Discovery Communications: Timely And Possibly Cheap, But What Impact Will Secular Viewership Shift Have?
- Discovery is a differentiated business by nature with a business model conducive to competitive advantages.
- The company is in able hands despite the retirement of its Chairman and Founder, with John Malone controlling 22% of voting rights.
- It is better positioned than peers for a decline in television/cable viewership, but vulnerable to this trend nonetheless.
- The market seems to be pricing in substantial growth and the company may be able to achieve such growth and then some.
- The stock seems timely from a look at the 6-12 month chart, but is too far, too fast off its 1 month low.