With the Grammy Awards now behind us ("My Humps?" Really? And did I actually see Slayer on the list of winners?), the red-carpet watchers can turn their collective attention to Oscar night, which is now less than two weeks away.
A handful of publicly traded entertainment companies will be in focus as potential beneficiaries of eight and a half pounds of gold-plated honor. This year may be one of the least exciting broadcasts, with clear front-runners already established in the major categories. Forest Whitaker has come a long was from Fast Times at Ridgemont High, with a powerful turn as Idi Amin in The Last King of Scotland, released by Fox Searchlight, a division of News Corp. (NYSE:NWS). Fox Searchlight was also the force behind Little Miss Sunshine, a simple family dramedy holding its own against some major competition and nabbing a Best Picture nod.
As for Best Actress, a Helen Mirren victory seems like a foregone conclusion for her nuanced turn as Queen Elizabeth II in The Queen (also a Best Picture nominee). The Queen was released by Walt Disney's (NYSE:DIS) Miramax division. (Incidentally, the Oscars will air on DIS unit ABC Networks).
Beth Gaston Moon is an analyst with Schaeffer's Investment Research.Martin Scorsese may finally walk away with the top directing honor this year. Nominated seven times in previous years as both a director and a writer without ever taking home the prize, Marty is the Susan Lucci of the Academy Awards world. With The Departed a slight favorite for the Best Picture prize, it could be Scorsese's year for a directing win as well. The star-studded film was released by Warner Brothers, a unit of Time Warner (NYSE:TWX).
NWS has maintained a strong uptrend since late 2005 but continues to elicit skepticism among investors and analysts. In my opinion, the remnants of a "wall of worry" should help NWS continue to move higher, even if Last King or Sunshine fail to garner any Oscar gold. Of these three names, it looks the most appealing at the current juncture from a portfolio perspective. But for a Saturday night rental, The Departed is my top pick.
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