DISsing DISney Message Board

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Strategies & Market Trends : DISsing DISney

DIS 111.20

-0.4%

1:09 PM EST

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To: Peter Greenhill who wrote (46)	2/15/1998 4:03:00 AM
From: paulmcg0	Read Replies (1) of 136

I'm glad I'm not one of the people buying Disney at the current prices. Based on the factors I've previously mentioned (a huge debt on the books, inflated asset values based largely on "intangible assets", and Disney's P/E ratio and dividend yields compared to other Dow 30 stocks), I think the stock price of DIS will drop. I just don't know when this correction will occur. (Hopefully, before my Disney put option contracts (derivatives) expire in April...) It has been an educational experience, essentially shorting Disney. One thing I learned is that maybe this strategy is not a good idea with Dow 30 stocks, because it probably takes longer for the average investor to lose faith in them enough to force the stock prices down to more reasonable levels. On the other hand, investors can and do panic with other stocks -- for example, the puts I hold on Computer Associates (NYSE:CA) are doing quite nicely, since the large drop in CA's price last week. Paul McGinnis / PaulMcG @ aol.com [not my primary Internet account but a tempting target to divert the e-mail spammers]

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