by Marc Lichtenfeld, Advisory Panelist
You ready for a good ol' 1960s rock "n' roll flashback, courtesy of four lads from Liverpool?
Amid a buzz of publicity, yesterday was the day that many Beatles fans had eagerly waited for, with the release of a new video game in the band's name – "The Beatles: Rock Band."
If you're not familiar with the "Rock Band" concept, it's a bit like karaoke, except you play music in addition to singing. Gamers follow along with their favorite musicians/songs, using an electronic drum kit and guitar, and sing the songs, too.
The game is enormously popular, having generated over $1 billion in revenue. And gamers can download individual songs, albums, or catalogs of groups like AC/DC, The Who and The Grateful Dead. So far, they've paid for and downloaded over 40 million songs…
Both Paul McCartney and Ringo Starr were part of the creative process and have endorsed the game in the ensuing media hype that developed.
But what about you and me? Well, while we might never be as wealthy as the "Fab 4," perhaps we can profit from a new wave of Beatle Mania.
These "Fab Four" Stocks Are Set for a "Beatle Boost"
Let's take a look at four companies that could make big bucks off the The Beatle's Rock Band release…
- Viacom (NYSE: VIA.B): This firm should be the biggest beneficiary of the game's success. Its MTV unit owns Harmonix Music Systems, the creator of "Guitar Hero" and several "Rock Band" titles, including "The Beatles."
Viacom also owns cable TV staples such as Comedy Central, VH1, Nickelodeon and CMT. In addition, it produces and distributes movies through its Paramount Pictures division.
However, Wall Street likes Viacom about as much as conservatives liked Paul, John, George and Ringo's mop-top haircuts in the 1960s. Analysts currently have eight "Buy" recommendations on the stock, 17 "Holds" and eight "Sell" ratings.
Keep in mind that most analysts rate stocks as "Buy." A "Hold" essentially means sell, while an outright "Sell" rating means "this stock is so bad, even we don't want the firm's investment banking business."
And note that Wall Street analysts have a horrendous track record when it comes to rating stocks.
So given my contrarian nature, I like stocks that have lots of "Hold" and "Sell" ratings, since analysts are often behind the curve and afraid to go against the grain. When a company turns around, they're then forced to upgrade the stock and that often leads to gains in the share price.