Time Warner Inc (NYSE:TWX) HEFFX Highlights

Time Warner Inc (NYSE:TWX) HEFFX Highlights

Time Warner Inc (NYSE:TWX) HEFFX Highlights

  • Telecom giant AT&T’s ( T) $85 billion acquisition of cable company Time Warner ( TWX) could be completed in as little as 60 days, according to CNBC.
  • The report comes after an earlier report suggested that President Trump would not back the merger if CNN President Jeff Zucker is still in charge at the network.
  • The Department of Justice is deliberating the merger, but Trump’s public disdain for CNN is regarded as a “wild card” in the White House.

 

  • Fox News Resolves Legal Dispute Over Charter/Time Warner Cable Merger
  • Last year, the cable news network filed a lawsuit in New York state court that maintained its carriage agreement with TWC had terminated on the closing date of the merger between the two cable giants. According to the complaint, Charter attempted to use the Fox News/TWC agreement to pay lower license fees for the rebranded Spectrum service. Fox News insisted instead that the operative agreement was its direct deal with Charter. The lawsuit characterized Charter’s alternative position — and the implied proposition that Charter had been acquired by TWC — to be a “ruse” and a “fraud.”

 

  • In the latest example of new media meeting old(er) media, Snapchat owner Snap (NYSE:SNAP) and Time Warner (NYSE:TWX) have signed a collaboration agreement worth $100 million.
  • For its investment, Time Warner will get to air up to 10 original programs, produced by its Turner Broadcasting TV arm and Warner Bros. film studio, over the next two years on Snapchat. Ad revenue from the shows will be shared 50/50 between the partners. $100 million is a lot of money, even for a company as large and sprawling as Time Warner. Here’s why Time Warner thinks it’s a good investment.

Time Warner Inc. is a media and entertainment company. The Company operates through three segments: Turner, which consists of cable networks and digital media properties; Home Box Office, which consists of premium pay television and over the top (OTT) services and premium pay, basic tier television and OTT services internationally, and Warner Bros., which consists of television, feature film, home video, and videogame production and distribution. It also holds interests in companies that operate broadcast networks. The Company holds interest in Central European Media Enterprises Ltd. (CME), which is a broadcasting company that operates television networks in Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia and The CW broadcast network (The CW), which includes a lineup of advertising-supported original programming, such as The 100, Arrow, Crazy Ex-Girlfriend, DC’s Legends of Tomorrow, The Flash, Frequency, iZombie, Jane the Virgin and No Tomorrow.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 98.96.

The projected upper bound is: 102.88.

The projected lower bound is: 100.18.

The projected closing price is: 101.53.

TIME WARNER INC closed down -0.070 at 101.500. Volume was 117% above average (neutral) and Bollinger Bands were 13% wider than normal.

Open           High             Low             Close           Volume
100.980      102.450      100.340      101.500      7,161,323

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period      50-period      200-period
Close:                       100.25           99.18              94.24
Volatility:                7                      9                     17
Volume:                  4,745,583      3,654,780     4,571,101

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TIME WARNER INC is currently 7.7% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TWX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TWX and have had this outlook for the last 23 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 85.4666. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 23 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 68.45. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 48 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 159.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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