Nice try novalueinvstg -
One month ago the Dow was at 17958 and today it closed at 16058, a 10.5% haircut. From the high for the year of the Dow, the Dow has corrected only 12.5% (more to come).
On month ago, near its 52 week high, Disney was at 120.88 and it closed today at 99.51, an 18% haircut. Disney is leading the haircut parade as it rightly should.
The logic of this kind of analysis, however, reminds me of the overweight guy who hangs out with other overweight people because he thinks they make him look thin.
Remember too that the market is ahead of the curve. You will see earnings disappointments soon as predicted by the market. When the bad numbers unexpectedly hit, that's when the real bloodbath begins.
Too many of you feel good investors forget that markets and earnings follow cycles. It is asinine to pay in advance for growth which will never materialize and in fact is just as likely to be disappointment.
Wrong on the facts, wrong on the logic, maybe you should stick with the cheerleading for the Star Wars retread
Supporting it on down days. That's okay, when the bottom falls out this won't have any support and will free fall back to a realistic valuation. Lots of empty air underneath.
Oh, I don't know. 3 and 1/2 times sales seems just a tad pricy any company. But if you think that's cheap, I encourage you to keep buying.
Imagine that. DIS is still a cyclical earnings play after all (with the downturn just around the corner perhaps?) Hard to justify paying over 3 times revenue for that.
Even wth this minor correction equities remain anything but cheap. Lots of empty space unde DIS at 97.
It's funny that the continued overbought conditions of the last several years don't seem to concern you folks equally as much.
My favorite delusional DIS investors are the ones who pull stock price objectives from thin air. DIS 150. It's such a special company that 5 times sales and 30 times peak earnings is appropriate?
CBS/Fox 6-7 times earnings. Viacom 10 times earnings. Even Comcast/Time Warner is only 15-16 times earnings, using the term "only" loosely and for comparison purposes only.
But Cramer says DIS is "Best of Breed". Do a google search on Cramer, "Winners for the New World". He is famous for leading you to the most overvalued of stocks during market tops.
Bubbleheads keep buying. The sooner foolish money is burned off, the sooner recovery begins.
There might be more bad news for ESPN: As many 300 people there will lose their jobs soon after parent Disney ordered the sports enterprise to slash the 2016 budget by $100 million and the following year’s by $250 million, sports news site The Big Lead reports.
ESPN disputes the budget-cut figures but isn’t discussing details. While it won’t confirm or deny the layoffs, the company says in a statement that it “has historically embraced evolving technology to smartly navigate our business. Any organizational changes will be announced directly to our employees if and when appropriate.”
Reading between the lines, that seems to suggest that if there are job cuts at ESPN then they would be strategic — tied to changes in the business — as opposed to mere cost reductions.
Still, the news follows a series of developments that indicate Disney has concerns about its most profitable asset. The company’s share price is down 15.7% since August 4 when it reported that ESPN’s “modest” sub losses meant that the year’s domestic cable affiliate revenues would, as CFO Christine McCarthy put it, “fall a bit short of our previous expectations.”
Others warn that ESPN’s sub losses could pick up as pay TV and streaming services introduce skinny bundles, low-priced packages with fewer channels than most buy in the expanded basic bundle. Last week, Morgan Stanley’s Benjamin Swinburne noted that “few of the currently available skinny bundles include ESPN.” He estimated that Disney’s cable affiliate revenue