Tuesday, February 5, 2008

Disney crushes estimates!! As advertised!

Last week I had this to say about Disney:

But Disney's (DIS 28.68) stock is absurdly cheap at these levels. You can buy it for the theme parks and their other assets and get it's 80% ownership of ESPN thrown in for free! Beside the Disney Channel, A&E, Lifetime, and ESPN, you have 10 TV stations; of which six are located in the top ten markets in the US, and 5 radio stations and radio Disney, and the websites ABC.com and Disney.com. Throw in Hannah Montana, Pixar, Disney Cruises, Walt Disney World, Disneyland, Tokyo Disney, 51% of Disneyland Paris, 43% Disney Hong Kong, the resorts, the vacation clubs, and it's Film and entertainment division, you have assets that can't be duplicated at 13x earnings, and this time at the bottom in the stock price, you don't have the Bass Brothers puking up their stock in a margin call.
http://aaronandmoses.blogspot.com/2008/01/disney-in-bargain-territorty.html

But a week ago, Citigroup, with their research staff of millions and millions of dollars said to sell Disney and put a target of 26!!! Are you kidding me? Citigroup downgraded Disney after "their databases indicated a slowdown in Parks is likely."

The stock is trading up in the afterhours to $31.45! Hey Citigroup, nice call on the sale! Hah!

"Their databases indicated...." It never ceases to amaze me how people fall for the Wall Street "channel checking" that these brokerage firms supposedly do!

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