Apple Should Buy Disney Redux

Forget about all that talk of dividends, buybacks, and preferred shares – Apple should step up and buy Disney. It’s not a an original idea, but it’s a relevant topic with the Apple growth engine sputtering just a bit.

1. Content

The combination of Marvel Comics, Star Wars, classic Disney films, Pixar, Touchstone, ESPN, ABC and more make the House of Mouse a content factory which can’t be found anywhere else with the possible exception of Sony and Time Warner. Of the three, Disney has the properties with the most potential as the Avengers and Star Wars franchises look set to explode and ESPN is a ratings and advertising juggernaut.

2. Theme Parks spinoff

Though Apple is sitting on a pile of cash that exceeds the GDP of most countries, an acquisition of Disney would still be expensive (market cap + 20% premium = $116B). A spinoff of the Theme Parks segment would reward investors with an attractive dividend-payer to complement their tech/media holding.

3. Cord cutting/Apple TV

If any company could pull off the trick of taking cord-cutting mainstream if would be an Apple-Disney combination. Could you live with a TV that streamed ESPN, ABC, Netflix and any shows/movies you wanted through iTunes which would also allow you to cut out the obligatory Dish Network/Comcast/Time Warner/Verizon/DirecTV/Charter provider contract? Hmmm.

4. Disney Interactive

This is the wildcard in the mix. Currently it’s just a unit which distributes multi-platform video games and global interactive entertainment, but Disney Interactive has the potential to totally disrupt the gaming market with the arsenal of franchise characters it has at its disposal. By all accounts, the business could use a fresh infusion of creativity and talent. Surely Apple could pitch in here.

Will it happen? Probably not. Would Disney’s board even approve a buyout? Probably not. But with the Steve Jobs estate owning 8% of the company’s stock maybe the idea doesn’t get tossed off the board’s agenda entirely.

Via Bloomberg, Seeking Alpha, CNBC

Restaurants Stocks in 2013: Promotions and Commodity Prices Set to Pinch Margins

Margin pain on the menu: Restaurants could get squeezed this year from a combination of higher commodity costs and frugal consumers. Though traffic is forecast to rise 3%, the average ticket is expected to decline 4.7% with coupons, promotions, and discounts gaining favor. Chains that are expected to ride out the expected tough environment are those that can deliver healthy food fast. Chipotle (CMG), privately-held Subway, and Panera Bread (PNRA) fit the bill.

Stocks to watch: McDonald’s (MCD), Jack-in-the-Box (JACK), Sonic (SONC), Cracker Barrel (CBRL), Buffalo Wild Wings (BWLD), Wendy’s (WEN), Burger King (BKW), Chili’s & Macaroni Grill (EAT), IHOP and Applebee’s (DIN), Ruby Tuesday (RT), and Bob Evans (BOBE).

Via Reuters and Seeking Alpha.

Are Beer Stocks Tapped for Gains in 2013?

Latest News:

Anheuser-Busch InBev will introduce two beers this year with 6% alcoholic content – compared to the 5% average of its leading brands – after last year’s launch of higher-alcohol Bud Light Platinum went well. The key question from analysts over the strategy is whether the new beers – Beck’s Sapphire and Budweiser Black Crown – will steal store shelf space from rivals or cannibalize other A-B products?

State of the Industry:

Beer shipments in the U.S. rose around 1.9% in 2012 after falling in 2011. Though craft beer sales only account for 6% of the market by volume, the double-digit pace of growth from craft brewers easily outpaces major players A-B InBev, MillerCoors, Heineken, and Boston Beer Co. Latin America and China will be a focus in 2013 as will the ripple effect of the Grupo Modelo purchase by A-B InBev.

Beer stock performance (52-week return)

Anheuser-Busch InBev (BUD) +44.8%

Boston Beer (SAM) +36.5%

Diageo (DEO) +34.6%

Craft Brew Alliance +11.0%

SABMiller (SBMRY) +1.90%

Molson Coors (TAP) -4.91%

Yields on beer stocks

Molson Coors (TAP) +3.00%

Diageo (DEO) +2.39%

SABMiller (SBMRY) +1.90%

Anheuser-Busch InBev (BUD) 1.78%

Boston Beer (SAM) 0.00%

Craft Brew Alliance 0.00%

The leading brands of the major beer companies:

Anheuser-Busch InBev (BUD) – Budweiser family, Michelob, Busch, Rolling Rock, Natural

Boston Beer (SAM) – Samuel Adams: Boston Lager, Boston Ale, Black Lager, Irish Red.

Diageo (DEO) – Guinness, Red Stripe, Kilkenny, Tusker.

Craft Brew Alliance (BREW) – Redhook, Kona, Widmer Brothers, Omission

Molson Coors (TAP) – Coors Light, Blue Moon, Carling, Miller Lite, Miller High Life Molson, Keystone Light, Amstel Light, Killian’s Irish Red.

SABMiller (SBMRY) – Grolsch, Fosters, Carling Black Label, Icehouse, + Miller family under joint venture with Molson Coors

Via St Louis Post Dispatch, Seeking Alpha, Google Finance

Will Disney and Apple Join Forces in the Gaming Market?

Disney filed a patent application that has tech and media sites buzzing with speculation. The patent covers a process to animate real videos or pictures to create an augmented reality when viewed with an enabled device. Not only are enthusiasts drooling that the move could be the first step to Disney’s mythic Toy Box gaming console, they are also quick to note the cozy relationship Disney has with another company potentially looking to dip into the gaming market – Apple.

Full speed ahead for the House of Mouse.

Via CNET.com, U.S. Patent & Trademark Office, Seeking Alpha

Best Financial Websites in 2013 for DIY Investors

Do-it-yourself investors have more online tools than ever to help motivate them to ditch their stock broker or financial planner. Listed below are some of the best financial websites on the web – in some cases a bit below the radar – to bookmark and use in 2013.

Wikinvest

A portfolio manager that goes beyond using algorithms to make portfolio recommendations by utilizing curated user-generated content, while still beating the other financial portals at the basics.

Website: www.wikinvest.com Twitter: @Wikinvest

Estimize

An open source platform for matching wits with other traders on earnings numbers. A great way to test theories or jump on the bandwagon with members able to consistently beat sell-side analysts.

Website: www.estimize.com Twitter: @Estimize

Zero Hedge

The quickest way to cut through all the Fedspeak, rampant economic analysis, and stock market shenaningans. According to ZH, “on a long enough timeline the survival rate for everyone drops to zero.

Website: www.zerohedge.com Twitter: @ZeroHedge

MomentumIndex

A slick way to keep tabs on start-ups and emerging private technology companues.

Website: www.momentumindex.com Twitter: @MomentumIndex

Zillow

Though a larger player than the rest of the names on this list, this website contains a wealth of information on real estate and mortgages to help make intelligent financial decisions. No need for a mortgage broker if Zillow is utilized correctly.

Website: www.zillow.com Twitter: @Zillow

More to watch:

Simple – A true virtual bank with cutting edge web and mobile applications. Funds held at FDIC-insured partner bank.

dealReporter – Market intelligence and breaking stories without the Bloomberg terminal.

SumZero – The collective wisdom of the hedge fund community curated online.

SmartyPig – The best online source for setting up a social savings account. 1% on savings and cash back offers as high as 11%. Funds FDIC-insured.

Seeking Alpha – Live stock market news and analysis.

MoneyRates – Updated rates on bank deposit products and personal finance advice.

Jemstep – Real-time portfolio analysis and recommendations with a cleaner platform than rivals. Still in beta, but one to watch.

Loyal3 – Buy stock directly from companies for as little as $10.Quick, clean, and note for a true buy-and-hold investor looking to make it hard to sell off a knee-jerk reaction to news or sentiment.

Insider Monkey – Rich, edgy analysis on what the insiders are doing with their money.

Look at this Instagram Investment

Facebook bought Instagram for $1B in stock (now $715M) in a costly move for a property with no revenue. The bull case: Analysts thinks the mobile app can generate between $500M to $700M over the next three years to pay for the deal quite neatly. The bear case: Instagram is a fad for 14-year old girls lacking significant purchasing power. Just watch this video and see if a cool billion seems right:

Sources: CNET.com, CollegeHumor.com, Bloomberg

Wal-Mart: The Indestructible Force of Nature

Teflon stock? Neither rain, nor sleet, nor a few bribery scandals and labor protests stays Wal-Mart from trading at lofty heights. Even the prospect of the U.S. falling over the fiscal cliff doesn’t scare off most analysts from the Wal-Mart trade with the firm’s sales tilting to the right side of the discretionary vs. non-discretionary axis. The juggernaut accounts for +10% of all retail and showed its scale by hitting a peak rate of 5K transaction/second during the Black Friday rush. Shares still have the legs to run to $87, according to Citi’s Deborah Weinswig.

Current Price = $69.99

P/E ratio = 14.38

Gross Profit = $28.412B

Profit per share = $8.45

Dividend Yield = 2.27%

Via Seeking Alpha and Citi Investment Research