What do you expect from DIS except politically correct vomit? Remember ESPN giving Bruce Jenner a "courage" award?
Growth industry. Royalty income from military contract continuing indefinitely. Sales 3 and 1/2 times market cap, a complete reverse of DIS. A debt free pristine balance sheet. An 8% yield. An attractive takeout play.
Value exists if you are smart enough to look for it, and to take advantage of it when you find it.
On the other hand, when you invest in real stocks you don't get to go to the theater filled with an assortment of nerds and feel good about the penny your DIS investment is generating with the theater full of like minded people taking in content more suitable for a 14 year old.
Bought it at 9.30 dude. I'll get a double next year in a real growth industry, you'll get to take a tax loss holding onto this pig.
Bagholders don't understand the philosophy that the best loss is an early one. They hold to "get their money back", as if the stock somehow market understands the price they paid.
The only tests are is there any value for my investment (No)? Can my money be more productively put to use elsewhere (Yes)
Yea, DIS is such a special media stock, where valuation is irrelevant, it will keep going up forever and ever in the Disney fairytale in which you reside.
The refuge of intellectual laziness: One, using a comparison (GOOG) that doesn't compare (I'd cite TWX, FOX, CBS, CMCSA as comparisons, but I know you would argue they are not comparable because DIS is such a special company); Two, citing other overvaluation situations as justification for chasing DIS at nose bleed levels. Can't believe how many people have forgotten that market peaks are dangerous times to be in expensive stocks.
Wrong. By any metric it is wildly overvalued. The case for the longs is based on a future financial performance which may or may not materialize. The longs assume it will. There is no factoring in whatsoever of any element of risk, i.e., such as plans don't work out (it happens), new competition hits the market, recession hits, and god forbid, this extended mature bull market actually ends. 3 and 1/2 times revenues for an entertainment company, that's right, an entertainment company, is insane.
I give qualityinvesting and robinfamily an A for effort, they at least try to make the case that this is somehow fairly valued, in contrast to most of the feel good analysis I read here. But until someone explains why it is prudent investing to pay prices for this stock not yet even close to being earned by actual financial performance, and to remove all potential for risk from the valuation equation, this will remain one of the most overvalued equities and foolish present investments around.
When charges come for writedowns, severences, writeoffs, recharacterization and the like hit, then the feel good mantra will become, "Well, its only a one time charge!"
Never mind that an earnings story was floated using those numbers. DTDT accounting. Disregard this, Disregard that.
This company like many of its type are cyclical.
Forward pe is as bogus as it gets, used by careless investors to justify chasing bubble valuations.
Why not pay wait tomorrow's prices tomorrow, if the DIS fairy tale you are selling materializes? You are pricing zero risk into your equation, and from where I sit, that is foolish.
It's been a nice run, but alas, all good thing must come to an end.
At 3 and 1/2 times sales, when the margins get hit, it is a disaster. Hence why the ESPN story is getting so much attention. It is an absurd valuation at this price even if DIS was some sort of cutting edge growth play.
DIS is hardly a growth company, it is a mature entertainment company that has had a nice run on earnings. You are confusing economic cycles with growth. It will drop a bomb when the first earnings surprise hits. Never disregard what the market is telling you.
After Christmas the DIS hype will be all played out, if it hasn't been already. Nobody gives a #$%$, at least not normal people.
Great stock for the job. Anyway, Merry Christmas to all, including the feel good investors amongst us (they know who they are).
And if they earned 7 a year it would still be 15 times earnings and over 3 times sales. A hefty premium for an entertainment company. But, go ahead, pay tomorrow's prices today, just in case the myth of unlimited growth materializes.