Yes but on the other hand....
IMHO DIS "has a chance" to give a sudden bottlerocket surprise, and possibly soon. So DIS is an Internet Stock now. Add that to the fact that DIS for years has been one along with McDonald's, etc. to put into a childrens gift account. DIS is not considered a high-risk stock at brokerages, & although it isn't exactly big recommends at the moment - it needn't make that leap from the risky internet spec zone to already be an stock that newcomers to investing might want to hold and be comfortable with as an Internet (as Internet is a part but not the whole of it). Lotta shares out there. DIS looks respectable on a roster of Mutual Fund Holdings; and am thinking once any Internet Fund puts it on their list that would be a nice boost. It gives a dividend, granted not much of a dividend, but nonetheless, how many internet stocks do?...and the P/E is 40 which is not bad at all for an entertainment sector stock, much less an Internet. Most likely the upcoming quarter's earnings won't be so hot, because of this new expense, foreign markets, and the seasonal cycle. But thinking Spring should be much better, like last year.
The Disney Stores at the malls are always ringing up sales, and once they sell that stuff Online to ship it out (I mean, who really wants to go to a Disney Store unless you're with a kid or checking up on your stock), it could become a hot newmarket item for children in the more rural areas where no Disney stores in big malls are closeby. The go.com site makes a beautiful presentation for their cruises and their private island, among other goodies. Well, so that's why I added some to my DIS shares last week. It looks to me like it's about due to come out of it's post-split devaluation transition any time now. The split varied from it's previous pattern in that it wasn't as big as some previous, but on schedule after several years. It looks like there maybe could be some room to give another smaller split sooner than usual, or maybe a spin-off, if they want to. There was a nice volume spike earlier last week corresponding to the price rise, which IMHO is a happy sight in January for a stock. Anyway, all these positives around the Internet Announcement inspired me to increase my shares a bit. Looking forward (hoping I'm right) to turnaround time soon, as the share price has been edging up steady and nicely, as of late.
Best of luck to all Mickeys and Minnies,
Joana |
