Disney Investments

[disneyispi]

I've had Disney stock for 17 years and I will be buying more of it, a lot more of it! I hear what you all are saying about good investments - Disney is a GREAT investment! It is an American institution that everyone, all over the world, recognizes it as being a symbol of Americana. To invest in Disney stock is to invest in America. True, I'll be taking advantage of the lower share prices and I will be investing for the long-term.

What has driven the stock market down has been a loss of confidence in the company's that have chosen dishonesty and fraud over truth and justice. I have full faith and confidence in the Disney Corp. So much so that I'll invest in at least another 100 shares. If I sound too patriotic - Thank you. Just wanted to "share" my thoughts.

 

[Sarangel]

Disneyispi -

Disney may or may not be a wise investment (financially). There's a lot of debate around here about how the company is being run by the current management. Some of us consider that the wrong choices have been made and will continue to be made as long as there isn't a change in management. We all hope that the company will do well, but not all of us are as positive as you are.

What makes you so certain that the company hasn't been hurt by the downsizing of the animation department or cuts at the theme parks as well as the economy?

Sarangel

 

[All Aboard]

 

[manning]

Disneyispi, just don't put all your eggs in one basket. IMHO it looks like there are indicators and profession opinions popping up to indicate the problems are not being caused by the economy. The economy may have been the trigger that is bringing the problems to light. I'm sure there are companies out there with cash reserves to weather the storm. Two potential down grades in long term credit ratings is causing concern about their debt load.

 

[DemoBri1]

One thing that I have learned about professional financial advice is that there really isn't any.

People will still go to Disney even during hard economic times. Its a fact that the one thing people won't do without in tough times is entertainment and "time away from the hustle and bustle". It may take some time, but the company will survive. Maybe not in its current configuration, but it will survive.

I mean can anyone really imagine a shuttered Disneyland and WDW??

Has everyone (those of you that are old enough to remember that is) forgotten about the wonderful economic times of the mid to late 70's and early 80's. My how a decade of wonderful economic times can pull the shades over our eyes.

The economy has hit another speed bump on the road of life. It will happen again I guarantee it. But what we should do instead of proclaiming that the "sky is falling", is to step back and take a deep breath and wait for the economy to rise off the bottom of the pool. Once this happens and the stock market levels off to where it should be (not close to where it was 18 months ago), then we will all be wondering why we even had this conversation.

Just my $.02

 

[raidermatt]

People will still go to Disney even during hard economic times.

But they are doing so in lesser numbers.

I mean can anyone really imagine a shuttered Disneyland and WDW??

No, not anytime soon. They are too valuable an asset. Somebody will run them.

But when you are talking about investments, its not whether a company will "survive". Its how the company is doing relative to other investment options. Surviving is not the kind of outlook you should be looking for when deciding where to put your retirement money.

Right now, Disney is not performing up to their capabilities, and the stock price is reacting accordingly.

 

[DisneyKidds]

Right now, Disney is not performing up to their capabilities

But that is what you do want to look for in a stock - one that is underperforming given its fundementals. As you point out, the assets are very valuable. Disney has been reducing debt. On paper Disney is probably still a decent stock. As long as the numbers are there, someone will eventually make some changes that will help Disney perform up to its capabilities. Who knows when is the question - but at below 18 it may be a good long term stock. At least you are not saying Disney is not capable of more - that would be a problem.

 

[manning]

Who ever thought IBM, AT&T, Kodak, and a few others I can't think of, are but a shadow of their glory years.

Never say never. Don't think something will be around or the same because your in love with it. Don't emotional about your investment.

 

[Bstanley]

One thing that I have learned about professional financial advice is that there really isn't any.

Last year a professional association for stock brokers in Great Britain had a competition among it's members. On 1/1/2001 They were given a money limit and told to pick a number of stocks. On 12/31/2001 their picks were evaluated for how well they had fared in that most unusual of years...

The MOST successful professional competitor's picks had LOST about 4% for the year...

For amusement the president of the association had had his 8 year old (?) daughter pick stocks also - it turns out that her choices had MADE about 5% for the year...

Predicting individual stocks is always a gamble. You can minimize the risk through devices like index funds, but even they will have some risk over the short term. One thing you can say about the stock market is that it is the only form of gambling permitted in all fifty states and you don't have to smoke or drink to enjoy it!

 

[DisneyKidds]

Who ever thought IBM, AT&T, Kodak, and a few others I can't think of, are but a shadow of their glory years.

Someone would have said the same about IBM in 1997 when it was below 60. Only wish I had the cash to buy it then. Two splits since, and even though it stands at 71 today it will likely be back to 120+ in 6 months. Now for the others you listed I can't say the same.

As to buying Disney stock, if you wait until Disney performs to its capabilities you will have missed the true value.

 

[manning]

IBM - High point about 140 in march 1999. Trend is down, where it will go, I know not. My style is dollar cost average and play long.

 

[DisneyKidds]

Yes - a high point in early 99 that led to a split in May. Since then IBM has traded up and down between say 80 and 120, on average. The current 52 week range being mid 60's to mid 120's. Hardly a consistent downward trend resulting from poor performance following that 99 high. My only point being that IBM has proven to be a much more reliable stock in the mid term, despite a few short term drops here and there. IBM is also very different from AT&T and Kodak, who current 52 week ranges are nowhere near their glory day highs. 6 months ago, for every share of IBM you owned at 140 in early 99 you had two shares at 126 - not too shabby. The last six months have been hard on everyone, including IBM.

 

[manning]

Looks like the charts don't agree with actual quotes. checked one day (3/15/99). closing price 182. adjusted to 91, now in 70's