# Disney (DIS)



## Erome (Jan 11, 2011)

They just threw down ALOT of money for Lucasarts, and are ramping things up for 3 films over the next 6-7 years.

Anyone interested in this stock for a long term hold?


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## Doug2000 (Apr 6, 2011)

Erome said:


> They just threw down ALOT of money for Lucasarts, and are ramping things up for 3 films over the next 6-7 years.
> 
> Anyone interested in this stock for a long term hold?


Ooooh, I thought you were going to tell me about your trip, I so love Disney.

I haven't looked in a while, I thought the stock was like the park tickets, expensive.


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## PMREdmonton (Apr 6, 2009)

Doug2000 said:


> Ooooh, I thought you were going to tell me about your trip, I so love Disney.
> 
> I haven't looked in a while, I thought the stock was like the park tickets, expensive.


They are probably a bit expensive but I do like them long-terms. I would certainly buy on any dip that appears. I think this would be a good name to play by selling out of the money puts and accept the premiums until the dip occurs to your buying price. Alternatively you can buy and sell puts if you believe it to be a bit expensive and lower cost by that fashion. They do pay a dividend but yield is not particularly high (1.2%) although it is regularly growing.

If you're looking for a company with a moat, this one has a humongous one: Disney theme parks, ESPN, Pixar studios, Marvel comics, Disney movies. I doubt you will lose any money for a long-term hold but again they are expensive on a P/E basis (16.5) but will probably always be so.

If you want to play puts, I'd consider selling one at 46 for $1.87 for the April option would give about a 3.9% yield on current price basis and 4% on the strike price over a hold period of 5 months - this is about 3 times the current dividend (60 cents) which is paid once a year in December.

This is one that I've had my eyes on for awhile, too. I do like the LucasArts acquisition although it was quite expensive - it should over time be well monetized them at a better rate than LucasArts. The plan for 3 more movies and associated merchandising should do very well. I really don't feel Lucas did a good job with the last 3 films and I hope Disney will do better.


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## MrMatt (Dec 21, 2011)

I like the Disney as a brand, and they have some really top notch staff, from the products to marketing and negotiation.
They're ruthless and aggressively protect their products and their margins.
They're good and able to monetize, but I don't see them breaking out and making much more.

They already price their products at a premium, and keep them there quite effectively too.
Try to buy a Premier Disney movie title cheap, it doesn't happen very often.

I don't know how much more money they can squeeze out.


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## PMREdmonton (Apr 6, 2009)

I'm sure people said that 10 years ago. Good management is good management. Moats are moats. As the emerging markets develop they'll probably want access to Disneyland type stuff too and there will be a huge new market for them to exploit. Then there is the whole aspect of sending out media to mobile devices. Then there is the growing strength of their ESPN division. Then there is the strength of their movie division, Pixar and now Lucasfilm studios which will bring new expertise to Disney which may help their other movie divisions and not just give them control of the Star Wars franchise.

I am really confident that over time they will monetize the Star Wars franchise at a much better rate than Lucasfilm has (not that they haven't done a good job but they aren't Disney).

They've been on a bit of a run so I'd love to buy it in a patch of weakness. 

Right now I'm of the belief that the real power in the media belongs to the content creators and Disney is the king of the mountain.


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## MrMatt (Dec 21, 2011)

Just looking at this again, haven't seen any weakness in the stock.
I guess they're part of the flight to quality, or is it really worth that much more.


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## marina628 (Dec 14, 2010)

I am up 94.77% on Disney in past 14 months


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## MrMatt (Dec 21, 2011)

marina628 said:


> I am up 94.77% on Disney in past 14 months


Notice I thought about this in oct 2012? Yeah, I think a lot.
To be fair, I've done quite well on the other choices.
My third worst pick is up only 40-50%, so I'm pretty happy.


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## gibor365 (Apr 1, 2011)

marina628 said:


> I am up 94.77% on Disney in past 14 months


Congrats! It's too late for DIS who is at 52 weeks high... try to find another stock who will be arounf 94.77% gain in 14 months  
P.S. more than 20% of this gains is contributed to FX rate?!


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## fatcat (Nov 11, 2009)

marina628 said:


> I am up 94.77% on Disney in past 14 months


how are you getting that ? i bought in sept-13 and again in jun-14 and i am up 45%

google finance shows dis up 39% from jan-14 to mar-15 ?

i am not including divvys which are 1% or so

as to what they are worth, there is nothing like them on the planet ... espn is a cash cow, they are widely diversified into all corners of media, they have theme parks, real estate, cruise lines, licensed characters and are hugely popular in asia and their brand has remained untarnished for almost 100 years

it's not too late for disney


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## londoncalling (Sep 17, 2011)

it's not too late but I wouldn't be buying today.


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## Synergy (Mar 18, 2013)

gibor said:


> Congrats! It's too late for DIS who is at 52 weeks high...


That's what everyone was saying last year!


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## marina628 (Dec 14, 2010)

I see this on my td performance screen 96.15% today and yes it includes the forex and I dont know my exact purchase dates.


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## marina628 (Dec 14, 2010)

i bought it sometime between november 24 2013 and january 2014 ,dont know exact dates but it was in that range.


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## Plugging Along (Jan 3, 2011)

Instead of baby gifts, my oldest recieved shares of DIS instead, that was 9 years ago, I think the share price was around $25

That was a much better gift than an expensive stroller


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## fatcat (Nov 11, 2009)

in us dollars i get a simple return of 46.83% from tdw which closely matches google finance
i am not using any forex


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## marina628 (Dec 14, 2010)

It was trading around $70 when i bought it and cad was worth about a $1.05 plus dividends ,my numbers include the FOREX .I buy and hold all my dividend stocks and will probably buy more down the line as I have probably 22+ years before I will need this.It is 15.5% of my RSP.


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## Toronto.gal (Jan 8, 2010)

fatcat said:


> 1. there is *nothing like them on the planet *...
> 2. espn is a *cash cow*, they are widely diversified into all corners of media, they have theme parks, real estate, cruise lines, licensed characters and are hugely popular in asia
> 3. brand has remained untarnished for almost *100 years*


*1.* Indeed a unique & magical empire, and a beloved name recognized all over the world. It's one of the first US stocks I purchased 5 years ago.
*2.* Quite the business model & global reach, especially in the last few years thanks to the tech world.
*3.* Here is a timeline I posted previously:
http://en.wikipedia.org/wiki/Timeline_of_The_Walt_Disney_Company

Given the current price & past stock splits [last one 17 years ago], I'm guessing there will be a 2:1 or even 3:1 split should the price continue to increase.


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