- Summary: Investment columnist James Stewart wonders if AOL's recent move to provide free access to the bulk of its online content can jumpstart Time Warner stock, after its prolonged flatlining between $16-19. Stewart has personally lost thousands of dollars in expired TWX call options over the years, but still believes investors are unfairly valuing Time Warner, punishing it for its 'old' media properties Time Inc., HBO and Warner Brothers and its cable business (which accounts for 25% of its revenues and 1/3 of its profits). Stewart believes the bundled cable/internet service that Time Warner offers may ride the HDTV boom and spur growth, but in the meanwhile, he's hedging his bets -- he owns Verizon (VZ) and AT&T (T) stock as well.
- Comment on related stocks/ETFs: Key background on AOL's proposed free content strategy can be found here and here. See also Time Warner's latest conference call transcript - and we'll publish this quarter's soon after it's held as well.
Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):