Discovery (DISCA)

Discovery (DISCA) has not done much since I covered it earlier this year. The stock is up circa 20% in that time, though it has badly lagged the wider market. I have the S&P 500 gaining around 55% since that piece was published back in March. On the plus side, the company has largely proved the defensive business I thought it would. The market still…

Things look crazy out there. Whole industries – commercial airlines, hospitality and so on – look like they could go to the wall absent bailouts. Remember that Wendy’s piece I published when it was trading at $22? That was just two months ago. The stock now trades for under $11 a share. Meanwhile, Walmart stock hit an all time high earlier this week. Bizarre times.

A large portion of recent articles have been devoted to what you could call ‘deleveraging plays’. By that I mean stocks which can probably generate solid shareholder returns simply by paying down debt. Some good examples include the likes of Anheuser-Busch InBev, Molson Coors, AT&T and Kraft Heinz. There is one more I’d like to add to that list: media stock Discovery (DISCA). This is the…