UBS Warburg LLC media analyst Christopher Dixon wrote last week that improving advertising trends, the impact of technology on distribution channels, scale and strengthened balance sheets would be the major drivers leading the sector toward 10 percent cash-flow growth in 2003. Dixon picked Viacom Inc. and USA Interactive Inc. as his favorite stocks for growth investors, and AOL Time Warner Inc. and Liberty Media Corp. for value investors. He rated The Walt Disney Co. and Yahoo! Inc. as neutral. "Fundamentally, we view 2003 as a year of base-building, as the industry digests the go-go years of consolidation," Dixon wrote. Smaller-cap stocks like Metro-Goldwyn-Mayer Inc., AMC Entertainment and LodgeNet Corp. should offer attractive returns, too.
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