So I've noticed a strange, unnatural trend over the past few weeks with Disney's stock...it's been going up :eek: With a park that can't get attendance to save its life, and a meeting coming up to "critical issues" which have "undermined investor confidence" in the entertainment company (thanks cyberRoo for the article), and a bear market in general, what is causing this mini-surge?

My only guess is the coming holiday season. The success, both in increased park attendance and in merchandising, of HMH last year, plus the guaranteed cash flow that comes every December, I guess people are looking for a quick buck over the next couple of months. Oh yes, and the release of Monster's Inc and Lilo and Stitch on DVD, two titles guaranteed to generate serious spending.

I'm guessing that the huge box-office success of "Signs" is probably driving the stock price increase more than anything else. Big hits at the studio tend to drive success in a lot of parts of the company.

-Jeff

I think the stock is creeping up with the constant press encouraging Eisner to step down. Investors may finally gain some confidence by having their concerns about the company's direction noted in public... and are encouraged by the seemingly imminent change in the wind.

Let's hope their optimism is well founded!

Originally posted by merlinjones
I think the stock is creeping up with the constant press encouraging Eisner to step down. Investors may finally gain some confidence by having their concerns about the company's direction noted in public... and are encouraged by the seemingly imminent change in the wind.


I find that doubtful. That kind of massive management turmoil generally drives stock prices down, not the other way around. Smart investors do not typically gamble with that type of uncertainty.

I still think that the $200 million grossing blockbuster combined with optimism over upcoming high-profile video releases likely are the main factors in the stock price improving. The stock increase might also reflect some optimism about ABC's fall season, although I'm not really sure where that optimism would be coming from.

-Jeff

I think anyone can see that Disney can't do much worse than current management. If it's cheap and an executive enema is on the way, why not gamble and BUY? If Eisner stays SELL!!!

Originally posted by merlinjones
I think anyone can see that Disney can't do much worse than current management.

I think most people should be able to see that Disney could do >far< worse if they ended up with the wrong management. Despite its current problems, the company is still profitable and still in business.

One really only has to look at Vivendi's mismanagement of Universal to see how much worse it could get if the company were stuck with completely ineffective management.

-Jeff

Originally posted by merlinjones
.... executive enema.....

:D :D :D :D

>>One really only has to look at Vivendi's mismanagement of Universal to see how much worse it could get if the company were stuck with completely ineffective management.<<

Frankly, I think breaking up Disney would service Walt's film library and Disneyland better than the company in its current form. They have no appreciation for their historic assets.