News Corp (NWS-A)
An entertainment company with operations in eight industry segments, including Filmed Entertainment, Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers, Book Publishing and Other.
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Picking through the carcasses here. I just can't see much downside risk. Where is it going to go?
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Media industry growth play
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News Corp. is the best-diversified player among the large-cap US companies in its segment, with properties like the Fox Business Network and MySpace being good examples.
Financially, its estimated 2008 EPS is 21.6% over 2007. Its slightly-above-average P/E of 20.6x (2007) is expected to decline to 16.9x (2008E), just like its competitors' P/E ratios are also expected to decline. News Corp should remain priced at a slight premium (CBS, Disney, Time Warner, and Viacom average 15.2x for 2008E), but I believe its high expected growth is the reason and provides enough justification. The company is also repurchasing shares, always a good sign.
I have a 12-month target price of $26.50, 18.3% higher than today. Including an expected dividend yield of 0.5%, the total expected return is 18.8%.
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Diversification is the key.
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Good Managementnt
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own my space

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