Yesterday I made a pretty lengthy post on why I thought the analyst at Lehman who downgraded Disney (and the rest of the entertainment sector) didn't have very compelling reasoning for his downgrade.
Today Stephen Halpern over at BloggingStocks.com has an article that basically goes with the same things we noted yesterday as positives for the Disney company here. He says many of the same things we noted yesterday: that most if not all of the companies segments have turned in pretty good profits so far, and gives props to Disney management for staying focused.
I agree with Mr. Halpern, and if I had money to invest in Disney shares for the long term, I'd be doing it right now buying it 'on the cheap' under $30 a share.
----
In other semi-related news on the stock and Disney relations front, Siemens just announced that they are going to but almost 17,000 jobs world wide as they struggle with long term profitability and growth. Ouch!
I just looked at TONS of jobs on Siemens website the other day in Central Florida. They have a pretty large facility and biz unit in Orlando on the east side of town right next to UCF. Wonder how much it will affect them?
Posts
This work is licensed under a
2 comments:
Disney's valuation is an interesting subject. They have some problems as a corporation, but at the end of the day all of thier Characters are a tremendously valuable asset that just keeps gaining value.
-Brad
WDWForGrownups
Yeah, it's hard to nail down.
I think it's one of the difficulties with company's that move towards being a conglomerate vice a straight line business.
It tends to even out the cash flow and growth, but at the expense of clarity as you note when it comes to stock pricing.
The strangest thing at the moment of course, to me anyhow, are the deals they've had to cut to have a global presence, especially for the Parks & Resorts business. Disney owns almost nothing overseas except a supposed income stream, but of the 3 overseas parks, they probably only make decent money on 1 (Tokyo). Euro Disney is close to climbing out of a hole, and HK has quite a ways to go.
Post a Comment