What does Disney have to do with deckers? Welll despite obviously being undervalued relative to potentail future cash and UGGS being a cash cow these last 8+ years, the disney beat shows us people are SPENDING money(which we know from the last earnings report 12 days ago as UGGS sales were UP compared to last years first quarter and sales were over a billion for the 2nd year in a row.
Disney reported RECORD attendance at its parks. Disney has definitely been priced in for this news where it is currently trading at but even DECKERS doubling in the last 6 months from 28 to where we are today, the stock is flat for the trailing 12 months. This despite UGGS sales being virtually the same as two years ago and cash production in the 4th quarter(the most important quarter that dominated over 85% of our sales) was over 250M wiping away virtually all the debt we used to buy back 221M worth of shares.
When I went to see Iron Man 3 on IMAX 3D the other day, it showed previews for upcoming movies from Marvel owned by Disney including Wolverine from X Men, another Thor and another Super Man, and Iron Man 3 was better than Iron Man 2 and the theater was fairly filled even on 10AM slot, and was a long line for next slot. And also there will be star wars movies coming out from Disney down the road. So, I was thinking to myself, maybe I should buy Disney. But it seems it is quite high already. Maybe, I should wait a bit. Who would have thought Verizon would get PE of 130 with 4% dividend yield? It's just crazy with too much FED money.