As of this morning, Disney stock is sitting at $84.02 a share. Not a lot has happened with DIS over the past couple of months. Yet, some think that there could be new life welling up inside of the Mouse’s shares.
At first glance, it doesn’t seem likely. Even Ike Perlmutter’s sudden move to transfer control of his massive stake in the Walt Disney Company to activist investor Nelson Peltz didn’t move the needle much a little in late October.
However, the stock price has been holding in the $80 range. It’s still a far cry from what Disney stock was before the significant plummet during the first half of this year.
InvestorPlace feels that “now” is the time to pick up Disney stock, even going so far as to get investors to cave under the fear of missing out (FOMO). After such a decline, lackluster box office returns, and flatlining park attendance, what would make anyone think a surge is incoming?
The first reason is dividends. Disney stock has been dividend-free for years, but the small yields are set to return sometime in December. This perk could drive more investors to jump on board.
The next is the possibility that earnings are “expected to double” in the fourth quarter’s results. The fiscal quarter closes on November 8th, so we’ll know sooner or later if this is the case.
The third, and what I believe is the weakest reason, is the number of parks and intellectual properties the Walt Disney Company owns. Sure, Disney stock is backed by a vast number of channels, parks, ISPs, and such, but it’s not being handled well.
Disney stock saw a lot of gains after Star Wars: The Force Awakens renewed interest in George Lucas’s creation. However, since then, that brand has been on the decline. The same with Pixar. We charted the studio’s performance, and the past few years have been the worst in its history!
Now, I’m no longer an investor in Disney. I can’t and won’t give you financial advice. I will, however, advise you to be very cautious when it comes to trading based on limited factors, especially when a company is undergoing a massive power struggle.
[Source: Business Insider]
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