Hello JayTee,
Let's take a look at the various profiles for some clues...
MONTHLY CHART PROFILE - DIS
stockcharts.com[L,A]MALLYYMY[PD20,2!C20!F][VC60][IUB14!LG!LF]
Looking at the big picture over a ten year span, DIS has
done great! Nothing "Micky Mouse" about the growth with DIS.
It sure does look like a bottom is just around the corner.
The bottom price support being the $25 or so. RSI is below
50 now and that has not occured that often with DIS. Good
future prospects here.
WEEKLY CHART PROFILE - DIS
stockcharts.com[L,A]WALLYYMY[PD20,2!C20!F][VC60][IUB14!LG!LF]
Now, here we still see the upper and lower BBs in a
divergence with more downside ahead. The expo moving average
in between the BBs is still negative. Again RSI below 50 and
the stock has hit as low as 30 RSI only one in ten years.
Once again, signs that a bottom is very near. And, the
bounce in the past have been strong. Considering the DIS is
part of the DOW I would expect that.
DAILY CHART PROFILE - DIS
stockcharts.com[L,A]DALLYYMY[PD20,2!C20!F][VC60][IUB14!LG!LF]
Now, this is a clear fuller picture of which way DIS is now
heading. $25 For sure! Upper BB is starting to level off.
But, the lower BB and exp. moving average is still negative
OBV is level. Again, I would lean towards a new bottom is
coming in the not too distant future.
DIS FUNDAMENTALS
DIS is listed in the diversified media group as #1 in cash
flow and as #2 in revenue and profit out of 13 companies.
They are only exceeded by Time Warner in revenue and profit.
DIS sports a 15% annual growth rate which is not bad for DOW
stock that large and ranks 114 in the S&P 500. That's alot
of Donald Ducks if you ask me. Offers Movies, Television
and Music, Broadcasting, as owner of ABC and ESPN, and
Theme Parks and Resorts, including DisneyLand and
DisneyWorld. Controls INFOSEEK (Nasdaq: SEEK) and the GO
Network
NYSE: (DIS : $29 7/8) $62,074 million Market Cap at
November 28, 2000 Ranks 114th in the Fortune 500 on Revenue
& 132nd on Profit. Employs 120,000. Trades at a 38%
Discount PE Multiple of 34.0 X, vs. the 54.9 X average
multiple at which the Diversified Media SubIndustry is
priced.
The WDSAE 25s Jan02 LEAPs last @ 7 5/8 with an open interest
of 6,315 are starting to look pretty good. You might be able
to pick them up for a mere 6 to 6 3/4 if DIS drops to $25.
Not much of a risk at those price levels.... I will place
this one on my watch list since the last time I picked up
DIS LEAPS when DIS was at $24 and sold them at DIS $30 for a
very nice profit. I may have to repeat that play.... |
