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Technology Stocks : Walt Disney -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (1274)	11/30/1998 4:55:00 PM
From: Chip Anderson	Respond to of 2222

Here's a transcript of today's CNBC report on Disney: WE MAY HAVE HAD A MONDAY SELL-OFF BUT THAT WASN'T THE CASE FOR DISNEY, IT BUCKED THE DOWNWARD TREND FINISHING UP 3/8 AT 31 1/4. A BIG REASON IT WAS SUCCESSFUL WEEKEND AT THE BOX OFFICE. AND FOR DISNEY IT WAS HUGE. THE FILM GIANT TOOK IN A RECORD $46 MILLION FOR THE FIVE-DAY WEEKEND, WITH THE ANIMATED FEATURE "A BUG'S LIFE" LEADING THE WAY. JIM PAYMAR HAS THE STORY. >> THE CREEPY CROWLEY THINGS MADE A LOT OF MONEY THIS WEEKEND. SUE: I KNOW. JIM: SUE, IT WAS A GREAT WEEKEND FOR DISNEY; NOT ONLY WITH "A BUG'S LIFE," BUT THE ENTERTAINMENT CONGLOMERATE HAD THREE OF THE TOP FIVE MOVIES FOR THE HOLIDAY WEEKEND KICK-OFF. SOME ANALYSTS BELIEVE THE STRONG PERFORMANCE BY THE FILM DIVISION IS HELPING TO MOVE DISNEY STOCK, WHICH HAS SEEN A NICE RISE AS OF LATE. >> THESE NUMBERS ARE SOMETHING THAT MAKES THE DAY FOR DISNEY CEO MICHAELIZENER LOOKING OVER THE TOP FILMS FOR -- MICHAEL EISNER, AND SEEING A BUG'S LIFE RAKING IN 46 MILLION, ENEMY OF THE STATE CASHING IN THE 25 MILLION, AND LOW BUDGET COMEDY THE WATER BOY BRINGING IN CLOSE TO 20 MILLION DOLLARS. TOGETHER, THE FILMS GROSSED MORE THAN 90 MILLION. FOR DISNEY, THE CASH FLOW IS SIGNIFICANTLY HELPED STEM THE TIDE OF UNDERPERFORMING BUSINESS SEGMENTS WHICH HAVE BEEN FALTERING OVER THE PAST YEAR. >> IF THERE'S AN UPSIDE SURPRISE TO OUR RECENTLY REDUCED ESTIMATES, THEN IT MUST KPROM THE FILM DIVISION AND GIVEN THEIR LAST FEW RELEASES, THEY WILL BE VERY PROFITABLE. >> TO EARNINGS FRONT, DISNEY HAS SEEN A FAIRLY STEADY EARNINGS DROP FROM THE FOURTH QUARTER OF LAST YEAR, WHEN IT EARNED 37 CENTS, DROPPING TO JUST 14 CENTS IN THE THIRD QUARTER OF THIS YEAR. AND DISNEY SHARES HAVE HAD A ROCKY RIDE THIS PAST YEAR, RISING TO A SPLIT ADJUSTED HIGH OF 42, THEN SENGING LIKE A STONE TO A LOW OF 22 BEFORE REBOUNDING NICELY FROM OCTOBER LOWS, FINDING ITS WAY BACK TO THE LOW 30s. WHILE FILMS WILL DEFINITELY HELP THE BOTTOM LINE, DISNEY HAS SOME MAJOR OBSTACLES TO OVERCOME TOGETHER FORWARD. >> THEIR BUSINESS IS NOT VERY STRONG RIGHT NOW. SOME OF THEIR BUSINESSES ARE ACTUALLY DOING VERY POORLY, SPECIFICALLY THEIR BROADCAST DIVISION, WHICH INCLUDE IT IS ABC NETWORK WHICH IS NOT DOING WELL AT ALL. ABC'S RATINGS, RADIO DIVISION WHICH IS UNDERPERFORMING THE INDUSTRY AND EPPSP WHICH WAS A GROWTH ENGINE HAS SEEN A SIGNIFICANT SLOWDOWN IN ITS GROWTH RATE. >> DISNEY, LONG KNOWN AS A GROWTH COMPANY HAS SEEN SALES GROWTH SLOW TO 2.2% AND GOING FORWARD A. SHARP SNAP-BACK DOESN'T APPEAR TO HORIZON. >> THE FIRST QUARTER OF FISCAL YEAR '99 WILL LOOK VERY SOFT FOR DISNEY AND HOPEFULLY IT SHOULD START TO CLIMB OUT THAT HOLE AS THE YEAR PROGRESSES. THEY WILL FACE SOME COMPETITIVE PRESSURES IN THE THEME PARK AREA IN THE SECOND HALF AS UNIVERSAL BRINGS ON THEIR MAJOR THEME PARK IN FLORIDA. BUT OVERALL, WE'RE LOOKING FOR A FLAT EARNINGS PICTURE AND ESSENTIALLY AT THIS ON IN WE BELIEVE IT WILL BE A MARKET PERFORMER. >> MERRILL LYNCH CONTINUES TO HAVE A HOLD ON DISNEY, AS DO 10 OTHER ANALYSTS THAT FOLLOW THE STOCK. HOWEVER, 11 OTHERS HAVE A MODERATE BUY OR BUY RATING ON THE STOCK. AND COULD IT SALS PROFITS SURGE WITH INFOSEEK. SUE: SOMETHING TO WATCH FOR, THANKS, JIM PAYMAR. Chip coolhistory.com