Disney advances on positive Barron's
story
By David B. Wilkerson, CBS
MarketWatch
Last Update: 12:21 PM ET Jul 26, 1999
NewsWatch
BURBANK, Calif. (CBS.MW) -- Walt Disney shares
rose on Monday after an upbeat cover story on the
entertainment giant appeared in Barron's over the
weekend.
The Dow component (DIS: news, msgs) rose 7/16 to 27
1/4 in recent trading, bucking the weak trend of the
broader market. See Market Snapshot.
The article said
Disney shares,
out of favor for
several quarters
due to weakness
in its
merchandising
and broadcasting
divisions, could turn around if there's even "a whiff of
an earnings improvement." The magazine quoted an
observer as saying the company's many assets are too
"inherently valuable" to allow the stock to stay in the
20s.
Barbara Hourihan, first vice president of investments at
Morgan Stanley Dean Witter, told
CBS.MarketWatch.com on Monday the stock "will see
better days."
"I think their earnings momentum begins going forward
soon," she said. "I think by year-end the stock will have
turned up."
Hourihan also called Disney "one of the few blue-chips
I can buy here and not feel like I have a whole lot of
downside risk, yet still have the potential for upside
momentum." |
