Walt Disney (DIS)

Re: Walt Disney (DIS)

Postby winston » Thu May 03, 2018 9:38 pm

not vested

Value Trap Stocks: Disney (DIS)

Why It's Time to Buy DIS Stock

Walt Disney Co (NYSE:DIS) may look attractive. It’s trading at a price to earnings ratio of just 14 and has some really great assets, from its iconic theme parks, to great movie franchises like Marvel and Star Wars.

But the reality is that in the short term, DIS results will continue to be uninspiring thanks to the proliferation of cord cutting and Netflix.

Cord cutting is hurting ESPN, which is a key part of Disney’s overall business. Meanwhile, cord cutting and the rise of digital advertising are harming Disney’s ABC TV unit. In the quarter ended in December, the operating income of Disney’s Media Networks business — which includes both ESPN and ABC — tumbled 12% year-over-year.

Meanwhile, the tremendous popularity of Netflix has had a negative impact on movie theaters and Disney’s own home movie business — denting Disney’s studios unit in the process. Last quarter, even with the release of a Star Wars’ film, the operating income of Disney’s studio entertainment unit fell 2%.

It’s important to note that, taken together, Media Networks and Studio Entertainment account for over 50% of the company’s revenue and segment operating income.

Over the longer term, Disney has correctly decided to take a “if you cant beat them, join them” approach to dealing with the Netflix phenomenon.

Specifically, Disney is launching its own streaming TV service next year, along with a sports TV streaming service.

But given high content acquisition costs, startup costs, and high initial promotional spending requirements, those initiatives are unlikely to be profitable before 2020.

Source: Investor Place
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Re: Walt Disney (DIS)

Postby winston » Thu Oct 25, 2018 7:50 pm

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HOW 'TROPHY ASSETS' BUILT AN UNSTOPPABLE MEDIA EMPIRE

Today, we're revisiting one of our favorite investment strategies...

Regular DailyWealth readers know we're big fans of "trophy assets." These are one-of-a-kind, world-class assets that give their owners a big leg up on the competition... And they are so desirable that their owners will always have access to financing. Today's company owns trophy assets you probably know well...

Disney (DIS) has entranced the public with films and franchises for nearly a century. With characters like Mickey Mouse and its iconic princesses, this company has built an arsenal of irreplaceable trophy assets...

Plus, you can throw in Disney's popular vacation destinations, like the Walt Disney World Resort. Roughly 150 million people visited Disney's attractions worldwide last year... And in 2017, Disney's resorts segment brought in more than $18 billion in revenues.

As you can see in today's chart, although DIS is experiencing some volatility lately, it recently touched a new 52-week high. And with its treasure trove of unique, enduring assets, this company isn't going anywhere...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Walt Disney (DIS)

Postby winston » Fri Nov 09, 2018 8:18 pm

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Consumer Discretionary: Walt Disney Co. (DIS)

DIS stock has a plan for bouncing back from the cable-cutting trend that has plagued the company in recent years.

It will soon introduce its own streaming service, removing its programming from the Netflix (NASDAQ:NFLX) platform. With its ownership of its classic Disney movies as well as Lucasfilm, Marvel, Pixar, and other media franchises, DIS stock remains the king of content.

Its place in content has become further strengthened with its purchase of assets from Twenty-First Century Fox (NASDAQ:FOXA).

Moreover, the stock has appeared to recover from the disappointment at its Lucasfilm division regarding Solo: A Star Wars Story. DIS stock currently trades at around $116 per share, near its current 52-week high.

Despite this higher price, the P/E ratio stands at 14.7. Also, analysts predict profits will grow by 21.6% this year and at about a 10% annual rate on average for the next five years.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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