007 will be a smooth year for Discovery.

Great brand name in control of a niche.

Undervalued media company

Waiting for John Malone to work his magic, then sit back and wait for rumours of a buyout.

Will be sold off, perhaps as early as mid-2007, for >$20.

Fantastic brand properties, especially international, that investors will eventually reward with higher multiples. It's a complex equity arrangement that I hope they will clean up. For now, focus on the properties and the expansion opportunities.

The 'product assets' and 'content library assets/liscense rights' given convergence opportunity of media channels - tv (cable/sat), broadband, mobile.

BUY OUT POSSIBILITY