Disney stock in basement.

[thecrazyone]

Lower than during COVID! Good time to buy, imo.

[Recyclersteve]

It is a beloved company and close to a 52-week low, but still has a couple of problems IMHO. First, they don’t pay a dividend, which was a bit shocking to discover. There are plenty of mutual funds and value type individual investors who flat out won’t buy stocks that don’t pay dividends.

Secondly, their P/E (price to earnings) ratio is over 50. The average company typically sports a P/E of, say, 15-20. Generally, lower P/E’s are better than higher ones. This implies the stock could go down another 50-65% or so and still not be cheap.

If you want an alternative choice, check out Intel (INTC). Intel has a P/E of just 8 and also pays a 5.4% dividend. There is much less risk in buying INTC now IMHO.

[silverflake]

DIS also has chosen to promote a social agenda within their products (especially movies). This thread should not be used to tangentially discuss that agenda but from a business stand point as it relates to Disney, their agenda driven policies ARE NOT WORKING. And it's hurting the bottom line. Their movies are losing massively. Disney+ Subscriptions have plateaued. The parks amazingly still make money but are either undergoing construction (see Epcot) or in need of updating/repair (wife and I went last December, it's not the pristine Disneyworld of the not so distant past). The cost is now prohibitive too. They have even stuck their noses into Florida politics. Again, thats not for this thread but it's still not what a for-profit business that historically has catered to traditional family entertainment should be concentrating energy on (perhaps thats more opinion than fact?). Thus until they, as a business, acknowledge what their audience wants and more importantly what it doesn't want, then Disney will struggle.

Of note for disclosure, my wife and I own some token shares of DIS we have bought over the years including some residual fractional shares from pre-2020 when they paid a dividend.

As for Intel, I agree recyclersteve, it may be undervalued...or perhaps done for? Regardless I have been selling out of the money put options against it all year. Actually got it put to me once, immediately sold calls and had it called away. So i don't believe in it enough to buy in but I have been "playing " it. Option premiums have been nice!

[thecrazyone]

You guys are all correct on your points. It's funny, when I last bought any DIS, it was during COVID, and I sold it when it started to turn around.

I bought a little bit of DIS on Thurs and then sold it Friday for a small gain. Thanks, Walt!

XD

[JadeDragon]

Sucks no dividend and I don’t think they allow optional cash investments anymore. One of my girls owns a share or a bit more but can’t add on anymore.

[Cu Penny Hoarder]

Wokeism will eventually ruin them... I say let it happen.

[Recyclersteve]

I heard two guys on late night talk radio mentioning that DIS is promoting LGBTQ stuff. Not sure specifically about that, but haven’t seen their movies or been to a theme park in many years.

Oh yeah, there’s also ticket prices. I see a 2-day visit is $143/person/day. Yikes!

Geez, maybe I need to consider SHORTING this stock, betting it will go down.

Please, Walt, say it aint so…

[Recyclersteve]

There is a movie on Disney from a stock investment standpoint called Walt’s Disenchanted Kingdom. It is 50 minutes long and available to see for free at the following site:

watch.salemnow.com

Needless to say, this is a VERY BEARISH movie. I saw just the preview and am considering shorting the stock to bet on it going down.