2 stocks that should lead a 2013 rally
These companies are on their way to building global empires of cross-space dominance.
By Rocco Pendola
I like companies that carve out niches that just so happen to be the size of empires.
Amazon.com (AMZN) -- now there's the perfect example. Evidence continues to show that, after all these years, nobody has been able to come close to eroding, let alone ending, Amazon's e-commerce dominance.
I like the stock in 2013 -- just like I did in 2012 -- but I can't go on record with the prediction of a double. Even if the world cooperates, AMZN likely will not double.
However, I anticipate both stocks highlighted in this article will battle macro uncertainty and outperform the market big time in 2013.
News Corp. (NWSA). I've been writing about NWSA all year long. If I could own only one stock -- for the record, with the exception of TheStreet (TST), I cannot own any -- NWSA would be it. There might not be a better developing situation in the market.
Put the puzzle pieces together.
As I wrote in a story on TheStreet when News Corp. purchased a stake in Yankees Entertainment and Sports (YES), Rupert Murdoch continues to extend his company's news, sports and entertainment empire.
It went under the radar the other day, but News Corp. snagged another regional sports network (thanks, Bloomberg) -- SportsTime Ohio, which airs Cleveland Indians baseball. Fox Sports locked up the rights for more than a decade at a cost of $40 million per year.
Of course, Fox has for a while had a stable of regional sports networks. And the YES deal allows it to eventually take complete control of that network. These little bits-and-pieces deals will not raise regulatory antennas. Expect Murdoch to keep closing them. Say what you want about Rupert, but don't tell him to put that coffee down.
And then, bang, he'll up the ante.
I expect Murdoch to get his claws on, at the very least, interests in as many professional sports teams as he can in as many leagues as he can. Even if it's only 49% of the Yankees and a flat takedown of Madison Square Garden (MSG), he will not stand still. In this new media business you can't stand still.
News Corp. will get as close as U.S. regulatory hacks will let it to a carbon copy of what Rogers Communications (RCI) and BCE (BCE) have going for them in Canada.
In a few months, News Corp. will spin off its money-losing, soul-sucking publishing segment. The value gets unlocked.
Apple (AAPL). If I'm wrong about AAPL, I'll take all sorts of hell for it. I'm willing to put myself out there.
Remember, in the words of John Kerry, I voted against Apple before I voted for it. I rang a warning bell about the outlook in a post-Steve Jobs world. But Wall Street analysts and the financial media hijacked my analysis.
At some point, Washington will at least temporarily release us from its incompetent shackles. That will set off a rally. If Apple, particularly with holiday quarter earnings due in late January, doesn't lead that rally in a big way, I might end up telling you to dig a hole and stuff your cash in it.
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