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Bad News For Disney Stocks
- Thread starter kookie1
- Start date
Hyperion93
Member
Well Disney isn't exactly one of those Company that is ALWAYS up and good, it's usually pretty level. I hope it's up soon though.
If you hadn't noticed.
Dow closed down 390 today. The seventh worse loss ever, lowest the market has been in nearly 4 years.
This marks 9 straight weeks that the market has closed down for the week.
Last week is the biggest decline for a week ever. This week may have beat that.
- - - - - - - - - - - -
Disney is a big company that will often follow the market trends.
Plus you have Vivendi and AOL (2 of Disney's biggest competitors in their sector) doing terrible right now, which has helped drag down Disney.
Dow closed down 390 today. The seventh worse loss ever, lowest the market has been in nearly 4 years.
This marks 9 straight weeks that the market has closed down for the week.
Last week is the biggest decline for a week ever. This week may have beat that.
- - - - - - - - - - - -
Disney is a big company that will often follow the market trends.
Plus you have Vivendi and AOL (2 of Disney's biggest competitors in their sector) doing terrible right now, which has helped drag down Disney.
mickclub1955
Member
Yeah, it looks like gone are days of three for one splits. At least for a while anyway. Hey lets all go to WDW and spend some money. Maybe it will go up.
jmarc63
New Member
Originally posted by mickclub1955
Yeah, it looks like gone are days of three for one splits. At least for a while anyway. Hey lets all go to WDW and spend some money. Maybe it will go up.
here is a list of the split history.l; there have been more in recent years . also after this thing bottoms out this might be a buying opurtunity here .
http://disney.go.com/corporate/investors/stockinfo/splithistory.html
jmarc63
New Member
thats why I am waiting to buy when it hits around $15. My broker figures that is the "support " level that it will atain before Disney is in trouble. BTW DIS closed at $17.660 on friday. If I wait to buy at that point I could get another 66 shares. i'm glkad I didn't buy at $40 a few years ago.
I dont see how Worldcom can't avoit bankrupcy. now one seems to be in the position to bail them out.
jmarc63
New Member
Worldcom files for Bankrupcy
Here you go from reuters filed today Worldcom files for bankrupcy
WorldCom Files Chapter 11 Bankruptcy
Updated 11:35 PM ET July 21, 2002
By Jessica Hall
PHILADELPHIA (Reuters) - WorldCom Inc. filed the largest U.S. bankruptcy on Sunday after the long-distance telephone and data services company buckled under a $3.85 billion accounting scandal and a mountain of junk-rated debt.
WorldCom's accounting debacle has deepened investor unease on Wall Street in recent weeks, sending markets to their lowest level since 1998, and prompted President Bush to call for a government crackdown on unethical business conduct.
"Because we're going to restructure our balance sheet and reduce our debt, we think we can emerge from the Chapter 11 process a stronger and healthier company," WorldCom Chief Executive John Sidgmore said in a telephone interview.
WorldCom, which has 60,000 employees and operations in 65 countries, said it expects to hire a restructuring expert to aid the current management team, and it aims to emerge from Chapter 11 in about nine to 12 months. The bankruptcy does not include its international operations.
The company, which has more than 20 million customers and transmits half the world's Internet traffic, said it will have access to up to $2 billion in debtor-in-possession (DIP) funding to keep operating, maintain its network and pay employees under the bankruptcy reorganization.
The Clinton, Mississippi-based company plans to appear at the U.S. Bankruptcy Court for the Southern District of New York on Monday to seek approval for the DIP funding.
The trouble at WorldCom, which listed $107 billion in assets and $41 billion in debt, followed that suffered by high-flying companies like energy trader Enron Corp. and Global Crossing Ltd., which crumbled into bankruptcy amid a crush of accounting investigations by federal regulators.
WorldCom last month disclosed it improperly recorded $3.85 billion in expenses and fired its former chief financial officer, Scott Sullivan, who it alleged orchestrated the accounting debacle.
Former chief executive Bernie Ebbers resigned under pressure in April. WorldCom was charged with fraud by the U.S. Securities and Exchange Commission and faces lawsuits from several state pension funds, which alleged it provided misleading information during a 2001 bond offering.
DEBT-FOR-EQUITY SWAP EXPECTED
The company expects to reduce its debt through a debt-for-equity swap that would give bondholders an ownership stake in the reorganized company, Sidgmore said.
"We've had very positive conversations through our lawyers and bankers with the bondholders so far. ... I think we're going to be able to convince people that owning our equity is a good deal. As we emerge from bankruptcy stronger I think the company will have very good prospects," Sidgmore said.
A lawyer for the bondholders could not be immediately reached for comment. WorldCom's current stockholders will recover little, if any, value for their investment.
Shares of WorldCom closed Friday at 9 cents on Nasdaq. The company's stock, which rocketed to $64 in 1999, had made it one of the darlings of the Wall Street bull market. The drop epitomized the bombed-out telecom industry that collapsed in a glut of capacity, excess debt and accounting scandals.
The $2 billion funding pact, as well as savings from interest payments on debt, will cover WorldCom's funding requirements over the next year, Sidgmore said.
"We think ... we'll emerge from bankruptcy without any other additional requirements," Sidgmore said. "I think it's fair to say that we will use some of the DIP financing early on, but we will leave the lion's share of it untapped."
The bankruptcy status, which shields it from its creditors and debts, will free up about $2 billion a year in interest payments WorldCom normally must pay on its massive debt load, Sidgmore said.
"That's really the overhang on WorldCom for the past year and half, or two years. With the mountain of debt we had ... (it) requires a couple of billion a year in interest payments. And that kind of gets in your way," Sidgmore said.
Citigroup Inc., J.P. Morgan Chase & Co. and General Electric Co.'s GE Capital financing arm agreed to arrange the funding, which will be backed by the company's assets. WorldCom expects to get $750 million immediately.
WorldCom's bankruptcy filing listed J.P. Morgan Trust Co. National Association as the largest unsecured creditor, with bond debt of $17.2 billion. It said Mellon Bank N.A. holds $6.6 billion of WorldCom debt, while Citibank N.A. owns $3.29 billion.
WorldCom said it has not lost any of its major customers and it did not expect the bankruptcy to hurt service.
"With the DIP financing, we're much more stable financially than we would have been under another scenario. I see no chance of service disruptions or network outages or all these things that people have been concerned about," Sidgmore said.
Since WorldCom's problems escalated, rivals such as Sprint Corp. and AT&T Corp. said they had seen a spike in inquiries from customers looking to switch carriers. J.P. Morgan analyst Marc Crossman recently estimated WorldCom could lose as much as $700 million in quarterly revenues if corporate and government clients defect to rival carriers.
"The WorldCom brand is going to take a big hit too. If they do emerge, they will have a big job reinvigorating the brand since customers don't associate it with good things anymore," said independent telecommunications analyst Jeffrey Kagan.
Here you go from reuters filed today Worldcom files for bankrupcy
WorldCom Files Chapter 11 Bankruptcy
Updated 11:35 PM ET July 21, 2002
By Jessica Hall
PHILADELPHIA (Reuters) - WorldCom Inc. filed the largest U.S. bankruptcy on Sunday after the long-distance telephone and data services company buckled under a $3.85 billion accounting scandal and a mountain of junk-rated debt.
WorldCom's accounting debacle has deepened investor unease on Wall Street in recent weeks, sending markets to their lowest level since 1998, and prompted President Bush to call for a government crackdown on unethical business conduct.
"Because we're going to restructure our balance sheet and reduce our debt, we think we can emerge from the Chapter 11 process a stronger and healthier company," WorldCom Chief Executive John Sidgmore said in a telephone interview.
WorldCom, which has 60,000 employees and operations in 65 countries, said it expects to hire a restructuring expert to aid the current management team, and it aims to emerge from Chapter 11 in about nine to 12 months. The bankruptcy does not include its international operations.
The company, which has more than 20 million customers and transmits half the world's Internet traffic, said it will have access to up to $2 billion in debtor-in-possession (DIP) funding to keep operating, maintain its network and pay employees under the bankruptcy reorganization.
The Clinton, Mississippi-based company plans to appear at the U.S. Bankruptcy Court for the Southern District of New York on Monday to seek approval for the DIP funding.
The trouble at WorldCom, which listed $107 billion in assets and $41 billion in debt, followed that suffered by high-flying companies like energy trader Enron Corp. and Global Crossing Ltd., which crumbled into bankruptcy amid a crush of accounting investigations by federal regulators.
WorldCom last month disclosed it improperly recorded $3.85 billion in expenses and fired its former chief financial officer, Scott Sullivan, who it alleged orchestrated the accounting debacle.
Former chief executive Bernie Ebbers resigned under pressure in April. WorldCom was charged with fraud by the U.S. Securities and Exchange Commission and faces lawsuits from several state pension funds, which alleged it provided misleading information during a 2001 bond offering.
DEBT-FOR-EQUITY SWAP EXPECTED
The company expects to reduce its debt through a debt-for-equity swap that would give bondholders an ownership stake in the reorganized company, Sidgmore said.
"We've had very positive conversations through our lawyers and bankers with the bondholders so far. ... I think we're going to be able to convince people that owning our equity is a good deal. As we emerge from bankruptcy stronger I think the company will have very good prospects," Sidgmore said.
A lawyer for the bondholders could not be immediately reached for comment. WorldCom's current stockholders will recover little, if any, value for their investment.
Shares of WorldCom closed Friday at 9 cents on Nasdaq. The company's stock, which rocketed to $64 in 1999, had made it one of the darlings of the Wall Street bull market. The drop epitomized the bombed-out telecom industry that collapsed in a glut of capacity, excess debt and accounting scandals.
The $2 billion funding pact, as well as savings from interest payments on debt, will cover WorldCom's funding requirements over the next year, Sidgmore said.
"We think ... we'll emerge from bankruptcy without any other additional requirements," Sidgmore said. "I think it's fair to say that we will use some of the DIP financing early on, but we will leave the lion's share of it untapped."
The bankruptcy status, which shields it from its creditors and debts, will free up about $2 billion a year in interest payments WorldCom normally must pay on its massive debt load, Sidgmore said.
"That's really the overhang on WorldCom for the past year and half, or two years. With the mountain of debt we had ... (it) requires a couple of billion a year in interest payments. And that kind of gets in your way," Sidgmore said.
Citigroup Inc., J.P. Morgan Chase & Co. and General Electric Co.'s GE Capital financing arm agreed to arrange the funding, which will be backed by the company's assets. WorldCom expects to get $750 million immediately.
WorldCom's bankruptcy filing listed J.P. Morgan Trust Co. National Association as the largest unsecured creditor, with bond debt of $17.2 billion. It said Mellon Bank N.A. holds $6.6 billion of WorldCom debt, while Citibank N.A. owns $3.29 billion.
WorldCom said it has not lost any of its major customers and it did not expect the bankruptcy to hurt service.
"With the DIP financing, we're much more stable financially than we would have been under another scenario. I see no chance of service disruptions or network outages or all these things that people have been concerned about," Sidgmore said.
Since WorldCom's problems escalated, rivals such as Sprint Corp. and AT&T Corp. said they had seen a spike in inquiries from customers looking to switch carriers. J.P. Morgan analyst Marc Crossman recently estimated WorldCom could lose as much as $700 million in quarterly revenues if corporate and government clients defect to rival carriers.
"The WorldCom brand is going to take a big hit too. If they do emerge, they will have a big job reinvigorating the brand since customers don't associate it with good things anymore," said independent telecommunications analyst Jeffrey Kagan.
Talsonic
Account Suspended
It's your money, learn how to invest!
Purchasing ANY equities now is not worthwhile. The market is BEARISH and will most likely go sideways (if not down) for the next decade. If you missed the BULL market from 1983 until 2000 (biggest profits in history...up 1500%) then you just missed the boat. Buying more than 4% of any one stock is foolish. Can you say diversification? Hold your money in cash reserves right now. Investment opportunities may come later. Also, don't listen to brokers.
Purchasing ANY equities now is not worthwhile. The market is BEARISH and will most likely go sideways (if not down) for the next decade. If you missed the BULL market from 1983 until 2000 (biggest profits in history...up 1500%) then you just missed the boat. Buying more than 4% of any one stock is foolish. Can you say diversification? Hold your money in cash reserves right now. Investment opportunities may come later. Also, don't listen to brokers.
the entire stock market is in a state of stock and depressed to new lows. i would not worry to much in the long term. I would not sell it if you own it.I wouldn't buy at the moment the stock market as a whole is too skittish. Overall the disney company as a whole has tried to diversify itself and will rebound. the news of the construction of the hong kong and shangai parks should boost their overall revenues in the future. the Eastern part of the world aside from Tokyo has not been saturated with the disney culture yet.:sohappy:
so don't worry.
so don't worry.
Man, you've gotta love Wall Street:
Today's quotes:
Disney: $16.00, down .53 cents, or 3.2%
Vivendi Universal: $15.55, up 59 cents, or 3.9 %
AOL Time Warner: $10.90, up $1.26, or 13%
Viacom: $34.35, down 70 cents, or 2%
News Corp: $18.70, down 20 cents, or 1%
So, out of all of the major media companies, Disney was the biggest loser today. For the record, the Dow Jones, Nasdaq, and S&P were up 78 points, 22 points, and 14 points repectively.
Though one day is hardly an indication of a company's performance, the fact that they were the worst performing media company is newsworthy. The fact that they also didn't follow the market also kind of surprised me. Usually if the Dow is up, Disney is up. Not today...
Today's quotes:
Disney: $16.00, down .53 cents, or 3.2%
Vivendi Universal: $15.55, up 59 cents, or 3.9 %
AOL Time Warner: $10.90, up $1.26, or 13%
Viacom: $34.35, down 70 cents, or 2%
News Corp: $18.70, down 20 cents, or 1%
So, out of all of the major media companies, Disney was the biggest loser today. For the record, the Dow Jones, Nasdaq, and S&P were up 78 points, 22 points, and 14 points repectively.
Though one day is hardly an indication of a company's performance, the fact that they were the worst performing media company is newsworthy. The fact that they also didn't follow the market also kind of surprised me. Usually if the Dow is up, Disney is up. Not today...