Unless you never watch TV, never listen to the news on the radio, and never look
at magazine covers, you know who Charlie Sheen is. Star of the extremely popular
TV show Two and a Half Men , earning around 1.8 million dollars an episode, he
has been in the news daily during the last couple weeks due to the disagreement
between him and the show's producers regarding the cancellation of the show.
Sheen's outspoken comments have made headlines, and he has been the guest on
several talk shows. So it is only fitting that we look at the companies that
have a connection to Charlie Sheen to see how their stocks have performed.
Stockerblog.com was the original developer and creator of numerous celebrity
stock indexes, including the Paris Hilton Stock Index , the Gisele Bunchen Stock
Index , the Heidi Klum Stock Index , and the Angelina Jolie Stock Index . Now it
is time for the Charlie Sheen Stock Index, details of which can be found at
WallStreetNewsNetwork.com . Based on the companies that have some connection to
Sheen, the Sheen Index has outperformed the Dow Jones Industrial Average, since
the beginning of this year, the beginning of last year, the beginning of 2009,
and the beginning of 2008. As a matter of fact, since the February 24 radio
broadcast of the Charlie Sheen interview hosted by Alex Jones, the Charlie Sheen
Stock Index rose 2.0% versus only 0.8% for the Dow. Two and a Half Men , which I
consider the funniest show on television, has ranked in the top 20 television
shows since 2003, and last year garnered almost 15 million viewers. The show is
broadcast on CBS (CBS) and is rerun on the CW Network which is 50% owned by CBS,
along with Warner Bros., a division of Time Warner (TWX). CBS trades at 23 times
current earnings and 12.5 times forward earnings, and pays a small dividend of
0.9%. If you are looking for high income, you could consider the CBS Corporation
New Senior Note (CPV), which yields a generous 6.6%, payable quarterly. Earnings
for the latest quarter were up an amazing 381.3% (could a lot of that be due to
Two and a Half ?) over the same quarter last year. The show is filmed at Warner
Bros. Studios and Warner Bros. Television is one of the production companies.
Time Warner has a price to earnings ratio of 16.6 and forward PE of 12. It
generates a decent yield of 2.5%. Earnings for the latest quarter were up 21.9%.
Charlie Sheen did an outstanding job of portraying Bud Fox in the classic stock
market movie Wall Street , and along with Michael Douglas, made the movie a
blockbuster hit which is still popular today. Sheen even appeared in the sequel
Wall Street: Money Never Sleeps . Both movies were produced by 20th Century Fox,
a subsidiary of News Corporation (NWS) (NWSA). News Corp. has a PE of 14.7, a
forward PE of 13.5, and yields 0.9%. In terms of celebrity endorsements, Sheen
appeared in commercials and print ads for the Comfortsoft line of Hanes
undershirts for Hanesbrands Inc. (HBI). Although the ads were dropped last year,
Hanes may still benefit from them (an alternative to bowling shirts).
Hanesbrands trades at 11.8 times current earnings, and has a forward PE of 8.6.
Sheen is now sending out tweets on Twitter, thanks to the help of Ad.ly.
Unfortunately, Twitter and Ad.ly are not currently publicly traded companies.
However, Charlie and one of his girlfriends, Rachel Oberlin, have promoted Naked
Juice, a product owned by Pepsico (PEP) on Twitter. Pepsico has a PE of 16 and
yields 3.0%. In regard to performance of the Charlie Sheen Stock Index, it is up
6.2% so far this year versus 4.3% for the Dow Jones Industrial Average. Since
the beginning of 2010, the Sheen Index was up 21.1% versus 15.0% for the Dow,
and from the beginning of 2009, Sheen was up an incredible 65.0% versus only
34.7% for the Dow. To see a free list of all the stocks in the Charlie Sheen
Stock Index , along with financials and the connection to Sheen, go to
WallStreetNewsNetwork.com. Disclosure: Author did not own any of the above at
the time the article was written. No celebrity endorsement is expressed or
implied. No investment recommendations are expressed or implied. By
Stockerblog.com
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