Sunday, February 05, 2012

How to Invest in the Super Bowl

This year, the American Football Conference [AFC] champion New England Patriots and the National Football Conference [NFC] champion New York Giants are in the Super Bowl XLVI held at Lucas Oil Stadium in Indianapolis. The game used to be a popular indicator of the future of the stock market. The indicator states that if the NFC team wins, we will have a bull market this year, but if the AFC team wins, it will be a bear market. The indicator has been correct about 80% of the time.

Corporations are shelling out $3.5 million for a 30 second television commercial. Most of the companies that have chosen to advertise during the Super Bowl XLVI broadcast are publicly traded stocks, so if you think these companies will benefit from this advertising, now is the time to take a closer look at them and get a touchdown with your picks. Here is a list of the advertisers along with their stock ticker symbols.

Toyota ( TM ) has a couple commercials promoting its Toyota Camry, plus a Lexus ad. Toyota trades at 11 times forward earnings and yields 1.2%.

General Motors ( GM ) advertises the Cadillac, plus it is really pushing various Chevy brands including the Chevy Volt, the Chevy Silverado, and the Chevy Sonic through three different Chevrolet commercials. GM has a forward price to earnings ratio of 7 but does not pay a dividend.

Anheuser-Busch Inbev (BUD) is marketing Bud Light beer though its commercial. The stock has a forward PE of 15 and yield 1.5%.

Pepsi ( PEP ) tries to show how Pepsi MAX is better than Coke Zero. Pepsi pays a nice yield of 3.1% and trades at 15 times forward earnings.

E*TRADE ( ETFC ) used the famous baby to promote the E*TRADE's new 360 investing dashboard. The stock has a forward price to earnings ratio of 13.

Groupe Danone ( DANOY ) is the company that makes Dannon Oikos Greek Yogurt, another Super Bowl advertised product. The stock has a forward PE of 16.

Bridgestone ( BRDCY ) is another advertiser. The stock has a price to earnings ratio of 12.

Honda ( HMC ) is pushing its Acura NSX and Honda CR-V. The stock has a forward PE of 9 and a CD beating yield of 2%.

Procter & Gamble ( PG ) is publicizing its Downy Unstopables product. It trades at 15 times forward earnings and has a fairly high dividend payout of 3.3%.

Coca-Cola ( KO ) has its 'Polar bears like Coke' commercials. Coke yields 2.8% and trades at 17 times earnings.

Skechers ( SKX ) is promoting, guess what, Skechers. The stock has a forward PE of 28.

If you like interesting stock lists like this one, don't forget to check out the other lists available at WallStreetNewsNetwork.com.

Disclosure: Author owns TM and PEP at the time the article was written.

Super Bowl is a registered trademark of the NFL.


By Stockerblog.com

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