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In this segment of the Motley Fool Money podcast, host Chris Hill asks Motley Fool senior analysts Aaron Bush, Ron Gross, and Matt Argersinger which companies they have their eyes on this week and why. They've chosen private equity manager KKR (NYSE: KKR), wrestling entertainment icon WWE (NYSE: WWE), and ski resort operator Vail Resorts (NYSE: MTN).
A full transcript follows the video.
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This video was recorded on Oct. 5, 2018.
Chris Hill: Let's go to our man behind the glass, Steve Broido. He's going to hit you with a question as we get to the stocks on our radar. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: It's just a radar stock for me, it's a recent recommendation by Fool analyst Mike Olson. It's KKR, Kohlberg Kravis and Robert, some of you may remember it as. The ticker symbol is... KKR. One of the world's top private equity investment managers. Really remarkable long-term track record. Employees own more than 40% of the stock. I like to think shareholders and employees are nicely aligned there. Stock is $27 a share. My friend Mike thinks that could be worth $36 a share. It has a 2.4% dividend yield at the moment. So, it's something I'm taking a look at.
Hill: Steve, question about KKR?
Steve Broido: How do I evaluate a company that's business is owning and managing other companies?
Gross: Based on that track record, what kind of after tax and fee returns are they putting up for their investors?
Hill: Aaron Bush, what are you looking at this week?
Aaron Bush: My stock is WWE, ticker WWE. I think there's a trend. I hope Matt doesn't ruin it.
Matt Argersinger: I'm going to ruin it!
Bush: Aw! I took a look at this stock recently and I was really impressed. First of all, I didn't realize just how huge and growing this brand was. The numbers it generates on TV are impressive. It upsells to its network really well. It's one of the most popular YouTube channels in the world. Its toys sell better than Marvel and Star Wars.
Hill: What?!
Bush: Yeah! But what blew my mind the most was, in June, they renegotiated or renewed their domestic TV rights for 3.6X the rate they were doing before. That's a snap-your-fingers, instant multi-bagger moment. They're continuing growing overseas. They have new contracts up for renewal. I have a feeling we're going to see more moves like that. The explosiveness isn't over.