Over the past few weeks I've been drilling down into�LINN Energy's (NASDAQ: LINE ) recent response�(link opens a PDF)�to short seller comments about its business practices. The goal here is to better understand what the company is trying to relay to investors. Today, I want to drill down into what the company has to say about its cash flow.
The issue is that some investors and analysts don't like how LINN accounts for the puts it bought as part of its hedging strategy. As I'm sure you know, hedging is an integral part of the thesis of an investment in LINN. It the main reason why I think its distribution is safer than its peers.
There are many ways to hedge production and each way has pros and cons. For the most part, LINN hedges with swaps which are fixed price contracts. However, in the past the company has bought puts on a portion of its production which had an immediate cost but left that production open to upside if prices improved. Some investors have questioned the way LINN accounted for the cost of these puts. With so many other hedging options at its disposal, LINN decided to do away with buying puts because they simply are not worth the hassle.
Best Dividend Stocks To Own Right Now: CBS Corporation(CBS)
CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.
Advisors' Opinion:- [By Ben Levisohn]
Timing of the transaction completion is mid 2015, following final approval of the BoD, receipt of favorable opinion on tax free status from IRS, shareholder approval, & all regulatory approvals. As a point of interest we have seen several announcements recently where an announcement of the split drives the stocks up 10% and quickly fades as timing sets in and market risk still exists. recent examples [Hertz (HTZ), FMC Corp (FMC), Agilent (A), Noble (NE), CBS (CBS)]. I would expect the stock to fade hard from these levels
- [By Eric Bleeker, CFA]
TV's new golden age is broad
Not mentioned in all this is that broadcasters aren't doing so bad themselves. Ad Age�recently reported that CBS� (NYSE: CBS ) recently concluded its upfront negotiations with advertisers and managed to secure a 7% to 8% price increase per viewer in the upcoming season.� - [By Rich Smith]
Last week, CBS's (NYSE: CBS ) The Big Bang Theory�made television history of a sort, when a repeat of the popular sitcom beat out an original live episode of American Idol -- Fox's erstwhile ratings juggernaut.�TBBT�not only scored more viewers over all in the 8:30 time slot in which it ran; it also attracted significantly more of the 18-to-49 age group whom advertisers covet.
- [By Paul Ausick]
CBS Outdoor Americas Inc. is currently a wholly owned subsidiary of CBS Corp. (NYSE: CBS) which will offer 20 million shares in an anticipated price range of $26 to $28 a share. Following the tax-free spin-off, CBS Outdoor will become a REIT. CBS first announced plans for the spin-off in January 2013. Since then, share prices for outdoor advertising firms Lamar Advertising Co. (NASDAQ: LAMR) and Clear Channel Outdoor Holdings Inc. (NYSE: CCO) have risen about 30%.
Top 10 Media Stocks To Buy For 2014: 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 Patricio Kehoe]
Although these efforts have given positive results, reducing customer losses and growing revenue per customer, the firm still operates at a disadvantage in relation to wireless and cable companies . Firms such as Comcast Corporation (CMCSA), Time Warner Cable Inc. (TWC) and Charter Communications Inc. (CHTR) have built superior platforms for Internet access, thus offering better data speeds as well as a full complement of services.
Top 10 Media Stocks To Buy For 2014: 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 Ben Levisohn]
So yes, Disney is a Buy, and DiClemente’s $90 price target suggests another 19% of upside from yesterday’s close, though it should be noted he also likes CBS (CBS), Twenty-First Century Fox (FOXA) and Discover Communications (DISCA).
- [By WWW.DAILYFINANCE.COM]
Evan Agostini, Invision/APCBS president and CEO Leslie Moonves ranked No. 2 on a list of highest paid CEOs. LOS ANGELES -- Once again, media company CEOs are among the highest paid executives in the nation, occupying six of the top 10 earning spots, according to an Associated Press/Equilar study. Compensation experts say a variety of factors are at play, including the gain in media stocks, the intangible value of talent in a hit-or-miss business, the control of shareholder power in very few hands, and the decline of the financial sector. Stock Outperformers Outsized stock growth boosts the value of stock and option grants. Media companies' shares have rebounded strongly since the 2008 recession, mainly because advertising spending grows in tandem with a growing economy. That means higher-priced ads and higher-priced execs. Stocks of the six media companies on the list all outperformed the Standard & Poor's 500 index (^GPSC), which grew 128 percent in the five years through December 2013, according to FactSet. CBS (CBS) shares grew a whopping 699 percent in that period; Discovery Communications (DISCA) went up 539 percent; Viacom (VIA) rose 377 percent; Walt Disney (DIS) rose 250 percent; Time Warner (TWX) climbed 259 percent and Comcast (CMCSA) grew 223 percent. "If shareholders are happy they don't care how much a person makes," said Paul Dorf, managing director of consulting firm Compensation Resources. "When they complain most is when the market doesn't do well and their stock is going down the tubes." Talent Quotient Making it big in media means generating hits. And while top executives may not be hands-on with every decision, they are where the buck stops. Take Disney's animated blockbuster "Frozen," which grossed $1.2 billion at box offices worldwide. While Disney CEO Bob Iger didn't make the movie, he did orchestrate Disney's $7.4 billion acquisition of Pixar in 2006, which brought in talented executives to help reform Disney's faltering a
Top 10 Media Stocks To Buy For 2014: Thomson Reuters Corp(TRI)
Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.
Advisors' Opinion:- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature an upgrade for Thomson Reuters Reuters (NYSE: TRI ) , a new buy rating for Novavax (NASDAQ: NVAX ) -- but for Union Pacific (NYSE: UNP ) , a downgrade. Let's get that bad news out of the way first.
- [By Monica Wolfe]
Thomson Reuters (TRI)
On Feb. 11, Thomson Reuters declared a dividend of $0.330 per share, representing 3.80% dividend yield for the company. This dividend is payable on March 17 to shareholders of the record at the close of business on Feb. 24, 2014.
- [By Associated Press]
Ron Brown, head of Elektron Analytics, a Thomson Reuters (NYSE: TRI ) unit that sells news feeds that computers can read, said that the words "explosions" or "Obama" alone wouldn't have triggered selling. But add "White House," and it's a combination even the slowest computer couldn't miss.
- [By Jonas Elmerraji]
It's been a solid year for Thompson Reuters (TRI); since the calendar flipped over to January, this $30 billion financial media firm has rallied more than 22%. But don't worry if you've missed out on the move -- TRI looks well-positioned for higher levels thanks to the pattern that's been setting up in shares.
Thompson Reuters is currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance above shares at the $35.50 level and uptrending support to the downside. Basically, as TRI bounces in between those two technically-important price levels, it's getting squeezed closer and closer to a confirmed breakout above that $35.50 price level. When the breakout happens, it's time to be a buyer.
TRI closed above the $35.50 level in yesterday's session, but it's a little early to call it a breakout just yet. If shares can hold above that breakout level all through today's session, then the buy signal is worth heeding.
Top 10 Media Stocks To Buy For 2014: 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 Holly LaFon]
The Fund had only three detractors in the quarter: Mosaic, Abbott Labs, and DIRECTV (DTV), with only Mosaic negatively impacting YTD results. We bought and exited Mosaic during the third quarter. Our case changed quickly with the potash industry drama that caused prices to drop. Abbott was down 4% in the quarter following FX headwinds, concerns over tougher rules for device approval in Europe, and issues at a dairy supplier leading to a meaningful product recall in the baby formula division in China. DIRECTV slipped 3% on increased subscriber churn amidst a challenged Brazilian economy. DIRECTV Latin America remains well positioned to benefit from rising pay-TV penetration in the region, and the mature U.S. business continues to generate higher ARPU (average revenue per user).
- [By Luke Jacobi]
Sunday night AT&T (NYSE: T) and DirecTV (NYSE: DTV) officially announced intentions for AT&T to acquire DirecTV. The deal assigns DirecTV a $67.1 billion enterprise value. DirecTV shareholders will receive most of the payout in AT&T stock and about a third in cash.
Top 10 Media Stocks To Buy For 2014: 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 Monica Gerson]
On Tuesday, Time Warner Cable (NYSE: TWC) and Viacom (NASDAQ: VIA) renewed a multi-year distribution agreement. Time Warner shares rose 1.16% to close at $134.04 on Tuesday, while Viacom shares gained 0.22% to close at $86.10 on Tuesday.
Top 10 Media Stocks To Buy For 2014: Liberty Global Inc.(LBTYA)
Liberty Global, Inc. provides video, broadband Internet, and telephony services primarily in Europe and Chile. The company offers broadband services over cable distribution systems, including video, broadband Internet, and telephony; and video services through direct-to-home satellite, or through multichannel multipoint distribution systems. Its analog video services comprise basic and expanded basic programming; and digital cable services include basic and premium programming, digital video recorders, and high definition programming, as well as pay-per-view programming, such as video-on-demand and near video-on-demand. In addition, the company offers voice-over-Internet-protocol and circuit-switched telephony services, as well as mobile telephony services using third-party networks. Further, it owns programming networks that provide video programming channels to multi-channel distribution systems owned by the company and the third parties. As of December 31, 2011, the com pany owned and operated networks that passed 33,262,100 homes; and served 18,405,500 video subscribers, 8,159,300 broadband Internet subscribers, and 6,225,300 telephony subscribers. Liberty Global, Inc. was founded in 2004 and is based in Englewood, Colorado.
Advisors' Opinion:- [By Rich Duprey]
Having completed its $24 billion acquisition of Virgin Media, cable operator Liberty Global (NASDAQ: LBTYA ) said its board of directors had authorized a $3.5 billion stock repurchase program that it intended to complete over the next two years.
- [By Alex Webb]
Kabel Deutschland is a key part of Vodafone�� expansion strategy as the carrier looks for ways to boost revenue and lock in customers with Internet and television offers in addition to wireless service. Kabel Deutschland is the biggest cable company in Germany, Vodafone�� largest market, and had drawn a rival bid from John Malone�� Liberty Global Plc. (LBTYA)
- [By Monica Gerson]
Breaking news
Loews (NYSE: L) reported a 59% rise in its third-quarter earnings. Loews posted a quarterly profit of $282 million, or $0.73 per share, versus a year-ago profit of $177 million, or $0.45 per share. To read the full news, click here. BankUnited (NYSE: BKU) announced today the commencement of an underwritten offering of 9,000,000 shares of its common stock by certain of its existing stockholders, subject to market and other conditions. To read the full news, click here. Liberty Global (NASDAQ: LBTYA) announced today an agreement to sell substantially all of its international content division Chellomedia to AMC Networks (NASDAQ: AMCX).To read the full news, click here. Myriad Genetics (NASDAQ: MYGN) today announced that validation data for the Myriad myPlan Lung Cancer test showed that it significantly predicted patients' risk of death from early-stage lung adenocarcinoma within five years of being diagnosed. To read the full news, click here.Posted-In: Bank of America US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets
- [By Sam Robson]
LONDON -- Vodafone� (LSE: VOD ) (NASDAQ: VOD ) �is believed to have increased its offer for Kabel Deutschland following a rival bid from�Liberty Global� (NASDAQ: LBTYA ) .
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