In this segment of Motley Fool Money, host Chris Hill asks senior analysts Jason Moser, Matt Argersinger, and Ron Gross to share which companies have been interesting them lately. Their responses run the investing gamut: alternative asset management firm Oaktree Capital (NYSE:OAK), sporting goods specialist Callaway Golf (NYSE:ELY), and media empire Disney (NYSE:DIS).
A full transcript follows the video.
This video was recorded on Sept. 21 , 2018.
Chris Hill: Let's get to the stocks on our radar. Steve will hit you with a question. Ron, you're up first. What are you looking at this week?
Ron Gross: I'm going to go back to Oaktree Capital, OAK. This is a stock that has not done well, year to date down 6%. That's because they are an alternative asset manager that just quite frankly does not do well in this extended bull market. They work on distressed investments, investments that typically don't go up in this type of a market. Their time will come, though. They have a stellar track record. They have a dividend in excess of 5%. When things finally go down, they will benefit.
Hill: Steve, question about Oaktree Capital?
Steve Broido: If you had to give the elevator pitch for Oaktree, what would it be?
Gross: Long-term stellar track record that will eventually benefit when the cycle turns.
Hill: Jason Moser, what are you looking at this week?
Jason Moser: In the spirit of the Ryder Cup, which starts next Friday, looking a little bit more closely at Callaway Golf, ticker ELY. For the most part, I've eschewed investing in golf altogether, with my experience in the business. It's just not the highest margin game. I'm actually more interested in Callaway's minority stake in Top Golf, which is the driving range concept that marries hitting golf balls with the social dynamic, as well. You meet your friends there for food, drinks, they have sports on TV and whatnot. There are around 41 Top Golfs today. The goal is to open another 100 here domestically, as well as 100 internationally. Already very profitable, and Callaway has about a 14% minority stake in it. They intend to continue investing in it. It's got my attention.
Hill: Steve, question about Callaway Golf?
Broido: Do people buy golf clubs online? Or is this something you need to really touch and feel and hold on to the thing to make the purchase?
Moser: That's a good question. A lot of people do buy them online, but club fitting today is more popular than ever before. Most people who are serious about the game typically go get fit for clubs before they buy them.
Hill: That means Jason doesn't buy online. That's what I take from that. Matt Argersinger, what are you looking at this week?
Matt Argersinger: I'm going with Disney, ticker DIS. We talked about it earlier in the show. The Fox acquisition is probably going to happen. It's going to muddy the waters a little bit. But ultimately, I think you have what was already the premier entertainment company in the world, but by far now the premier entertainment company in the world. I really applaud Bob Iger a year ago for essentially going all-in on streaming and really shifting the direction of the company. It was bold. We're seeing a little bit of traction now finally with that. I think the table might have turned for them. Stock trades for less than 15X earnings. I just don't think that lasts very long with a company like Disney.
Hill: Steve, question about Disney?
Broido: What was going on with that Han Solo movie? Can someone tell me? That was in the theaters, and then 10 days later, it was gone. What happened?
Argersinger: I actually didn't see the movie, and -- well, there you go, that's the problem.
Broido: No one else did, either!
Argersinger: [laughs] That's right. Can't explain it.
Hill: Disney, Callaway Golf, Oaktree Capital, you got a stock you want to add to your watchlist, Steve?
Broido: I might go golfing!
Moser: Hey, now!