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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (73693)	9/23/2023 6:00:41 AM
From: Harshu Vyas	Read Replies (1) \| Respond to of 78705

Hi Spekulatius I think I explained it here earlier somewhere some time ago. I'll briefly explain again. 1. Anchoring effect. Chart looks good - retail want to BTFD. 2. Normalised earnings - say pre-pandemic earnings were $10b so ~ 15x earnings today. Not cheap especially when you consider all of the spending etc TODAY that's required to keep their streaming business afloat. Worth noting that they aren't FCF monsters - it takes a lot of cash required to keep their parks etc in top condition. Again, worth noting that assets aren't "earning" enough post-pandemic. So whilst DIS have an asset-heavy balance sheet, it's not really a true indicator (in these conditions). I have nothing against DIS but they shouldn't be worth as much as they are today. In a way, they've done the classic "sacrifice profits for revenues" and lost their way a little. Maybe I'll be there to scoop up the shares at the bottom but definitely not right now. Ironically, PSR is one of my favourite ratios but when Disney's PSR is falling, to me, it seems like a "get out" signal! Best, Harshu Vyas