Tag: DIS

Mickey Mouse – a pair of safe hands?

mickey-mouse-dollarCome on, who doesn’t like a bit of Mickey? Disney is that happy place where everything is just fine. Isn’t it?

Well, actually there is a surprising amount of fear in many classic Disney movies, death is frequent though not often bloody and “scenes of peril” are practically essential before the hero to makes their move. But essentially good always wins through and you can rely on Disney to let you leave a movie with a smile and sense that all is well with the world.

Having been to Disneyland Paris many times now, I am always impressed at how everything is kept so perfect. neat and tidy. The rides and attractions seem to be just as they might have been on opening day (unlike our UK counterparts!) and you do feel like you are in another, better world. Our kids don’t even realise it is in France, not because they can understand all the announcements, but it doesn’t feel like any particular country, just Disneyland.

But what about the business end? Is this a company one should invest in?

Well obviously yes. Let’s face it, Disney is nowhere near closing its books, in fact with just the Star Wars franchise alone as well as all the other enduring assets they have – Frozen for one being a HUGE success and no sign of it slowing down – they are well set to enjoy many more years of financial success.

So what of the stock? Is this a time to buy?

Well this is what brought me to take this subject today. You see, one other area that we are less aware of in the UK is their US TV presence and what they broadcast. Now I don’t know the details, it doesn’t really matter, but I do know they have been getting disappointing figures here, I think over some sports fixtures (???) and as a result, the stock price has been dropping off since it peaked in 2015, this coupled with the general anxiety over stocks before the US Election results is, I believe, making a good buying opportunity for Disney Stock.

When it peaked in 2015 it got to around $120 per share, it is now down to around $92 per share. Though nothing is ever certain, I can’t see this stock going down into the low $80s again so anything around $90 is probably a sure long-term winner. It is very probable that by the end of the year it is back at least to $100 so even if you buy it now at $92.50 that would be roughly a 9% return, in three months….you won’t see that in the high st!

Even if though, things struggle for other reasons, you will be able to sleep at night knowing Mickey is looking after your money. I don’t want to try to be a “Stock picker” here but if you have money to invest, an opportunity like this is surely a safe one. Disney is not likely to go out of fashion, unlike other trends like say Nike for example. The Mouse has been around for 80 yrs and has no sign of dropping out of the race any time soon.

Take the plunge then, make that pension plan for your Grandchildren ‘cos in 40yrs time, those shares are going to be worth…….?

In 2006 they were $25.00. Let’s assume they end this year (as I like round numbers) at $100 again. That’s 400% return in 10 yrs (+ dividends) You can do the math…..s.

May the force be with you,

Chris K.