Weight Watchers: Gaining Traction, Not out of the Woods

Weight Watchers International (WTW) has surged today after the company beat earnings forecasts and raised its guidance of the year.

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Shares of Weight Watchers have gained 23% to $24.36 at 11:27 a.m., while NutriSystem (NTRI) has gained 2.4% to $15.36 and Medifast (MED) has dropped 1.6% to $31.15.

Weight Watchers reported a profit of 31 cents a share, easily besting the Street Consensus for 9 cents.

Credit Suisse analysts Glen Santangelo and Jeffrey Bailin explain why Weight Watcher’s shares have put on a few pounds:

The predominant message on [last] evening's conference call is that recruitment trends have shown some incremental stabilization and are no longer getting worse. This trend change combined with continued vigilance on the cost side has given management the confidence to raise its full year outlook $0.125 at the midpoint, to a new range of $1.45-$1.70. We note this compares favorably to the current FactSet consensus of $1.40. Cash flow of $83M in the quarter was solid, which should help alleviate some concerns on the upcoming ~$300M debt payment due in 2016. With expectations very low heading into the quarter (as exhibited by high short interest), we expect these results will give the shares a boost in tomorrow's trading. While the
company is far from out of the woods in the intensifying competitive landscape, we are somewhat encouraged that the initial steps management is taking to redefine the offering are gaining some traction.

Shares of Weight Watchers were down 40% this year at yesterday’s close, while NutriSystem had fallen 7.7% and Medifast had gained 21%.

Despite a chilly start, U.S. economy heating up

The Federal Reserve sent a clear message Wednesday about the day's seemingly contradictory economic news: Stay focused on the better economy that lies ahead, not the dismal one in the rearview mirror.

The Commerce Department said the economy barely grew in the first quarter, with the nation's gross domestic product rising at a 0.1% annual pace. That's down from 2.6% growth in the fourth quarter and the weakest since late 2012.

Striking a more positive note, payroll processor ADP said businesses added 220,000 jobs in April, more than the median estimate of 200,000 in a survey by Action Economics. The economists surveyed also estimate that Friday's more closely watched employment report will show that the public and private sectors added a total 210,000 jobs last month, the most since last fall.

The solid ADP report added to a string of recent data — on employment, retail sales and industrial output — indicating that the economy bounced back in March after cold and snowy weather hampered activity in January and February.

"For the most part, (the weak first quarter) is old news," says economist Scott Hoyt of Moody's Analytics.

In a statement after a two-day meeting, the Fed said: "Economic activity has picked up recently after having slowed sharply during the winter in part because of adverse weather conditions."

Partly as a result, Fed policymakers agreed to continue to reduce — from $55 billion to $45 billion — monthly bond purchases that are intended to hold down long-term interest rates and spur growth. The central bank reiterated that it will keep its benchmark short-term interest rate near zero "for a considerable time" after it halts the purchases, stressing that it will wean the economy slowly from Fed support. Many Fed policymakers forecast the first rate hike in 2015, according to their March projections.

The economy's frailty in the first quarter was broad-based.

A measure of business capital spending that's critical to economic growth tumbl! ed 5.5%, far more than economists anticipated. Government spending fell 0.5% after declining 5.2% in the fourth quarter. Many economists expected a sharper rebound from October's federal government shutdown and increased state and local government outlays, rather than a 1.3% decline.

Weakness in other sectors was largely expected. Inventories were a drag on growth as businesses reduced stockpiling after aggressively replenishing shelves in the fourth quarter. Exports fell 7.6% as the economy slowed in China and limped along in Europe. Housing construction decreased 5.7%.

Several economists said the surprisingly weak first quarter portends even stronger growth ahead.

"As the weather has returned to seasonal norms, we have already seen a marked improvement (in March), which suggests that there will be a big rebound in second-quarter GDP growth," Capital Economics said in a research note.

Consumer spending was a surprising bright spot, rising at a 3% annual rate in the first quarter. Hoyt, however, noted that spending on services such as utilities and health care fueled the gain, while purchase of goods were weak, largely because of the weather.

Increased consumer spending and more business stockpiling should lead to a snap-back effect in the months ahead, he says. Hoyt expects growth to exceed 3.5% the rest of the year.

Barclays Capital economist Michael Gapen is more uncertain that the particularly weak first quarter will yield a stronger second quarter. He says the drop in business and government spending may have stemmed from factors other than the weather. Still, Gapen expects the economy to grow at a 3% annual rate in the current quarter.

Many analysts say growth will accelerate on rising household wealth and lower debt, along with easier bank lending standards and stronger business investment.

'Lego Movie' Gives Time Warner Boost in 1Q

Andrew Burton/Getty Images NEW YORK -- Time Warner's (TWX) first-quarter net income climbed as revenue grew on the success of properties such as Warner Bros. "The Lego Movie" and the HBO show "True Detective." The performance topped analyst estimates. Shares rose in premarket trading Wednesday. Chairman and CEO Jeff Bewkes said in a statement that "The Lego Movie" helped create another franchise for the company and led all releases at the domestic box office. Warner Bros. revenue climbed 14 percent to $3.1 billion in the quarter. Home Box Office scored with "True Detective," the most-watched freshman series in the cable network's history. Bewkes said that "Game of Thrones" continues its surge, with its season 4 premiere earlier this month drawing HBO's biggest audience since "The Sopranos" finale. Revenue at HBO increased 9 percent to $1.3 billion. Bringing the NCAA Men's basketball final four to cable television for the first time was a win for Turner, pulling in audiences in the key demographics of adults aged 18-34 and 18-49. Turner's quarterly revenue rose 5 percent to $2.6 billion. For the three months ended March 31, the media and entertainment company earned $1.29 billion, or $1.42 a share. That's up from $754 million, or 79 cents a share, a year ago. Removing certain items, earnings were 91 cents a share. Excluding publishing division Time Inc. -- expected to be spun off in the second quarter -- earnings were 97 cents a share. Analysts surveyed by FactSet forecast earnings of 88 cents a share. Time Warner's stock added 56 cents to $65.30 in premarket trading about 90 minutes before the market open. Revenue for the New York company increased 9 percent to $7.55 billion from $6.94 billion, driven by strong performances from Warner Bros., Turner and HBO. Taking out Time Inc., revenue was $6.8 billion. Wall Street expected $6.63 billion in revenue. At Time Inc., revenue edged up 1 percent to $745 million on the acquisition of the Affluent Media Group, which was previously known as American Express Publishing Corp. Time Warner Inc. updated its full-year forecast on Wednesday to account for the planned spinoff of Time Inc. It now foresees 2014 adjusted earnings climbing by a low teens percentage rate from 2013's $3.51 a share. The company previously said that it expected 2014 adjusted earnings per share to rise by the "low-double-digits" from their 2013 level when excluding Time Inc. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Nabors Industries CEO: $95M in pay, stock gains

It's been a big week for big reveals on the CEO pay front.

The latest: Nabors Industries' Anthony Petrello, who received compensation valued at $68.2 million and gained another $27 million from vested shares, the gas and oil drilling contractor said Wednesday in its annual filing.

Nabors Industries had been under pressure to limit pay and severance packages for executives since 2011, when then-CEO Eugene Isenberg stepped away with a $100 million termination fee, but remained as chairman. Isenberg later waived the payment.

Facing renewed shareholder pressure, Nabors' board of directors terminated a potential $50 million severance payment to Petrello and capped his cash bonus last year. But a new, restructured employment contract provided Petrello a one-time payment worth $45 million, Nabors says.

Petrello, 59, also received a stock award valued at $18.7 million, $1.5 million bonus and $1.7 million in salary. Petrello's 2012 compensation was valued at $19.7 million.

News of Petrello's compensation comes on the heels of several mega-paydays disclosed in proxy filings over the past week. Among them:

Cheniere Energy reported that CEO Charif Souki received compensation valued at $142 million and gained another $130 million from vested shares.

LinkedIn said CEO Jeffrey Weiner received compensation valued at about $49 million and gained nearly $180 million from stock options and vested shares.

Time Warner Cable said CEO Glenn Britt received compensation valued at nearly $118 million, including $62 million in stock and options that vested when he retired Dec. 31.

Wal-Mart reported CEO Mike Duke, who retired Jan. 31, received deferred comp valued at $140 million.

Follow Strauss on Twitter @gbstrauss.

Stocks mixed as investors shrug off weak GDP

Wall Street stocks opened mixed Wednesday, as investors shrugged off the worst quarterly reading on economic growth since the end of 2012, opting to blame the weak growth on bad winter weather.

In early trading, the Dow Jones industrial average was up about 13 points, or 0.1%, while the Standard & Poor's 500 stock index was basically unchanged, The Nasdaq composite was down 0.2%.

The economy grew far more slowly in the first quarter as extreme winter weather helped crimp activity, but Wall Street opted to treat it as old news and a temporary blip.

The nation's gross domestic product, or GDP, in the first three months of 2014 increased at just an 0.1% annual pace, down from 2.6% in the fourth quarter, the government said Wednesday. That's the weakest pace since the fourth quarter of 2012.

Later, the Federal Reserve will conclude its two-day monetary policy meeting. An announcement on its stimulus program is expected.

European shares traded near the flat line but with a downward bias. Inflation in the eurozone rose less than expected.

In Asia, Tokyo's Nikkei 225 index gained 0.1%to close at 14,304.11. The Bank of Japan avoided changes to its monetary policy despite concern that a consumption tax hike would sap growth.

In notable corporate news: French engineering company Alstom said it will decide by the end of May whether to accept a $17 billion offer from General Electric for its energy business.

Twitter's shares were down nearly 10% to $38.39 in early trading, and nearly 50% off its all-time high, after the micro-blogging company revealed that its user growth has stalled.

Some of the world's largest banks may be about to see criminal charges from federal prosecutors, according to a report in The New York Times. The report says that prosecutors are seeking to counter the perception that Wall Street's big banks are "too large to jail."

Oil futures fell 1% to stay just above the $100 level.

The International Monetary Fund slashed its gro! wth forecast for Russia to 0.2% from 1.3% for 2014 in the wake of the sanctions imposed on Ukraine for its actions in Crimea. The IMF also said that the sanctions were working and that investment in Russia is under threat.

Contributing: Paul Davidson, the Associated Press.

Hot Media Companies To Invest In 2015

Selling Girl Scout cookies is an annual spring ritual, one that my 8-year-old daughter participated in for the first time this year with her Brownie troop. I was proud of all the hard work and effort that I saw from dozens of local troop members and parents as they worked to raise funds for the activities that define what being a Girl Scout is.

Yet recent revelations about the pension crisis at the national Girl Scouts of the USA organization have me questioning whether the efforts that my daughter and her troop-mates make are truly aimed at furthering their Girl Scout experience. With recent lawsuits between local Girl Scout councils and the national organization, mistakes in the way the GSUSA handled pension benefits have cast a shadow over what should have been untempered enthusiasm in light of the Girl Scouts' 100th anniversary last year.

Image source: Wikimedia Commons, courtesy Drmies.

Hot Media Companies To Invest In 2015: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

• [By Dan Carroll]

  The summer movie season is almost here, and one science-fiction action blockbuster shined this past weekend. The Tom Cruise-led film�Oblivion, distributed by Comcast (NASDAQ: CMCSA  ) subsidiary Universal, took the top spot at the domestic box office this weekend, racking up more than $38 million in U.S. sales in its debut weekend.

• [By James E. Brumley]

  The cable-television M&A chatter is making its rounds again, this time with Charter Communications, Inc. (NASDAQ:CHTR), Time Warner Cable Inc. (NYSE:TWC), and Comcast Corporation (NASDAQ:CMCSA) pegged as the three points of the ever-changing parties of a never-ending love triangle. The buzz is, well, was that CHTR was first in line to nab TWC. Today, however, it's starting to look like CMCSA is more seriously interested in Time Warner Cable than first thought. TWC shares jumped on the doubly-good news that it may well become the prize in a bidding war between Charter Communications and Comcast Corporation. Meanwhile, CMCSA shares have jumped (albeit not quite as firmly) on the prospect of its ownership of TWC. What's interesting - and perhaps telling - is the fact that not only have CHTR shares not soared in the wake of what would normally be viewed as good news, but Charter shares have actually stumbled heading into the possible bidding war. Might this be an omen of what's actually in store for Charter Communications?

• [By WALLSTCHEATSHEET]

  Comcast provides valuable multimedia and entertainment products and services to a growing audience. The stock has recently broken out, exploded to all-time high prices, and sees no signs of slowing. Earnings and revenue numbers have been rising, over the last four quarters, which has really excited investors. Relative to its peers and sector, Comcast has been one of the year-to-date performance leaders. Look for Comcast to continue to OUTPERFORM.

• [By Tim Beyers]

  R.I.P.D., short for "rest in peace department," tells the story of two deceased cops who return to the living world to protect it from evil spirits that refuse move on into the afterlife. Dark Horse Comics first published the four-issue miniseries from writer Peter M. Lenkov in late 1999. Jeff Bridges and Ryan Reynolds co-star in the film version, which cost Comcast's (NASDAQ: CMCSA  ) NBCUniversal a reported $130 million to produce.

Hot Media Companies To Invest In 2015: DISH Network Corporation(DISH)

DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.

Advisors' Opinion:

• [By Jon C. Ogg]

  One such move that Fitch expects in the near term would be that Dish Network Corp. (NASDAQ: DISH) will make a wireless strategy move within the next few months, and according to outsiders it would likely be in some form with T-Mobile US Inc. (NYSE: TMUS). Fitch said, “Activity around DISH could be the most significant near-term wireless industry consolidation event.”

• [By Rich Duprey]

  Full-spectrum opportunity
  Yet telecom presented an interesting avenue of attack, too, as Verizon (NYSE: VZ  ) had the second "less bad" performance of Dow components, pulling back by less than half of a percent. That was no doubt largely in response to a two-fold development: its willingness to pay $1.5 billion for Clearwire's (NASDAQ: CLWR  ) spectrum and DISH Network's (NASDAQ: DISH  ) offer to buy Sprint Nextel (NYSE: S  ) for $25.5 billion.

• [By Michael Lewis]

  Dish Network (NASDAQ: DISH  ) had a challenging if ultimately disappointing 2013. The company has relentlessly pursued various mergers and acquisitions in hopes of leveraging its significant portfolio of airwaves to create a national broadband network. In the first couple months of 2014, the situation has only become more difficult. Luckily, Dish Network's operating business remains strong, with average revenue per user, or ARPU, rising healthily and generating needed cash flow for the nation's third largest pay-TV provider. Investors and analysts are not ultimately interested in Dish's core satellite TV business -- they want to know if and how the company will make its leap into head-on competition with the major telecoms. Is Dish any closer to its ambitious goal today?

Top Services Companies To Invest In Right Now: Discovery Communications Inc(DISCA)

Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.

Advisors' Opinion:

• [By Jonas Elmerraji]

  If the market's had a great year in 2013, Discovery Communications (DISCA) has managed to do one better. Shares of the $30 billion TV broadcaster have rallied almost 32% year-to-date, stomping the performance of the S&P 500 by a wide margin.

  Still, investors hate this stock right now. With a short interest ratio of 10.7, it would take short sellers more than two weeks of buying at current volume levels to cover their positions.

  Discovery owns a handful of international cable TV channels, including the namesake Discovery Channel, TLC, Science Channel and Animal Planet, and positions in properties such as Oprah Winfrey's OWN Network, launched in 2011. Discovery's niche positioning gives it some big benefits -- the firm's channels focus on topics such as science, technology and history, and they're able to sell more targeted advertising as a result. That's helped push the firm's net margins far above those of more conventional network broadcasters.

  Discovery's channels are only part of the story. Content is king in the broadcast business, and so Discovery's 100,000 hour video library provides the firm with an extremely valuable asset -- especially now that streaming video firms such as Amazon.com (AMZN) and Netflix (NFLX) are falling all over themselves to license content.

  DISCA has some tailwinds at its back right now, and its hefty short interest gives it the potential to pop this summer.

• [By Patricio Kehoe] d that precise strategy and now owns several cable networks available in over 200 countries worldwide. The national and pan-regional networks, distributed through 130 feeds and in 40 languages, have established this media firm in virtually every market. So, let�� take a look at what might have encouraged investment gurus Ron Baron (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) to add more of this company�� shares to their portfolio.�

  Working Through the Niche

  As the niche cable network provider in the media industry, Discovery�� flagship channel addresses topics like science, technology, history and exploration. With TLC, Animal Planet and Discovery as the three key domestic channels, the company reaches 100 million households, and despite the mature U.S. market, sales have grown 6% and revenue 10% in fiscal 2013. This is mainly due to the media giant�� unique content programming and line-up refreshments. Hit shows like Shark Week, for example, have become so popular through advertising that the network experienced in 2013 its all-time best viewership with over 50 million viewing rates during one episode. The men�� lifestyle cable network, Velocity, also experienced a 30% viewership increase in quarter four of 2013, and is now the fastest-growing network in that segment.��

  Furthermore, in addition to the namesake channels, Discovery also owns Investigation Discovery, The Learning Channel, a 50% stake in Oprah Winfrey�� new cable channel OWN, and The Hub, a children�� network created with Hasbro Inc. (HAS). The strong universal appeal of content which transcends cultures and languages, add a differential value to this company and has allowed international distribution across multiple media platforms. In fact, 100% content ownership gives this firm a competitive advantage, as it can seek benefits from non-traditional content distribution. With companies like Netflix Inc. (NFLX)�or Amazon.com Inc. (AMZN) looking to push t

• [By Lauren Pollock]

  Discovery Communications Inc.(DISCA) is mulling a bid for Scripps Network Interactive Inc.(SNI), the owner of cable channels like the Food Network and HGTV, according to a person familiar with the matter. Shares of Scripps jumped 10% to $83.01 premarket.

Hot Media Companies To Invest In 2015: Time Warner Inc.(TWX)

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Tim Brugger]

  Of the 288,701 shares of Time Warner (NYSE: TWX  ) stock he either directly or indirectly owned, chairman and CEO Jeffrey Bewkes has sold 205,681, equal to 71% of his total holdings, at an average price of $59.27 per share, according to an SEC filing this week.

• [By Anders Bylund]

  In the video below, Fool contributor Anders Bylund explains how AMC Networks (NASDAQ: AMCX  ) and Time Warner's� (NYSE: TWX  ) �HBO actually follow the same model in many cases. Lions Gate (NYSE: LGF  ) and Sony (NYSE: SNE  ) may not own any American distribution networks, but they're more than happy to create high-quality content like Breaking Bad or Mad Men for others to distribute. Netflix simply follows a tried-and-true industry practice here.

• [By Jonathan Berr]

  But MSO’s biggest problem is more fundamental. It is a gnat-sized company in a media industry populated by elephants such as Time Warner (TWX),� Viacom (VIA.B) and Walt Disney (DIS).��� Martha Stewart should have sold her company years ago because her brand makes more sense being a part of a larger organization than as a stand-alone company.

Hot Media Companies To Invest In 2015: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:

• [By Alex Planes]

  Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does DIRECTV� (NASDAQ: DTV  ) fit the bill? Let's look at what its recent results tell us about its potential for future gains.

Hot Media Companies To Invest In 2015: Charter Communications Inc.(CHTR)

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Tim Brugger]

  A dose of reality
  Along with airlines, the cable industry consistently ranks among the worst for customer service, year in, year out. The animosity consumers feel toward the cable industry is across the board -- Time Warner Cable finds itself on most of these lists, along with competitors including Comcast (NASDAQ: CMCSA  ) and Charter Communications (NASDAQ: CHTR  ) . Both Comcast and Charter have the distinction of owning even lower customer service ratings than Time Warner Cable, and that's saying something.

• [By Lauren Pollock var popups = dojo.query(".socialByline .popC"); popups.forEach]

  Comcast Corp.(CMCSA) and Charter Communications Inc.(CHTR) reached an agreement for Comcast to divest millions of subscribers, helping it smooth over regulatory concerns involving its $45 billion deal for Time Warner Cable Inc.(TWC) As part of the agreement, Comcast will divest about 1.4 million existing Time Warner Cable customers directly to Charter for cash. Shares of Charter edged up 1.5% to $132 premarket.

Hot Media Companies To Invest In 2015: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Advisors' Opinion:

• [By Steve Sears]

  New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).

• [By Sean Williams]

  For a second day in a row, we need to look no further than the broadcasting sector for our best performers. Time Warner Cable (NYSE: TWC  ) and Cablevision (NYSE: CVC  ) advanced 8.1% and 3.5%, respectively, on speculation that a wave of mergers and acquisitions would sweep through the sector. If you recall, Gannett�shares soared after announcing a $1.5 billion purchase of Belo�yesterday to expand its national broadcasting presence.

• [By WALLSTCHEATSHEET]

  Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company�� battle with CBS has ended to Time Warner Cable’s disadvantage. The stock has been trending higher in recent years and is now pulling-back from all-time high prices. Over the last four quarters, earnings and revenues have been rising, however, investors have expected a little more from the company. Relative to its peers and sector, Time Warner Cable has been a weak year-to-date performer. WAIT AND SEE if Time Warner Cable can stabilize at current prices.

• [By DailyFinance Staff]

  Scott Eells/Bloomberg via Getty Images Stocks ended Friday trading higher, despite a report showing a big drop in sales of newly built homes, which prompted a selloff earlier in the session. The Dow Jones industrial average (^DJI) rose 46 points, or 0.3 percent, to 15,010, building on Thursday's gains. The Standard & Poor's 500 index (^GPSC) added six points, or 0.4 percent, to 1,663. and the Nasdaq composite index (^IXIC) gained 19 points, or 0.5 percent, to 3,657, a day after the exchange was shutdown for three hours because of technical troubles. Data from the Commerce Department showed sales of new single-family homes in the U.S. fell by 13.4 percent in July to an annual rate of 394,000 units, well below expectations of 490,000 units. The data weighed on homebuilder stocks, with PulteGroup (PHM) down 1.6 percent to $16.06, Toll Brothers (TOL) off 3.9 percent to $31.19 and D.R. Horton (DHI) off 2.9 to $18.73. After a technological problem shut down trading in Nasdaq securities Thursday, Nasdaq OMX Group (NDAQ) Chief Executive Officer Robert Greifeld said the exchange resolved the technical issues that led to Thursday's trading halt but can't guarantee there would be no future problems. Time Warner Cable (TWC) is offering free antennas to allow customers to watch CBS (CBS) during a blackout that's in its third week. The companies have been unable to reach a new programming deal since their agreement expired in June. Customers in New York, Los Angeles and Dallas can get a free indoor antenna at their local Time Warner Cable store, or receive a $20 voucher, good for the purchase of an antenna at Best Buy (BBY).

Does the Market Have "The Right Stuff"? - Ahead of Wall ...

Thursday, August 8, 2013

This is Mark Vickery covering for Sheraz Mian today.

Anytime I see things like the S&P 500 power forward strongly up to 1700, only to experience selling-off "turbulence" that's not exactly anticipated but nonetheless quite real, I think of Chuck Yeager from "The Right Stuff," trying to fly that crazy plane into outer space -- at first everything's cool, but as soon as he starts seeing stars, the plane's engine starts to falter. Not that anything in the market is expected to come crashing down to earth these days, but the point is this market turbulence requires cool heads in times of crisis.

And there's really not all that much to have a crisis about -- investors are finally seeing value in the Eurozone following the economic earthquakes in the region over the past couple years, China's trade numbers are looking more stable, and best of all: Initial Jobless Claims are continuing to come down. Yes, this morning's 333K is about 5000 claims more than last week, but our 4-week moving average is now solidly below 350K, which is at least a psychological threshold to have gotten past in order to see economic improvement.

So the market lately has clearly been trying to price in the end of the Fed's Tapering program (where they stop buying back $85 billion a month in asset purchases to keep interest rates down and liquidity in the economy), which many have marked on their calendars for next month. But our memories aren't so short that we can't recall the Sequester and the Payroll Tax increase, and the market managed to navigate through those potholes pretty well, all told. Therefore, how much are we really fearing Tapering, when the economic recovery, while not exactly robust, has proven it can power through such obstacles?

Just look at Tesla's (TSLA) earnings blowout this morning -- here's a company that has aggressively filled a void in the market and is now revving past its competition. And this after the stock having blasted off a few months! ago to 400% gains from this time last year. It's an excellent example of opportunities existing in the very near future that companies with the vision and means can capitalize on, and Tesla looks to be one of the first to have arrived there. And the market approves, clearly.

So, likely, does the 90-year-old Chuck Yeager. There's nothing like a barrier-breaking American to help our beliefs and confidence soar.

Mark Vickery
Senior Editor

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Where Will Schlumberger Go Next?

With shares of Schlumberger (NYSE:SLB) trading around $76, is SLB an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Schlumberger is the supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry.  It operates through three groups: Reservoir Characterization, Drilling, and Production. Energy resources are valuable to consumers and businesses as well as essential to global growth. Energy is present in the daily lives of most consumers and companies worldwide. For those not yet affected by energy, their time will surely come soon enough. As the world dependence on energy continues and will continue, companies like Schlumberger stand to see consistent profits.

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T = Technicals on the Stock Chart are Strong

Schlumberger stock has been range-bound for most of the last few years. Currently, the stock is struggling to make significant progress but has managed to remain positive for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Schlumberger is trading slightly above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Schlumberger options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Schlumberger Options	23.47%	0%	0%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
May Options	Flat	Average
June Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Schlumberger’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Schlumberger look like and more importantly, how did the markets like these numbers?

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	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	-3.09%	-2.60%	11.46%	7.14%
Revenue Growth (Y-O-Y)	7.39%	8.78%	11.13%	16.34%
Earnings Reaction	-1.47%	4.26%	-1.06%	1.0%

Schlumberger has seen mostly increasing earnings and revenue figures over the last four quarters. From these figures, the markets have been mixed about Schlumberger’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Schlumberger stock done relative to its peers, Baker Hughes (NYSE:BHI), Halliburton (NYSE:HAL), Walter Energy (NYSE:WLT), and sector?

	Schlumberger	Baker Hughes	Halliburton	Walter Energy	Sector
Year-to-Date Return	9.91%	14.87%	24.13%	-51.03%	13.64%

Schlumberger has been an average relative performer, year-to-date.

Conclusion

Schlumberger provides essential energy products and services to consumers and companies operating around the world. The stock has not see much movement in recent years but may be getting ready to head higher. Earnings and revenue figures have mostly been increasing but investors have grown to expect more from the company. Relative to its peers and sector, Schlumberger has been an average performer. WAIT AND SEE what Schlumberger stock does this coming quarter.

Can Mercedes-Benz Pump Up Aston Martin?

The Aston Martin DB9 is arguably one of the world's best-looking cars, but its V12 engine, originally designed by Ford in the 1990s, is getting long in the tooth. Photo credit: Aston Martin.

This past week, German automaker Daimler (NASDAQOTH: DDAIF  ) announced a new deal with Aston Martin, the tiny British company famous for its line of sleek -- and expensive -- sports cars.

Under the deal, Daimler's Mercedes-AMG unit, which is the high-performance arm of Mercedes-Benz, will work with Aston to develop an all-new line of V8 engines for the next generation of Aston Martin cars.

Mercedes-AMG will also help Aston develop the electronic controls for those new cars, a critical -- and expensive -- part of making autos nowadays.

So what does this mean for James Bond's favorite carmaker? And what does it mean for Daimler and Mercedes?

A deal that Aston needs, badly
It's pretty clear what this means for Aston: survival.

Since Ford (NYSE: F  ) sold it to a group of private investors in 2007, famed British sports-car maker Aston Martin has had a somewhat rough time.

The economic crisis hit all of the high-end carmakers hard in 2008, but most of Aston's rivals are owned by major global carmakers, which gave them access to the resources needed to keep their products at the cutting edge. That has cost them: Aston's sales were down 10% last year, even as other luxury car brands saw sales increase.

But while Ford set Aston up with a new factory and some great engines a decade ago, the little British firm has had a hard time finding the resources to keep up with rivals such as Fiat's Ferrari and Volkswagen's Lamborghini.

Aston's recent models have all been visually stunning, and the interior trims have always been some of the nicest in the world -- an Aston Martin hallmark. But in terms of performance, the latest Astons are increasingly outclassed by the Ferraris and Lamborghinis that Aston Martin would like to be competing with.

The problem is Aston's engines, which are a series of V8 and V12 power plants that have their roots in old Ford designs dating back well over a decade. In fact, Ford still builds the engines for Aston, in a corner of a giant Ford engine plant in Germany, under a deal that was signed when Ford sold Aston.

They're nice engines, and Aston has updated them since parting ways with Ford, but they're not really competitive with the latest high-tech offerings from Ferrari and others. (They're arguably not even competitive with the engines that General Motors has been putting in its Chevy Corvettes lately.)

Aston's deal with Ford is expected to expire this year. And Aston, which once upon a time built its own engines by hand at great expense, isn't equipped to build -- much less to design -- a competitive modern high-performance engine that can comply with global emissions and safety regulations.

That's why Aston Martin needs Mercedes and AMG: It urgently needs new engines, and help developing new models.

But what does Daimler get out of this?

A marketing coup for Mercedes, and maybe more
Mercedes-AMG -- which car enthusiasts usually just call AMG -- was once an independent company that souped up Mercedes-Benz sedans, but nowadays it's the part of Mercedes that develops limited-run, high-performance models. It's roughly comparable to the "M" division at BMW.

What AMG gets out of this is a little bit of scale, and a little bit of prestige. Aston sells a few thousand cars a year, mostly to wealthy auto enthusiasts; having it known that those cars are powered by special engines cooked up for Aston by Mercedes won't hurt Mercedes' reputation with wealthy buyers one bit.

As part of the deal, Daimler will get an ownership stake in Aston, up to 5% as the deal progresses. These are said to be non-voting shares, but it's possible -- this wasn't announced -- that there's an option for Daimler to buy more (or even all) of Aston at some point down the road.

A good deal all around
It's looks like a good deal all around. Aston urgently needs a partner, and AMG, which has the technical savvy Aston needs along with the brand prestige that Aston's customers will want, seems like a fine choice.

For Daimler, it's the kind of deal that could yield some big marketing benefits at relatively small expense. And for car nerds around the world, it's going to be very interesting to see what these two old companies cook up together.

Aston Martin and Mercedes-Benz are both working hard to expand in China, where the auto market has been white-hot. But if you're looking for investment opportunities, a recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," names the two global giants that are best positioned to reap big gains as China's auto boom continues to unfold. You can read this report right now for free -- just click here for instant access.