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Buying Disney stock

LAKid53

The wand chooses the wizard, Mr. Potter
Premium Member
#2
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The important question is, are you willing to purchase shares at the current value, and in sufficient quantity to get any real benefit, beyond being able to say "I own Disney (stock)"? Price at close was 108.67, down .90 from opening.

Are you anticipating the price to rise significantly because of the merger? Are you trying to get in before the announced $10B buyback starts? Just know that if the feds (DOJ, SEC, etc.) start questioning the merger, that can affect the price, in the downward direction. And I'm assuming you're not buying to take a loss.

I cannot speak for any of the shareholders on this forum, but I bet a significant number of them purchased the stock before it hit $100 per share. Do brokers still only sell shares in round lots (group of 100 shares)?
 

matt9112

Well-Known Member
#3
The important question is, are you willing to purchase shares at the current value, and in sufficient quantity to get any real benefit, beyond being able to say "I own Disney (stock)"? Price at close was 108.67, down .90 from opening.

Are you anticipating the price to rise significantly because of the merger? Are you trying to get in before the announced $10B buyback starts? Just know that if the feds (DOJ, SEC, etc.) start questioning the merger, that can affect the price, in the downward direction. And I'm assuming you're not buying to take a loss.

I cannot speak for any of the shareholders on this forum, but I bet a significant number of them purchased the stock before it hit $100 per share. Do brokers still only sell shares in round lots (group of 100 shares)?
to your last point modern consumer oriented platforms like E trade allow you to buy stocks in tiny quanitys for flat fees. so you could in theory buy a single share. however all of your other points still stand valid.
 

larryz

Well-Known Member
#4
Current dividend is $.84 per share, and you get paid dividends twice a year (so $1.68). You get no other benefits from being a stockholder other than the right to attend the annual meeting, and a nicely decorated share certificate if you take possession from your broker (which is not recommended should you ever want to get rid of your shares in a hurry).
 

seascape

Well-Known Member
#5
If you are really interested in buying stock, you should consider FOXA shares. Each share will give you 0.2745 shares of Disney stock after the merger is complete and 1 share of new Fox. Based on the closing price Friday of 108.67 each FOXA share is worth 29.83 and the closing FOXA price of 35.24 means you would get a share of the new Fox for a price of 5.41. If the analysts are right and the new Fox will make 1.00 a share this is a great bargain and if you hate Fox who cares, you can sell it on closing and make money.
 

rael ramone

Well-Known Member
#6
Some people here are pro $DIS as an investment. Others are not.

The most important thing if you want to buy $DIS (or any investment) is to do your own due diligence. You are the one that has to sleep at night with the decision.

Realize a person can look at fundamentals and/or technicals and make the 'right' decision (to buy or not to buy) and lose money. Ultimately it's about what it is priced when you buy it vs. where the price goes - it's not a dividend play where one would own it just for income. (I'm watching CNBC now and 'Mr. Wonderful' Kevin O'Leary took a shot at Tesla saying after he bought his wife one 'it's just a car' and basically inferring that it has no business having such an inflated stock price).

(Another reason why I've heard that people want to buy $DIS is they want to 'own a piece of the magic'. Or, the ability to vote their annual proxy to show their favor or disfavor of the current Board of Directors).

You can buy from any discount broker. The larger ones (TD Ameritrade, Scottrade, Fidelity, etc) have trade prices ranging from $4.95 to $6.95 a trade. (And there's ones that charge even less). And you can buy as little as 1 share. And you can set what's called a 'limit order' - you determine at what specific price you want to buy your shares, why pay $108 and change if you think within a month it may provide a better entry point. And you can buy in 'increments'. (If you want to buy $2000 worth of shares, an option is to buy half, wait, then buy more later - perhaps at a lower price point - paying 2 instead of 1 commission could be made up - and then some - by the savings on getting more at a lower price. And if the price goes up on you, Jim Cramer says 'It's a nice problem to have'). And you can do limit sell orders too - if you think the price get's too rich you can bail, or you sell some shares and keep others - though know what your local taxing authority charges for capital gains & losses before proceeding.

* - my formula that I often use. Find a price target that you believe may be correct. (CNN Money is a good place to find it). Decide how much upside you want (like say 10% to 20% depending on how risky it is). Figure out what the commission adds percentage wise, and figure that into what you set as a limit order.

Right now $DIS according to CNN Money has a Median price target of $113.50. If you want to buy near $500 dollars worth of shares with Scottrade and you want 10% upside (and you believe that $113.50 is a good price - you may be more bullish or bearish):

.9-.028 = .872 (the .028 i figure out as 1.4 percent for buying, and a further 1.4 percent if/when you sell). Then multiply .872 by $113.50 which comes out to $98.97. So set a limit order for 5 shares at $98.97 (and I like to make sure the order expires before earnings, an earnings miss can give you an even better price).

And it's good to do 'homework' on the stock. Try to figure out what's 'baked into the cake' and what aspects of the business the market isn't seeing and you think it will eventually. If you think Iger signing on to stay on longer is a positive, it doesn't hurt to do a google search on the John Lasseter issue - 'MeToo', if enablers start answering for their share of this issue, could push for an early retirement (a Vanity Fair article specifically mentions Zenia Mucha as being in a meeting about the issue in 2010 - if she's forced out Bob loses arguably his most valuable employee - the one who has a HUGE influence on all the positive press TWDC gets). Or, if you think short term problems aren't priced in (but believe in the long term) you might want to wait for a lower price for those short term things to appear.

As far as buying FOXA to get in, there might be a conversion fee charged by the broker if you hold through the change. Consider what fees that may entail before getting in via that route.
 

LAKid53

The wand chooses the wizard, Mr. Potter
Premium Member
#7
Some people here are pro $DIS as an investment. Others are not.

The most important thing if you want to buy $DIS (or any investment) is to do your own due diligence. You are the one that has to sleep at night with the decision.

Realize a person can look at fundamentals and/or technicals and make the 'right' decision (to buy or not to buy) and lose money. Ultimately it's about what it is priced when you buy it vs. where the price goes - it's not a dividend play where one would own it just for income. (I'm watching CNBC now and 'Mr. Wonderful' Kevin O'Leary took a shot at Tesla saying after he bought his wife one 'it's just a car' and basically inferring that it has no business having such an inflated stock price).

(Another reason why I've heard that people want to buy $DIS is they want to 'own a piece of the magic'. Or, the ability to vote their annual proxy to show their favor or disfavor of the current Board of Directors).

You can buy from any discount broker. The larger ones (TD Ameritrade, Scottrade, Fidelity, etc) have trade prices ranging from $4.95 to $6.95 a trade. (And there's ones that charge even less). And you can buy as little as 1 share. And you can set what's called a 'limit order' - you determine at what specific price you want to buy your shares, why pay $108 and change if you think within a month it may provide a better entry point. And you can buy in 'increments'. (If you want to buy $2000 worth of shares, an option is to buy half, wait, then buy more later - perhaps at a lower price point - paying 2 instead of 1 commission could be made up - and then some - by the savings on getting more at a lower price. And if the price goes up on you, Jim Cramer says 'It's a nice problem to have'). And you can do limit sell orders too - if you think the price get's too rich you can bail, or you sell some shares and keep others - though know what your local taxing authority charges for capital gains & losses before proceeding.

* - my formula that I often use. Find a price target that you believe may be correct. (CNN Money is a good place to find it). Decide how much upside you want (like say 10% to 20% depending on how risky it is). Figure out what the commission adds percentage wise, and figure that into what you set as a limit order.

Right now $DIS according to CNN Money has a Median price target of $113.50. If you want to buy near $500 dollars worth of shares with Scottrade and you want 10% upside (and you believe that $113.50 is a good price - you may be more bullish or bearish):

.9-.028 = .872 (the .028 i figure out as 1.4 percent for buying, and a further 1.4 percent if/when you sell). Then multiply .872 by $113.50 which comes out to $98.97. So set a limit order for 5 shares at $98.97 (and I like to make sure the order expires before earnings, an earnings miss can give you an even better price).

And it's good to do 'homework' on the stock. Try to figure out what's 'baked into the cake' and what aspects of the business the market isn't seeing and you think it will eventually. If you think Iger signing on to stay on longer is a positive, it doesn't hurt to do a google search on the John Lasseter issue - 'MeToo', if enablers start answering for their share of this issue, could push for an early retirement (a Vanity Fair article specifically mentions Zenia Mucha as being in a meeting about the issue in 2010 - if she's forced out Bob loses arguably his most valuable employee - the one who has a HUGE influence on all the positive press TWDC gets). Or, if you think short term problems aren't priced in (but believe in the long term) you might want to wait for a lower price for those short term things to appear.

As far as buying FOXA to get in, there might be a conversion fee charged by the broker if you hold through the change. Consider what fees that may entail before getting in via that route.
Excellent advice.
 

Corey P

Well-Known Member
#8
I would not buy anything long term at this moment. Just in general.

As far as Disney it's usually not a good idea to buy into a merger. Things can happen and the stock may start bouncing around. Long term I question Disney's idea to buy most of FOX. Cord cutting and trimming looms and is picking up speed. Sports like football are in decline and Disney already has trouble with ESPN.

Disney is reminding me of GE, it is just getting bigger buying up a lot of other companies. Works for a while but in the end it never works out well. Too big leads to accountants running the place and that's never good. Accountants have no vision.
 

seascape

Well-Known Member
#9
I would not buy anything long term at this moment. Just in general.

As far as Disney it's usually not a good idea to buy into a merger. Things can happen and the stock may start bouncing around. Long term I question Disney's idea to buy most of FOX. Cord cutting and trimming looms and is picking up speed. Sports like football are in decline and Disney already has trouble with ESPN.

Disney is reminding me of GE, it is just getting bigger buying up a lot of other companies. Works for a while but in the end it never works out well. Too big leads to accountants running the place and that's never good. Accountants have no vision.
GE is a mess. They practically gave away NBC Universal to Comcast. What a mistake.

Disney on the otherhand is right and they needed Fox or another major player in movies and television that is aimed at older audiences. I think looking at Fox, Sony and Paramount, Fox was the best choice. Disney is getting a lots of shows and some great employees. They can go multiple ways and offer consumers a choice of an over the top package of channels or a Netflix type offer. Who knows some people may buy both. Besides Disney needs to grow of companies like Apple or Verizon may go after them.
 

Corey P

Well-Known Member
#10
GE is a mess. They practically gave away NBC Universal to Comcast. What a mistake.

Disney on the otherhand is right and they needed Fox or another major player in movies and television that is aimed at older audiences. I think looking at Fox, Sony and Paramount, Fox was the best choice. Disney is getting a lots of shows and some great employees. They can go multiple ways and offer consumers a choice of an over the top package of channels or a Netflix type offer. Who knows some people may buy both. Besides Disney needs to grow of companies like Apple or Verizon may go after them.
You're right that Apple may go after Disney or NetFlix. Look at what Apple did to the music industry, Itunes lowered the prices and the way people buy music. Media especially TV is in a moment of change and that's what would scare me a little about buying Disney. I think Apple would go after NetFlix since it is a pure play for content. They always had a problem with the Apple TV over content. Disney would give them a bunch of content but Apple may very well end up competing with it's self in that case.

If you sell covered calls every month plus a dividend you do fine but most people don't know how to do that.