Tuesday, October 11, 2016

EMSTP - Assessment Report (Walt Disney) - BUY




















Every Man Stock Trading Portfolio (EMSTP)



Walt Disney Company
Assessment
Daniel Thomas Minton, October 11, 2016

Every Man Stock Trading Portfolio (EMSTP)




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Assessment


Every Man Stock Trading Portfolio (EMSTP) is bullish on the Walt Disney Company (DIS).  This assessment will layout the reasons why Disney stock is a must buy stock now and hold for the next 12-24 months.  Currently, Disney stock can be purchased between $91 to $92 dollars a share, its lowest in the last 3 months and only one time in the last 12 months Disney went below $91 dollars a share.  We believe Disney is not only a value stock but has significant growth potential due to the five different sectors (Media, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Gaming) that encompasses the Walt Disney Corporation.

Findings


Every Man Stock Trading Portfolio (EMSTP) will provide the below fundamental and technical findings that supports our buy rating. 

1.        Disney stock price has hit near the bottom at $91 dollars a share.  In the past 10 years, Disney’s stock consistently increased stock price every year.  This is the first time in the past 10 years that Disney has provided shareholders a significant pullback to potentially buy additional shares.



2.       Disney company is a unique and diversified company.  Disney encompasses five different sectors (Media, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive Gaming).  Basically, Disney has multiple companies within one with the purchases of Pixar, Marvel, Lucas Studios, etc. 



3.       Disney company has a strong Chief Executive Officer (CEO) in Mr. Bob Iger.  Mr. Iger is one of the most successful and innovative CEO’s on Wall Street today.  He emphasizes two critical innovation principles across the company: (1) Provides a platform to allow Disney’s workforce to fail and be creative; (2) An open innovation strategy includes looking outside the company to find innovation (examples include Pixar, Marvel and Lucas Studios).



4.      Disney provides 2 to 3 dividends a year at about 1.25 to 1.50%.



5.       EMSTP believes Disney stock will split in the next 12 to 24 months.  Disney has executed a total of 8 stock splits, the last one in 2007.  Disney averages a stock split every 6 to 7 years.  EMSTP believes Disney will look at splitting its stock when it maintains a stock price above $100 dollars a share. 



6.      Disney has successfully opened up a new park and resort in Shanghai China. This is the first mainland resort in China, recent report indicates attendance and revenue have exceeded expectations.



7.       Disney is implementing major changes in the next couple years to existing parks and resorts to support franchise movies like Finding Dory, Frozen and Star Wars. 



8.      Disney is a company that is not scared of taking risks in purchasing companies for billions of dollars (Pixar, LucasFilm, and Marvel).  Recent rumors included Disney purchasing Twitter or Netflix.  Disney strategic acquisitions is second to none on Wall Street.  EMSTP believes Disney should purchase Matel to solidify their consumer products and interactive gaming.



9.      Disney media sector has an excellent long-term plan in expanding the Star Wars movie franchise and converting successful cartoons in real-world live action movies (Lion King, Jungle Book 2, etc.).  2016 Jungle Book was outstanding and nearly made $1 Billion dollars in the theaters.



10.    With the success of the Shanghai China parks and resort, enormous potential exists for expanding Disney throughout China and other countries.

Assessment


EMSTP strongly recommends Walt Disney stock as a buy due to the low stock price, diversified company, future movies and products schedule and success in new countries.  Additionally, EMSTP believes Disney will split their stock in the next 12 to 24 months at the same time purchase additional companies (potentially Matel or Netflix).

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