Pandora Leads Monday’s Hot Stock Watch

Pandora (NYSE:P), the internet radio company and subject of web 2.0 mega-hype leading up to its IPO, had notoriously stumbled out of the gates in its public debut. After a stellar first twenty four hours on markets when share prices peaked at over $26 (the IPO opened at $16), the company gradually began to slide, bottoming out at just over $13. Since then the stock has rebounded nicely, and is gaining serious traction today, edging back over its IPO price of $16 at a gain of 8.33%. Investors are looking to discern whether the company will capitalize on recent momentum or will ease back in the direction of its trading lows. SeekingAlpha chimes in on the discussion, calling the stock a “wild card” with the up-side a growth buy, “That’s why buying Pandora isn’t about the financials; it’s about the structural change it has caused in the society we live in today,” and the low-side a spec. sell at best, “buying Pandora looks no different from buying some early stage biotech not even close to submitting a drug for FDA drug approval but promises to be developing the next miracle drug.” For any investor interested in the likely fate of similar web 2.0 “growth” prospects, close attention to this company, a likely bellwether of coming IPOs, is certainly warranted. Pandora IPO Drawing a Mixed Set of Listeners>>

Disney (NYSE:DIS), is doing alright by its own merits today, trading up 1.54% so far on news of analyst upgrades and surprising product resilience. Despite being lambasted by critics, the company’s latest feature film “Cars 2” was well-received by audiences, taking in a show-stealing $68 million in its opening weekend. Three analysts today, Miller Tabak’s David Joyce, Wunderlich’s Matthew Harrigan, and Nomura’s Michael Nathanson all issued statements reaffirming a “buy” position on Disney, listing short-term price targets of $48-50 for the stock. DIS is currently trading at $38.20. Competitors to Watch: News Corporation (NASDAQ:NWSA), Time Warner Inc. (NYSE:TWX), Comcast Corporation (NASDAQ:CMCSA), Journal Communications, Inc. (NYSE:JRN), Cumulus Media Inc. (NASDAQ:CMLS), Scripps Networks Interactive, Inc. (NYSE:SNI), Entravision Communication (NYSE:EVC), and Entercom Communications Corp. (NYSE:ETM)

CBS (NYSE:CBS), joins our list of media company’s on fire today, with shares up 2.31% at last check. The good day for CBS comes as something of a counterpoint to recent statements by UBS (NYSE:UBS) analysts, indicating that they plan to downgrade ratings of the entire American entertainment sector. From the UBS report, “A slowing third-quarter scatter market, less pricing power and the potential for scatter over scatter to be down by the fourth-quarter 2011 or first-quarter 2012 are causes for concern. Due to the potential for programing cost pressure following ratings softness at some networks, our decremental margin assumption is in the 50-60 percent range.”

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