(Past Top Pick Oct. 20. 2017, Up 16%) ESPN numbers have stopped falling; they're doing their own streaming with 1 million subscribers already in the first five months. It's cannibalizing the cable which was going to go anyway. They own Hulu, also good. Theme parks are fine. It's relatively cheap. He targets $125. 

Excited about it, despite cord-cutting trends which Disney has survived. Their takeover of 20th Century Fox positions them very well to better broadcast their content (has a huge library now) to, say, India and Europe. Fantastic CEO. He's a long-term holder of Disney, despite the slump of recent years.

He sees it as being a little rich now. Would not be buying in at these levels.  If the economy starts to slow in the US, could put pressure on this stock.  He would wait for a 10% pull back before entry.

There are many deals in the works, nothing has closed and there is regulatory risk. These potential deals are risky reasons to invest in Disney. However, looking at Disney itself, this is the best monetization machine in the industry. For example, when they bought LucasFilm, they turned Star Wars into film, theme parks, TV shows, and consumer products. They’re also working on streaming, but there are risks with this. Aside from the sports franchise, they’re doing everything right. And the sports-related issues are well known by investors. The price consolidated for a while. It’s been rising again, but not too much. Disney is a discipline acquirer, so if the deals do come through, they will be good. However, he can’t buy the company at this time because media, as a group, is not showing market leadership. He will wait until the industry that includes Disney starts to perform better. Much of the recent rally in media is M&A premium, which is not a good basis for a long-term investment.

He bought Disney on the news of the 20th Century Fox merger. They were making money from traditional broadcasting and ESPN, but were losing subscribers. The Fox merger counters that loss as Disney moves into the streaming business, and they could be competing with Netflix now.

He likes this long-term. He took profits last fall. Their parks and studios are doing well, but ESPN is a worry with a lot of cord-cutting. That's why the stock has been stock the last few years. Disney is trying to acquire 21st Fox as a response. They had to do this, had to get into streaming. Can they execute well to go against Netflix?