Tag: The Walt Disney Company (NYSE:DIS)

Analysts' Upgrades For Disney Are A Little Late To The Party

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Recently, The Walt Disney Company (NYSE:DIS) has been on a sustained uptrend moving from $90 in October of 2016 to $109 as of mid-January 2017, logging a solid 21% gain in the process. I wrote several pieces on Disney when the stock was trading in the range of $89-$93 advocating that Disney offered a compelling long-term investment opportunity considering the growth, pipeline, diversity of its portfolio, share repurchase program and dividend. The shares sold-off in a meaningful way, moving from 2016 highs of $120 per share to the low $90s and remaining at that level for months. This 25% decline in the share price presented a buying opportunity in a great large-cap growth company with strong fundamentals. The fundamentals of Disney were stronger than ever despite the temporary ESPN woes. These ESPN issues were being addressed in a variety of ways via Hulu, BAMTech investment, Vice production deal and Sling TV. Once these issues were arrested and clarity with regard to a path forward in returning to growth in this segment was laid out, I posited that these shares would have tremendous upside. These corrective actions have been in the works with the backdrop of all its other segments reporting record numbers. Continue reading "Analysts' Upgrades For Disney Are A Little Late To The Party" →

Analysts' Upgrades For Disney Are A Little Late

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Recently, The Walt Disney Company (NYSE:DIS) has been on a sustained uptrend moving from $90 in October of 2016 to $109 as of mid-January 2017, logging a solid 21% gain in the process. I wrote several pieces on Disney when the stock was trading in the range of $89-$93 advocating that Disney offered a compelling long-term investment opportunity considering the growth, pipeline, diversity of its portfolio, share repurchase program and dividend. The shares sold-off in a meaningful way moving from 2016 highs of $120 per share to the low $90s and remaining at that level for months. This 25% decline in the share price presented a buying opportunity in a great large-cap growth company with strong fundamentals. The fundamentals of Disney were stronger than ever despite the temporary ESPN woes. These ESPN issues were being addressed in a variety of ways via Hulu, BAMTech investment, Vice production deal and Sling TV. Once these issues were arrested and clarity with regard to a path forward in returning to growth in this segment was laid out, I posited that these shares would have tremendous upside. These corrective actions have been in the works with the backdrop of all its other segments reporting record numbers. Continue reading "Analysts' Upgrades For Disney Are A Little Late" →

High-Quality Secured Puts Yield 20% Return

Posted on by The INO.com Team

Overview

I’ve written many articles highlighting the advantages options trading and how this technique, when deployed in opportunistic or conservative scenarios may augment overall portfolio returns while mitigating risk in a meaningful manner. Timing the market has proven to be very difficult if not altogether impossible. However creating opportunities to lock-in the downward movement in a given stock one is looking to own is possible. If a stock of interest has substantially fallen to near a 52-week low, then one has an option to “buy” the stock at an even lower price at a later date while collecting premium income in the process. Alternatively, it's also possible to make money on the option itself without owning any shares of the company via realizing options premium gains as the underlying stock appreciates in value off its lows. This is called a covered or secured put option, covered in the sense that one has cash to back the option contract. Leveraging covered or secured put options in opportunistic scenarios may augment overall portfolio returns while mitigating risk when looking to initiate a future position in an individual stock or looking to make money on the potential appreciation without owning the stock. In the event of a covered put, this is accomplished by leveraging the cash one currently has by selling a put contract against those funds for a premium. Why buy a stock now when you can purchase the stock in the future at a lower price while being paid to do so? Why buy stocks at all when you can make money on the underlying volatility without ever owning the shares? Continue reading "High-Quality Secured Puts Yield 20% Return" →

Disney Pushing New Highs and Breaks All-Time Box Office Record

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

In early September I wrote an article speaking to the fact that The Walt Disney Company (NYSE:DIS) couldn’t seem to get out of its own way when it came to breaking out of its chronic stock slump. Over the past few weeks, Disney has seen a major move towards the $100 threshold after reporting its quarterly results and breaking the all-time worldwide box-office record. This uptick has been buoyed by Doctor Strange, Moana and Rouge One to round out the year at the box office. The stock fell from the $120s in late 2015 to low $90s and had been stuck in the $90 range all throughout 2016. This perpetual slump was almost entirely attributable to the decrease in ESPN subscribers and thus revenue and profit from their Media Networks segment. Excluding ESPN, Disney has been executing well and reporting record numbers throughout its other business segments. Disney has a deep and diversified enough entertainment portfolio to make a compelling case that these ESPN fears are overblown. Disney’s portfolio consists of Marvel Entertainment, Lucasfilm, Pixar, ESPN, ABC, 32% shareholder in Hulu and of course the core Disney franchise (Disney Studios, Disney consumer products, Parks and Resorts and Disney Cruise Line). The revenue stream from these assets is as diverse as the assets themselves. The ESPN franchise within the Media Networks segment generates revenue/operating income that are disproportionate to the amount of the company’s overall revenue and operating profit. Thus, one can see why investors were spooked after two consecutive significant declines in ESPN subscribers and thus numbers over the past three years. The decreases in revenue within this segment have been arrested and on the rebound due to measures put in place at Disney. As this revenue stream slowly recovers with initiatives put in place and investors can rest assure, Disney will likely retrace the $120 level seen in 2015. Continue reading "Disney Pushing New Highs and Breaks All-Time Box Office Record" →

Disney Can't Seem To Breakout

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

The Walt Disney Company (NYSE:DIS) can’t seem to get out of its own way when it comes to breaking out of this chronic stock slump after moving from the $120s in late 2015 to being stuck in the $90 range all throughout 2016. This perpetual slump is almost entirely attributable to the decrease in ESPN subscribers and thus revenue and profit from their Media Networks segment. Excluding ESPN, Disney has been executing well and reporting record numbers throughout its other business segments. Disney has a deep and diversified enough entertainment portfolio to make a compelling case that these ESPN fears are overblown. Disney’s portfolio consists of Marvel Entertainment, Lucasfilm, Pixar, ESPN, ABC, a 32% shareholder in Hulu and of course the core Disney franchise (Disney Studios, Disney consumer products, Parks and Resorts and Disney Cruise Line). The revenue stream from these assets is as diverse as the assets themselves. The ESPN franchise within the Media Networks segment generates revenue/operating income that is disproportionate to the amount of the company’s overall revenue and operating profit. Thus, one can see why investors were spooked after two consecutive significant declines in ESPN numbers in Q4 2015 and Q1 2016. The decreases in revenue within this segment have been arrested and on the rebound due to measures put in place at Disney. As this revenue stream slowly recovers and investors can rest assure, Disney will retrace the $120 level. In the meantime all other segments are performing well and coupled with dividends, share buybacks, a P/E ratio of ~17.0 and currently sitting at a 52-week low (excluding the flash crash in February), I’d be a buyer of the stock at these levels. Continue reading "Disney Can't Seem To Breakout" →