In the opinion of the author, when Disney announces that it's re-opening theme parks, we're over the hump on this CV thing. It's stock will soon take off like a rocket when insiders are informed of the decision. A few days thereafter, we will see the news. Last year the company made 26,225/69,570 = 38% of its revenue from theme parks. These have been closed; obvious expectation: a crusher to the bottom line; hence, the dramatic decline of the equity price. When parks re-open, and this cash flow returns, expect their stock valuation to recover. imho, Memorial Day at the latest, so that they get the summer traffic. Disney will really take center stage, because it's in T's beloved Dow. Also, as anyone who's ever been to a crowded theme park will attest, there's a lot of personal contact with people from across the globe. It's the centerpiece. Ref: https://thewaltdisneycompany.com/app/uploads/2019/11/q4-fy19-earnings.pdf
On Friday afternoon DIS announced “parks will be closed indefinitely”. SIX announced today they will be closed “until at least mid May” Florida and Cali are at least a week or two behind NYC Corona curve so I don’t see DIS opening before May
Agreed; regardless, definitely put DIS on your radar. A big move up in price is a key indicator--probably over the weekend. What's the opposite idiom of "canary in the mine?" A canary stops singing and dies when when the air goes bad in a mine... can we say "the canary comes back to life?"
Yeah I have DIS on my radar for a buy and hold Think Disney plus will be a “must have” for anyone with kids. Can’t put a price tag on peace and quiet in the house so $5-$10 a month for the kids to watch DIS tv is priceless
Good premise, I wonder if mass psychology has finally changed? Watching how people keep ten feet away from each other in Costco and Kroger while freaking out if you get too close is a trip. Have people become socially averse once the guidelines are lifted? I like your idea and DIS, just wondering how deeply imbedded fear will remain afterwards.
Thank you. Good point--they certainly can't redesign every ride to allow six feet between passengers. I imagine that they'll institute some policies... like you can only go on rides with a mask... and then sell them at "Mickey's Mask Kiosk" for $50 each...
Thing is, next fiscal is going to look a lot different. People are probably not going to theme parks as much as last year, definitely not more than last year. Also, disney parks are not cheap, people are going to lose jobs which obviously hits demand for theme parks. I'm not saying your wrong, just offering my two cents.
If they can't reopen by Memorial weekend (which I truly doubt they can) earliest I believe they could reopen is July 4th weekend. If that is the case insiders got awhile before loading up.
DIS better hope their park visitor/newsviewership demo skews heavily towards Fox News: (Pew Research) % of U.S. adults who say Donald Trump is doing an excellent job at responding to the coronavirus outbreak, by main source of political news Fox News: 63% CBS: 24% NBC: 15% ABC: 14% CNN: 7% MSNBC: 2% NPR: 2% New York Times: 1% Because their most excellent Prez is dying to get things back to abnormal lol.