The Walt Disney Company (DIS), Time Warner Inc (TWX), Starz (STRZA): And The Winners Are…!!!

Here’s To The Losers

There are always a few upsets at the Oscars that keep people yawning unitil the very end. This year, the Oscars closed with Kristin Chenoweth and  Seth McFarlane singing “Here’s To The Losers, Bless Them All,” which ought to be the signature sendoff from now on.

But perhaps Weight Watchers International, Inc (NYSE:WTW) spokeswoman Jennifer Hudson should have sung that tune. She really gave Weight Watchers some street cred, showcasing her new slimmer figure as she sung a hit from Dreamgirls.

The stock might see a short lived post-Oscar bump, as I imagine Hudson inspired a lot of weight-conscious women to sign up for a meeting. The “Here’s To The Losers”song might have a double meaning for Weight Watchers, since it recently plunged 20% after its latest earnings release.

The first part of the year is generally a good time for weight-management stocks, but that didn’t help Weight Watchers this time, with huge debt and lowered guidance due to declining attendance, increasing competition, and poor returns from an expensive marketing campaign.

At a 10.35 P/E and a 1.60% yield, Fool Brian D. Pacampara thinks a turnaround at Weight Watchers might be worth a look, however. At the Feb. 14 earnings release, CEO David Kirchoff admitted that the company’s move to attract male customers wasn’t working as well as hoped, and that Weight Watchers intended to move marketing dollars elsewhere. Since their online membership is improving, that may be a good target for those dollars, making the Internet an even better profit driver going forward.

And the winner is…

Of course, it’s an honor for these stocks to be nominated, but the interesting ones might be the John Malone-related stocks, Starz and Liberty Media, as well as Time Warner Inc (NYSE:TWX). Disney has had such a huge run over the last two years, and the valuation of the other candidates above, even Weight Watchers, is better.

The article And The Winners Are…!!! originally appeared on Fool.com and is written by AnnaLisa Kraft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.