You take it, Dan. I’m out. My head hurts.
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Disney sees studio revenue soar 21% after 'Black Panther' crushed expectations
- Thread starter winstongator
- Start date
And therefore, had there not been a split, the stock price would have gone to $240. As Mr Incredible notes, Math is Math.
If a company is worth $100 billion and has 1 billion shares outstanding, each share is worth $100. If the company does a 2 for 1 stock split, it’s still worth $100 billion, and now each of the 2 billion shares will be worth $50, and each holder of shares will have twice as many of them. That’s it —a stock split gives you two fifties for your hundred.
Crap...I said I was out, but they pulled me back in.
MerlinTheGoat
Well-Known Member
I may regret sticking my head into this beehive (but hey everybody needs a laughing place). Regarding the debate about hotel room occupancy manipulation, the idea didn't come from nowhere. @ParentsOf4 has quite a few posts regarding this matter. Here are a few-
https://forums.wdwmagic.com/threads/why-walt-disney-world-needs-a-5th-theme-park-by-2025.893463/
https://forums.wdwmagic.com/threads/the-chit-chat-chit-chat-thread.892190/page-4661#post-7366857
One detail mentioned was that in the occupancy reports, there are different ways in which regular rooms and DVC rooms are counted and factored into the percentages. ParentsOf4 states that Disney is converting regular rooms into DVC rooms in order to play with the numbers. Though I don't know how much of an effect this has on the occupancy reports, or if there's anything technically "wrong" about them doing it.
https://forums.wdwmagic.com/threads/why-walt-disney-world-needs-a-5th-theme-park-by-2025.893463/
https://forums.wdwmagic.com/threads/the-chit-chat-chit-chat-thread.892190/page-4661#post-7366857
One detail mentioned was that in the occupancy reports, there are different ways in which regular rooms and DVC rooms are counted and factored into the percentages. ParentsOf4 states that Disney is converting regular rooms into DVC rooms in order to play with the numbers. Though I don't know how much of an effect this has on the occupancy reports, or if there's anything technically "wrong" about them doing it.
Jimmy Thick
Well-Known Member
The obvious hope would be the stock split of the $100 dollar share into two $50 dollar shares would in turn in time turn into $100 dollar shares themselves.
Root for the company share buy backs, woo hoo!!!
EricsBiscuit
Well-Known Member
What's eye opening to me is how P&R jumped so high in profits. I guess in a theme park after a certain threshold in attendance is reached, the new guests are more profit.
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Luigi
Well-Known Member
Let me check...nope. BS.
good one
larryz
I'm Just A Tourist!
Welcome back. The value proposition of the split is when the company shares grow in value (again). Your two fifties will become two hundreds again. And long term, if you're so inclined, that means you can then sell off half your holdings and still have what you had to start with.
Oh, and please note on the chart I referenced... some of those splits were 3:1 and 4:1... and when the stock reaches split territory again...
WDWTank
Well-Known Member
People still continue to visit the parks, and will do so for many generations to come. Theme parks are VERY profitable!
Bairstow
Well-Known Member
So you don't think there is a large contingent in this country opposed to the sort of racial and gender inclusivity championed by a movie like Wrinkle? Because I need only to direct you to the comment section of any of its trailers on YouTube to show you that it exists.
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EricsBiscuit
Well-Known Member
No because if you didn't split the shares would be $200. Look at Brk-A. Splitting is a dumb move. It's a waste of time.
Kman101
Well-Known Member
Personally I don't think he is. I'm not excited for Solo at all. I wish I were. I'm not in any rush to see it.
Frankie The Beer
Well-Known Member
That's not how a split works.
If a stock splits its usually priced high and scares investors to stop buying it, a split lowers the price and gets it active again. Second about value. No matter how many shares a stock splits it will always have the same value of what it did before the split. Disney right now could have a value of say 100 billion dollars. If it splits 4 to 1, its still values at 100 billion dollars. If it earns value after the split, say 200 billion dollars if the split never took place it would still be worth 200 billion dollars but the stock price would be very high. Splits don't make you money, they just make it easier for traders.
Profit margin for the Parks and Resort segment are significantly higher than 5 years ago. This quarter 5 years ago, margins were 11.6%. This past quarter they were 19.6%. That is a huge increase.People still continue to visit the parks, and will do so for many generations to come. Theme parks are VERY profitable!
disneyflush
Well-Known Member
What do you think is causing such a drastic increase?
larryz
I'm Just A Tourist!
When's the last time you bought a share of Berkshire-Hathaway?
Yes, it's an extreme example, but sub-100 stocks are easier to buy and sell for non-institutional investors.
Higher revenue combined with some cost cutting. To some degree, an incremental guest adds directly to profit - park is staffed the same. Other things, hotels, food as examples, become more profitable as they get closer to 100% capacity. Breaking that down, higher prices combined with increased attendance. With Pandora, TSL & SWGE, I see continued price increase and continued increased attendance. I really only follow WDW, but it might be financial improvements internationally. The international park expansions seem pretty awesome. You can go back through the quarterly and annual reports and they give a paragraph or two of info. Annual reports have % occupancy numbers, so you can guess how that drives things.
EricsBiscuit
Well-Known Member
I own class b shares. But I see your point
Luigi
Well-Known Member
Yeah...I don't tend to take the anonymous, cowardly opinions of those on Youtube with any sort of sincerity or as a meaningful reflection of civilized society.
There are people who still think the Earth is flat on Youtube.