One of Time Warner Inc (NYSE:TWX)’s recent initiatives includes agreements with Time Warner Cable Inc (NYSE:TWC) and Cablevision Systems Corporation (NYSE:CVC), which will bring HBO GO and MAX GO to HBO’s entire domestic subscriber base. HBO GO is now available on the Xbox, Samsung TV, the Kindle Fire and Android tablets. Time Warner Inc (NYSE:TWX) has also launched HBO Netherlands, and will introduce HBO Nordic and its first premium network in India.
These are the company’s latest initiatives to help combat the rising competition from Netflix, Inc. (NASDAQ:NFLX) and Hulu. Netflix is now competing more directly with Time Warner Inc (NYSE:TWX)’s HBO by offering original content, including “House of Cards” and “Arrested Development.” Also, Hulu has seen an influx of buyout interest, with Yahoo! Inc. (NASDAQ:YHOO), Time Warner Cable and DIRECTV (NASDAQ:DTV) all making bids for the company. The purchase of Hulu by any of these companies could lead to further competition for Time Warner.
The other headwind for the stock is its 18.7 times P/E, which puts Time Warner trading inline with some of its major peers, including Comcast Corporation (NASDAQ:CMCSA) (17.8 times) and Viacom, Inc. (NASDAQ:VIAB) (17 times). Thus, with the streaming content competition and valuation, it might be worth waiting for a pull back before jumping into the stock.
The Boeing Company (NYSE:BA) remains the largest aircraft manufacturer in the world in terms of revenue, orders and deliveries. Last month, the aircraft company managed to report stellar 1Q 2013 results, with EPS coming in at $1.73, beating consensus by 17% and seeing 24% growth from prior-year quarter’s EPS.
One overhang for The Boeing Company (NYSE:BA) is the fact that its defense business accounts for around 50% of revenue. The defense budget cuts could have a negative impact on the company. However, the company has a strong defense business backlog, with a $392 billion backlog at the end of 1Q. Despite its exposure to the defense budget, Boeing could still provide upside for investors.
The Boeing Company (NYSE:BA)’s revenue is generated across more than 90 countries and the company should perform nicely on the back of a rebounding global economy. Boeing also expects U.S. and Canadian airliners to invest about $700 billion for fleet extensions over the next 20 years. The Boeing Company (NYSE:BA) had four hedge funds with the stock as one of its top-10 holdings last quarter, in addition to Viking, another big Boeing supporter was Seminole Capital (check out Seminole’s against the grain picks).
The company has also been refocusing its operations by selling off other assets. Comcast Corporation (NASDAQ:CMCSA) sold the wireless spectrum it horded through the SpectrumCo venture to Verizon Wireless for approximately $2.3 billion. As part of the agreement, Comcast will still be able to offer the 4G LTE services, which eliminates the need to install a wireless network of its own.
Fellow Tiger cub, billionaire John Griffin’s Blue Ridge Capital, was also snatching up Comcast Corporation (NASDAQ:CMCSA) shares last quarter (check out Griffin’s latest moves).
Betting on change
Another one of Viking’s newest additions was Adobe Systems Incorporated (NASDAQ:ADBE). Adobe’s key segment, making up 70% of revenue, is its digital-media segment, which enables small businesses and enterprises to create content and deliver it across diverse media. Its key customers include traditional content creators, web application developers, digital media professionals and user interface designers/developers and writers.
From a valuation perspective, Adobe is trading at a deep discount to its peers. Trading at roughly 28 times earnings, Adobe is well below the industry average of around 49 times.
Bottom line
The article This Tiger Cub Gets Bullish originally appeared on Fool.com and is written by Marshall Hargrave.
Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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