A story can trump what numbers tell you, McCallister concludes. And, so, against his general policy, "we do have a few companies with a good amount of debt, but they better be good," he says. Consider Time Warner (TWX): "It has 4 times debt to [earnings before interest, taxes, depreciation and amortization], but is a stable business; subscribers have grown even during the downturn."

Media companies rallied nicely Thursday after Goldman Sachs analyst Mark Wienkes raised his rating on the group to Attractive from Neutral, pointing out that advertising revenue at cable networks is expected to increase 6% from the level a year ago, as national advertising outpaces local advertising. Wienkes' favorite is Time Warner because of its HBO, TNT and TBS cable networks, which stand to gain from strength in national advertising. He noted, too, that Time Warner trades at a discount to the entertainment group.

Auxier also sees good value in corporate debt, and has invested more than 20% of his fund's assets in bonds of companies such as Waste Management (WM), Time Warner (TWX) and Dr Pepper Snapple Group (DPS). He owns Dr Pepper stock, too, and it's his best performer this year, up 63%.

"Lightning Round, Aug. 11: News Corporation (NWS): "I don't like media companies. I like Time Warner (TWX) because its all cable. I just can't recommend it."

Cable networks, in particular, represent a handily defensible business, and companies heavily exposed to cable fees, such as Disney, Time Warner (TWX) and, to a slightly lesser but significant degree, News Corp. (which has been hurt by its purchase of print-publication and wire-service-heavy Dow Jones in late 2007), are well-positioned to prosper as the industry's technological and economic arrangements evolve.

On stocks of companies that have significantly lowered earnings guidance, buy defensive puts. This works for Texas Instruments (TXN), Ingersoll-Rand (IR), Eaton (ETN), International Paper (IP), National Semiconductor (NSM), Sandisk (SNDK), Illinois Tool Works (ITW), Massey Energy (MEE), Parker Hannifin (PH), Estée Lauder (EL), Time Warner (TWX), CSX (CSX) and Norfolk Southern (NSC).

News Corp (NWS.A): Teens? Try $6. A dollar below Time Warner (TWX), a perennial teenager until now.

Warner Bros., a division of Time Warner (TWX), is a co-producer of top-film nominee The Curious Case of Benjamin Button, along with Viacom's (VIA.B) Paramount Pictures division.

Warner Bros. Television: Two and a Half Men playing Prudence, Berta's granddaughter

The Dukes of Hazzard movie Warner Bros.

lost money w/aol

stock is down

Promises, Promises, and more promises! Doesn't seem to have a clear direction.

Their totally onesided coverage of the presidential election was a major contributer to electing a slate of Socialists/Communists

poor management

lost money in a recession proof buisiness

Can we say AOL...the day Case and Turner shook hands, it was downhill for that stock with no relief in sight. Case and AOL board cost a lot of us a fortune!

keep losing money

what a waste

An old dog that has no chance of producing big returns, only dissapointment