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Where to Invest in an Election Year |
Mark Meyerowitz,Owner,
Meyerowitz Investment Management
Mr. Meyerowitz has been investing since high
school, in the 1970s.
After graduating from Brandeis University in 1977; Mark built up his small family business into a large local retailing company.
From the mid 1990s to early 2003, Mark was a broker with Smith Barney and with Edward Jones; two of the largest invest firms in the nation.
Mark and his family have lived in West Orange, NJ since 1987.
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 If you follow the news,
you know that the Presidential election of 2008, which is
still 1 ½ years away, is in full force. Elections are now
big business. Consultants are hired, lobbyists for every type
of influence seeking groups are hired, and tons and tons of
money are spent on advertising.
Is it a coincidence that media stocks have suddenly become the coveted object of corporate takeovers? Newspapers are being bought out. There are rumors that the NY Times will be up for sale. Dow Jones, publisher of the Wall Street Journal, has received a very handsome, unsolicited buyout offer. Media is hot. This is due, in large measure, to the flood of cash generated by our election system.
So what should an investor do to take advantage of the sudden infatuation with media?
One area of the media which has not received much attention yet is television. General Electric owns NBC, and Disney owns ABC, while Fox is owned by News Corp.
However, I would prefer to look for companies that are a "pure play" in television. GE, Disney, and News Corp. have many other businesses, so the impact that television has on the stock price may be diluted.
In the coming months, we should take a look at CBS. Another good idea is to look at Spanish language television. Spanish language television has been one of the few bright spots in the media world in the last few years. And one thing is certain: both political parties have declared that they are going after the Hispanic vote. This means that money may be flowing into the Spanish language stations in disproportionate amounts.
There are also broadcasters that own and operate television station affiliates. Some of these may be attractive investments too.
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