Scripps Networks Interactive, Inc. (NYSE:SNI)

Many miles to go

Real money pick. The cable companies no longer have a lock on media distribution so content is to become king.

Excellent fundamentals

Licensing

can 30 stocks randomly picked from a bag of scrabble tiles beat the market? there's only one way to find out.

value screener

S&P 5 star

Content providers will be king as we move from a fixed cable format to a free form internet format where you can watch any show you want anytime. DVR in the cloud. Watch a Food network show on your iPad while you follow the recipe. Shows can be "framed" with fixed adds in the frames. Or adds inserted in a way you can't skip forward like with a DVR. Plus adds targeted to your web searches and purchase as well as the show. They have great content that is relatively cheap to produce. Google Fiber coming to your home in 3 years - then the game is over for cable. Get in now. Plus, the chart is in a base building pattern that has shown double-bottom support on the 200 dma with a current sideways move along the 50 dma. If you see it hold above the 50dma, you will likely see the right side of the base build. Then if you get the expected break-out from there, we will see the next leg up for this growth stock.

Picking this based on peter lynch style investing - I love their programming.

Strong return on capital (20%), forward PE of 13, steady growth in revenue and EPS, strong brands.

Scripps (and Discovery) are ruling the premium cable space. There is plenty of room to grow within and outside of cable for these brands. They have great models and a base of viewers that is used to paying for their content. This makes it possible for them to distribute content many different ways and for a premium. It is an advantage over all the broadcast providers.

SA best buy now

Because you guys said so...

Cyclical action in an uncertain market in an adverse environment.

There is less momentum, less volume, and less buying going on. We are in the last part of this rally.

The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).

Content is king. HGTV, Food Network, etc. very popular and focussed so it should transition well into Internet. I like the balance sheets. Not much history so I can't tell if this is growth at a reasonable price, but it is growing dividends over the last few years.