Disney Stock still a value?

CNN Money interviews a plethora of analysts on the reasons behind Disney’s 20% growth in stock price this year. Trending up while most media stock is trending down. Although it’s not mentioned in the piece, I seem to recall the stock took a pretty large jump when Barron’s reported that Apple was considering a takeover since Disney stock appeared undervalued.

The rest of the story considers whether Disney is still a good buy. I think that depends on how much faith you put in Bob Iger and whether or not he ‘gets’ that "quality will out". Eisner had a version of that once "excellence will out", but he lost that along the way. How long can Iger hold out against the forces of stock holders clamoring for profits through cuts instead of quality?

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One thought on “Disney Stock still a value?

  1. James Cole

    Disney is a GREAT value stock right now. PE around 12. Here’s why an economic slowdown will HELP Disney, not hurt it:

    More nights in = more Disney movies on those great big screens people have already bought. Also more watching of the Disney channel which my kids cant get enough of. Hannah Montana, High School Musical.. need I say more.

    Less foreign travel because of poor exchange rates and less disposable income = more Disney theme park visits. Eurodisney also does great because of the exchange rate boosting profits abroad, even on flat attendance.

    “Hunker-down” mentality: tough times means greater emphasis on “family values.” Nothing screams family values better than the Disney branding (even though WE all know better….:)

    Even though DIS has been flat to slightly down lately, Disney will finish ’08 at $36-38. You heard it here first…

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