The Real Winners of Mayweather McGregor Fight

CBS will broadcast the fight on radio while its subsidiary, Showtime charges $100 for pay-per-view

The real winner of Mayweather vs McGregor. See Stockwinners.com to read more

Tonight’s matchup between Floyd Mayweather and Conor McGregor has been called the “The Money Fight.” You may ask why?  The $99.95 high-definition price tag on CBS Corp.’s Showtime is the highest ever charged for a pay-per-view event. CBS (CBS) expects about 4.9 million viewers will sign up for the broadcast.

It is the most distributed event in pay-per-view history. It will be shown in in over 200 countries on pay-per-view.

WINNERS

CBS has deals with other companies to show the fight live. Buffalo Wild Wings (BWLD) will show the fight at most of its 1,220 restaurants. Stocks of BWLD and CBS are probably worth watching more than the fight itself!

It is estimated that  $700 million revenue will be generated from pay-per-view buys, ticket sales and other sources of income, according to sources. By comparison, Mayweather’s record-breaking match with Pacquiao in 2015 raked in an estimated $600 million. And let’s not forget tickets to the T-Mobile Arena, sponsorships, simulcast rights, merchandise and the many peripheral activities — gambling, hotel stays, meals — leading up to the big day on the Las Vegas Strip.

Japan’s boxing fans can view the fight with their smartphone and a $15 subscription to DAZN, a UK-owned sports streaming service that’s seeking to turn sports nuts into cord cutters.  This is a new business model for pay-per-view.

“Mayweather vs. McGregor truly is a unique event and I doubt there will ever be one quite like it in the future,” said CEO of DAZN James Rushton. “We are analyzing how fans react to having this fight on DAZN and will evaluate if it’s something we want to continue doing in the future.”

Floyd Mayweather is expected to have a $300 million payday while McGregor is set to earn anywhere from $50 million to $100 million, according to various estimates.

[youtube https://www.youtube.com/watch?v=8oXy51JvkFY&w=640&h=360]

The last time Mayweather lost was in 1996, in a highly controversial decision at the semi-finals of the Atlanta Olympic Games, to Bulgarian Serafim Todorov. Even the Egyptian referee for the fight assumed Mayweather had won and held Mayweather’s hand aloft just as Todorov was announced as the winner.  It would seem a mistake to bet against Mayweather now!

LOSERS

The biggest loser of the night will be HBO and its parent company Time Warner or soon to be AT&T (T).

With no real challengers remaining in boxing this year, Mayweather turned to the UFC and its biggest star, Conor McGregor. According to insiders, he timed the announcement and staged the fight in a manner designed to deal maximum damage to his former network partner, HBO, and two of their biggest pay-per-view fights of 2017.

Begin with the choice of an Aug. 26 fight date. “It’s perverse,” tells Bloomberg Jim Lampley, HBO boxing’s longtime commentator. “If there’s one indelible, accepted principle in operating pay-per-view, it’s ‘never before Labor Day.’

That’s why, for the upcoming HBO bout between middleweight titleholder Gennady Golovkin and former champ Canelo Alvarez—one of boxing’s best tilts, on paper, in years—the channel jumped on Sept. 16 to maximize the number of pay-per-view buys, assuming that Showtime would choose a later date in the fall for Mayweather-McGregor.

Instead, Mayweather-McGregor was set for Aug. 26, creating a tidal wave of publicity that is currently drowning the lead-up to the Canelo-Golovkin fight.

ODD MAKERS

The action is reflected in the odds, which bookmakers adjust either way as money comes in on the two fighters. Bookmakers have been lowering the odds steadily since the fight was announced, but even that hasn’t stopped the deluge of McGregor bets.

The big bettors are putting their money on Mayweather, who is 49-0 as a pro. But so many McGregor fans are betting small amounts that the betting slips were running 18-1 in the Irish fighter’s favor. McGregor fans have flooded sports books with $100 bills backing the mixed martial arts fighter, and even a late surge of money on Mayweather might not be enough to balance the books.

A fight that began with Mayweather an 11-1 favorite is now 5-1 or even less in some sports books.

Should McGregor somehow manage to knock out Floyd Mayweather Jr. in the early rounds Saturday night, Las Vegas’ bookmakers would lose millions of dollars in the biggest single event loss in the history of sports betting, according to Fox Business


Floyd Mayweather vs Conor McGregor

Date: Saturday, Aug. 26, 2017
Time: 9 p.m. ET
Location: T-Mobile Arena in Las Vegas


STOCKWINNERS

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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Changes to S&P 100 and 500 Indices

S&P announces changes to S&P 100, 500 indices

Stocks to buy, stocks to watch, upgrades, downgrades, earningsS&P Dow Jones Indices will make the following changes to the S&P 100 and S&P 500 indices:

Quintiles IMS Holdings (Q) will replace Whole Foods Market (WFM) in the S&P 500 effective prior to the open on Tuesday, August 29.

S&P 100 & 500 constituent Amazon.com (AMZN) is acquiring Whole Foods Market in a deal expected to be completed on Monday, August 28.

S&P 500 constituent Charter Communications (CHTR) will replace E. I. du Pont de Nemours and Co. (DD) in the S&P 100, and SBA Communications (SBAC) will replace E. I. du Pont de Nemours in the S&P 500 effective prior to the open on Friday, September 1.

S&P 100 & 500 constituent The Dow Chemical Company (DOW) is acquiring du Pont in a deal expected to be completed after the close on Thursday, August 31.

Post-merger, the combined company, which will change its name to DowDuPont and trade under the ticker “DWDP“, will remain in the S&P 100 & S&P 500.

S&P 100 INDEX

The S&P 100 Index is a stock market index of United States stocks maintained by Standard & Poor’s.

Index options on the S&P 100 are traded with the ticker symbol “OEX”. Because of the popularity of these options, investors often refer to the index by its ticker symbol.

The S&P 100, a subset of the S&P 500, includes 102 (because two of its component companies have 2 classes of stock) leading U.S. stocks with exchange-listed options.

Constituents of the S&P 100 are selected for sector balance and represent about 63% of the market capitalization of the S&P 500 and almost 51% of the market capitalization of the U.S. equity markets as of January 2017.

The stocks in the S&P 100 tend to be the largest and most established companies in the S&P 500.

S&P 500 INDEX

The Standard & Poor’s 500, often abbreviated as the S&P 500, or just “the S&P” is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

The S&P 500 index components and their weightings are determined by S&P Dow Jones Indices. It differs from other U.S. stock market indices, such as the Dow Jones Industrial Average or the Nasdaq Composite index, because of its diverse constituency and weighting methodology.

It is one of the most commonly followed equity indices, and many consider it one of the best representations of the U.S. stock market, and a bellwether for the U.S. economy.


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Survey Shows Netflix is Fine without Disney

Analyst sees Disney loss having minimal impact on Netflix subscribers

Disney loss having minimal impact on Netflix subscribers. See Stockwinners.com Market Radar to read more

Although Netflix (NFLX) shares slipped following Disney’s (DIS) announcement that the company was ending its distribution agreement with the former, Piper Jaffray analyst Michael Olson told investors that he believes the loss will have a minimal impact on the streaming service subscribers.

SURVEY SAYS

In a research note to investors this morning, #Piper #Jaffray’s Olson says Disney ending its agreement for distribution of certain content is a negative headline, but it will have “minimal impact” on Netflix.

This follows his firm survey of over 500 U.S. Netflix subscribers, asking what percent of their Netflix time is spent on Disney.

The analyst pointed out that Piper found that “only” around 20% of subscribers spend greater than 10% of their Netflix time viewing Disney content.

Further, he expects “almost none” of the remaining 80% of subscribers to cancel due to the loss of Disney.

The 20% of heavier Disney viewers are unlikely to cancel unless Disney accounts for a larger portion, greater than 40%, of their Netflix viewing time, Olson contended.

While #Olson recognized the strength of Disney’s content, particularly for younger children, the analyst noted that he believes Netflix can license similar genre content from other sources and/or use the cost savings for original programming.

Netflix is likely already in the process of determining how to effectively reallocate funds previously earmarked for Disney, he said, adding that the company has nearly 18 months to plan for this change. The analyst reiterated an Overweight rating and $215 price target on Netflix’s shares.

ENDING AGREEMENT

Last week when Disney reported third quarter earnings, the company announced that it will launch its ESPN-branded multi-sport video streaming service in early 2018, followed by a new Disney-branded direct-to-consumer streaming service in 2019. Additionally, Disney said it will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with the 2019 calendar year film slate.

PRICE ACTION

In Monday morning trading, shares of Netflix have dipped 0.66% to $170.27, while Disney’s stock is fractionally up to $102.20.


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.


 

The Fear Index Soars as Stocks Tumble

U.S. VIX Volatility Surges over 30% to clear 15.00

Buying Opportunity for Some Stocks this afternoon

VIX surges over 30% to above 15.00. See Stockwinners.com Market Radar to read more.

U.S. VIX (VIX) equity volatility surged over 30% to briefly clear 15.00 en route to 15.36, a 3-month highs after taking out 15.16 from June 29th, having cleared the 11.98 or its 200-day moving average earlier this week.

The spikes in the VIX represent a market sell-off.

That puts the double top near 16.30 from April/May within reach, ironically after recent rounds of trader layoffs in the financial sector due to persistently low volatility.

A breakout higher amid record speculative VIX short interest could put 23.01 November 2016 and 26.72 from July 2016 in scope.

Pullbacks will eye 11.98 and 11.56 session lows for support, along with all-time lows of 8.84 from July 26.

U.S. VIX equity volatility surges, See Stockwinners.com Market Radar

The S&P 500 (SPX) meanwhile is fast approaching its 2,448.3 or it’s 50-day moving average support line, which has provided investors a buying opportunity for the past several months.

It appears that investors may forgive legislative impasse, but are less generous about a nuclear war!

NASDAQ is off 1.2% and the Euro Stoxx 50 is 1.2% lower.

REBOUND POSSIBLE

Based on the charts show above, we expect the sell-off to continue into late afternoon on Thursday with a recovery into close, followed by a short-covering rally on Friday August 11th. Use this afternoon sell off to buy stocks that should be sold on Friday.

STOCKS TO WATCH

NFLX, EXEL, TTD, XXII, NVDA, AAPL, PEGA, SINA, SQ, USCR, YY.

STOCKWINNERS

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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

RingCentral is For Sale

RingCentral could be acquired for mid $50s per share, says SunTrust 

RingCentral could be acquired for mid $50s per share. See Stockwinners.com Market Radar to read more

After Bloomberg reported that RingCentral (RNG) had hired an adviser after drawing buyout interest, SunTrust analyst Terry #Tillman says the company could be acquired for a price in the mid $50s per share range ” if the company’s value proposition is viewed as a knowledge worker/business productivity platform versus simply business phone systems.”

The analyst recommends that investors focused on the company’s fundamentals own the stock. “based on strong top-line growth and expanding margins and cash flow.”

RingCentral could attract interest from technology-focused private equity firms and other cloud-based software providers, two of the people said. RingCentral may choose not to proceed with a deal, the people said, asking not to be identified as the details aren’t public.

RingCentral last week reported second-quarter revenue of $119.4 million, up 30 percent from the same period a year ago.

The company, which went public in 2013, runs a platform that connects devices for corporate clients, allowing them to link employees’ smartphones, tablets, desktop computers and landline telephones to communicate via voice, text and fax.

It generates most of its revenue from subscriptions, including those sold through resellers including AT&T Inc.

Note that Stockwinners featured RNG at $36.50 and closed the position at $42 yesterday.

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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

 

Altice is Interested in Charter

If a deal goes through, Charter could fetch over $470 a share

Altice is Interested in Charter. See Stockwinners.com Market Radar for details

Altice (ATUS), the cable and telecoms group controlled by Franco-Israeli billionaire Patrick Drahi, is lining up a potential $185 billion bid for Charter Communications (CHTR), the second-largest US cable company, according to the FT.com.

The move highlights an expected wave of consolidation in the industry as cable companies enter the wireless business and also look for additional ways to cut costs and grow as more U.S. consumers are cutting their cords.

Altice USA’s initial public offering in June was viewed as a means for Altice to expand into U.S. cable empire by giving the company public stock it can use as currency for new acquisitions.

In May, #Drahi told reporters that he considered cable expansion a priority, followed by mobile and content.

Altice is working with banks to finance the deal through cash and equity, a source said.

Buying another cable company would give Altice USA, currently the fourth-biggest U.S. cable provider, the opportunity to build more scale and cut costs in the United States. Altice completed its $17.7 billion acquisition of Cablevision last June, after buying Suddenlink for $9.1 billion in 2015.

CHTR last traded at $398.45. ATUS  last traded at $30.95.

STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners. Stockwinners offers stock picks, option picks, daily stock upgrades, stock downgrades, and earnings reports that are delivered to your email.

This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.