03-17-2020, 10:22 AM
(03-17-2020, 10:06 AM)fenders53 Wrote:(03-17-2020, 09:58 AM)crimsonghost747 Wrote: Took a look at Disney.It's an average in sort of deal IMO. Their streaming service is killing it last report I saw. The parks will be open before you know it. They are in warm climates mostly. Some trips will be deferred rather than cancelled. I only own a small position. Not trying to be in denial but DIS will be fine. I'd be OK with some cheaper shares though lol. That said, I can think if a good reason to not buy anything until it trades for a 5 PE just to be safe.
I was surprised to see that their park business was a massive part of their overall revenue and earnings. I really expected it to be smaller compared to the rest. So there is that, and then I do recall some ESPN issues a while back, which are probably only going to get worse now that the majority of sports has been cancelled.
A great company, no doubt about it. And I would have been happy to buy it under $100 before this virus thing happened. But now I'd like to see it fall down further before I initiate a position.
I agree it will be fine, and $95 probably isn't a bad point to start averaging down. It's trading at 18X 2020 estimates, which is my fair value PE target. Starting to get interesting, but not a screaming buy to me is all I'm saying. There's a lot of names in discretionary with similar growth and higher yields that are trading at lower valuations. HD, LOW, MCD, ROST, VFC, TJX, SBUX to name a few. DIS might deserve the higher valuation, it is an amazing company.