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The Walt Disney Company Message Board

  • fuzzhead72 fuzzhead72 Jan 3, 2003 11:06 AM Flag

    Disney - two years to recover?

    If any of you had to hazard a guess, how long do you think it will be before Disney "recovers" back to at least the ~$30 a share territory?

    I would say two years. Debt has been increasing, and so has competition from other firms, especially in the realm of children's movies. For the most part, it also doesn't seem that the company is able to create new shows for its ABC network that people actually want to watch, and keep watching.

    Considering that people are spending less on travel and theme parks, the outlook doesn't seem so rosy there, either. It may be a while until Disney starts to recoup recent spending on upgrading the parks.

    Anyone have any thoughts on why the stock may continue languishing, or perhaps why you think it might do the opposite?

    Dan

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    • << fuzzhead72 : If any of you had to hazard a guess, how long do you think it will be before Disney "recovers" back to at least the ~$30 a share territory?

      I would say two years. Debt has been increasing, and so has competition from other firms, especially in the realm of children's movies. For the most part, it also doesn't seem that the company is able to create new shows for its ABC network that people actually want to watch, and keep watching.

      Considering that people are spending less on travel and theme parks, the outlook doesn't seem so rosy there, either. It may be a while until Disney starts to recoup recent spending on upgrading the parks.

      Anyone have any thoughts on why the stock may continue languishing, or perhaps why you think it might do the opposite?>>


      As any REAL recovery for Disney depends entirely on the efforts they put into correcting the internal damage that the company has suffered over much of the past decade, there is no way to estimate the improvements you are looking for. Especially since there is no evidence that the needed corrective measures have even been contemplated, let alone started.

      With all the issues facing Disney that you noted above, along with others that many are just not aware of, the likelihood of breaking even $20 may take some time. Of course, there COULD be a huge general market bull run that could DRAG Disney up with it, but that�s only slightly more likely than Disney turning itself around any time soon.

 
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