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Kobe makes 'Final Four' with BUD, ETFC, GM & MCD - NBA still in business

Kobe Bryant and Derek Fisher with refereeYesterday could have been the end of the NBA season, but the Los Angeles Lakers forced a game six in Boston -- not so much by winning; more by having a "refuse to lose" finish that they could not muster before. I am quite sure David Stern is fine with that outcome. ESPN, and ABC television owned by Walt Disney (NYSE: DIS) must be ecstatic. The NBA officials will earn another paycheck, and the sponsors? They are praying for a game seven for sure!

Yesterday, prior to the game, I posted Sunday Funnies: Lakers/Celtics -- NBA business success, and dedicated much of the word flow to all the clamoring about NBA officiating and reasons why the game had issues. Today is all the about the cash.

While the Super Bowl is the hugest of events, an NBA Finals is a saga with twists and turns, and this one so far has had many. The Lakers face insurmountable odds of winning two games in Boston so they have been as much as counted out already.

Laker star and NBA Most Valuable Player Kobe Bryant has posed the most interesting perspective on the challenge his team faces that I can ever remember. He said, prior to the game, that since he did not go to college he viewed his situation like making the Elite Eight referring to Division I college basketball March Madness. He said, you just have to feel grateful you are there and know that you have to win three games to win the tournament.

Continue reading Kobe makes 'Final Four' with BUD, ETFC, GM & MCD - NBA still in business

Time to buy media stocks?

Shares of Time Warner Inc. (NYSE: TWX), News Corp. (NYSE: NWS) and Walt Disney Co. (NYSE: DIS) haven't done well this year. Have they been in Wall Street's dog house long enough?

Time Warner, down 18% this year, trades, at a multiple of 18. Disney, whose shares are little changed, is trading a forward price-to-earnings ratio of 17. News Corp., also little changed, is the most richly valued of the bunch with a forward p/e of 20. All three of them report earnings this week. To put it diplomatically, expectations are low. Disney is probably the most compelling value there because of strong brands and top-flight management.

Revenue at Time Warner is expected to be $1.41 billion, up 14.8% according to analysts surveyed by Thomson Financial. Earnings are expected to be 11 cents compared with 19 cents a year earlier. The stock rose today after the company announced that Jeff Bewkes would replace Richard Parsons as CEO starting next year. Don't expect any big changes at AOL, though. The strategy to turn around the Internet unit was developed by Bewkes. The company will come under pressure to divest AOL and other businesses including publishing. Earnings are due Wednesday.

Disney reports Thursday. Analysts aren't expecting much out of the Mouse House. Revenue is expected to inch up 2.2% to $8.98 billion. Earnings are expected at 41 cents versus 36 cents a year earlier. With the record-low dollar, the company's Theme Parks are dirt-cheap for foreign tourists. Earnings also should be helped by the "High School Musical" franchise and a solid performance by the ABC Television network.

There will be plenty of talk about the acquisition of Dow Jones & Co. (NYSE: DJ) on Thursday's News Corp. earnings conference call. There will also be discussion about the surging popularity of Facebook. Though so far the Fox Business Network has underwhelmed critics, Murdoch will no doubt put a positive spin on the channel's debut. Revenue for the quarter is expected to increase 9.6% to $6.48 billion. Earnings are pegged at 23 cents versus 19 cents a year earlier.

Symbol Lookup
IndexesChangePrice
DJIA-46.7810,244.48
NASDAQ-5.732,161.17
S&P 500-5.911,092.60

Last updated: November 12, 2009: 12:49 PM

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