Stockchase Opinions

Mike Capombassis Walt Disney Co. DIS-N PAST TOP PICK Sep 01, 2016

(Top Pick Jun 7/16, Down 3.60%) He is still a fan. The largest and highest quality media company in the world. The scale and diversity of the portfolio is the competitive advantage for the company. They acquired a stake in a company that does live streaming. It offsets cord cutting effect on ESPN.

$94.260

Stock price when the opinion was issued

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WEAK BUY

Disney reports next week. It ranks 4 out of 4 in streamers in terms of making, but still feels that CEO Iger is doing a good job in taking out capacity.

PARTIAL BUY

A definite hold, though you can probably add to it here. It reports Thursday and he wants to hear how the streaming business is going, and are the theme parks recovering. A lot of things 

HOLD
Password-sharing crackdown in the works.

Happy with results this morning. Increased profitability from streaming. Struggling lower- and mid-income consumer impacting park revenues; probably a short-term concern. Phenomenal content library.

BUY

Streamers, including DIS, will work in 2025, unlike in previous years.

BUY

It reports Wednesday. Hurricanes impacted last quarter and the LA wildfires could impact the forecast in this quarter. But all else is hitting on all cyclinders incuding linear TV. Could be putting recent weakness behind them, and shares are historically cheap.

BUY ON WEAKNESS

They reported a terrific quarter: theme parks much better than expected, movies fantastic, TV and sports positive. But there was one line in the report that said that when they raised prices they lost 1% of subscribers in Q4. So, shares fell 2.44% today. He expects people will forget why they sold Disney and its shares will be higher.

PAST TOP PICK
(A Top Pick May 15/19, Down 14%)

Profits not appearing from streaming. Sold stock 4 years ago. Management issues and problems with business have not been good. Will take time to see if business can turn around. 

BUY

The price hikes must stop at the theme parks and focus on getting more people into them. It's good to hold now, because of the valuation and streaming is more profitable than it was projected a year ago.

HOLD

Lumpy road to recovery, but Iger's making progress. Streaming is becoming profitable. Content offerings are turning around, with a huge library. Parks have slowed, investment has increased; yet still a destination vacation for many across the world. Good growth in cruise ships. Undemanding multiple under 20x PE. She's being patient; upside from here.

COMMENT

It has been tough to own. She doesn't see a catalyst near term, but they are getting their streaming business in line and will survive streaming, as they invest in their theme parks. 1.3 million Canadian visited Orlando in 2023, so will they come back?