I know we have shareholders here, is it worth it?
-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
Buying Disney stock
- Thread starter THEMEPARKPIONEER
- Start date
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)?
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
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.
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).
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
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.
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.
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.
JamieCoops
Member
I'm quietly confident Apple will never be able to go after Disney, or vice versa.
the.dreamfinder
Well-Known Member
I suspect companies like Amazon, Google and Facebook will be broken up by governments within the next ten years to preserve market competition. Apple, organizationally, won’t be targeted by regulators in the same way because they don’t control as many assets across multiple industries or over dominance in a single market, like messaging or retail. For Apple to buy Disney or Netflix would be a shiny distraction for a company in a highly competitive, rapidly changing core business. Then add in the possibility the deal could be voted down by multiple regulatory bodies because of consolidation with possibility of a break up down the road.
IMO, Disney should be looking to shed assets to better serve the core company instead of adding largesse with the Fox deal.
I agree Apple will not go after Disney but they may go after another Studio like Lionsgate.
the.dreamfinder
Well-Known Member
There is another way to own Disney stock that may be a better choice for those looking to maintain a diverse portfolio and be realitively affordable, mutual and index funds. Disney’s largest shareholders are mostly institutional investors like BlackRock or Vanguard. Folks should do their own homework here, but you, and a financial advisor, can look through funds with sizable holdings in DIS. That way you do own some stock, but it’s balanced out by other investments within the fund. You may even be able to voice your opinion on voting issues to the fund’s managers; a crucial component of the Save Disney campaign.
*This post should in no way be misconstrued as financial advice. Rather, it’s an attempt to point out another avenue in which one can possibly own shares in TWDC.
*This post should in no way be misconstrued as financial advice. Rather, it’s an attempt to point out another avenue in which one can possibly own shares in TWDC.
Good advise. I also believe in a well diversified portfolio. But it is okay to have a small amount in your favorite companies. Never put all your eggs in one basket, especially in the company you work for.
ThemeParkJunkee
Well-Known Member
I bought DIS in 2012 for $49.69 per share, I purchased about 70 shares. I had an inkling it was peaking at the $120+ range and sold all but 5 shares at $121 and change. It WAS a great investment at the time. I own the 5 shares now to get the annual report, tell my grandchildren I own part of Disney (financial education) and to annually vote against Bob Iger. I would not buy it now. My dividends for other stocks are better. I am more concerned about income right now. I am semi-retired. I am a "buy and hold" investor. I base my initial purchase on fundamentals. (EPA, Cash on hand, Debt Service ratio, EBITA, the market the stock is in and finally, my gut feelings). There is no magic answer. Will you "buy and hold"? Do you need income potential? What is your upside expectation? What are the risk factors of the market segment in which the security resides? DIS is more a media company than a theme park company and "plug pulling" with the ESPN and ABC issues, I wasn't comfortable.
Minthorne
Well-Known Member
My sister gave me 1 share with a framed share certificate. When she gave it to me in Dec 2012 it was worth about $50. Now it is worth more than twice that!
https://www.giveashare.com/stock.asp?buy=disney-stock
I own a Disney Share!
tonymu
Premium Member
Same here. My brother gave me a share he bought on the giveashare website for Christmas a long time ago. I get the .84 dividend check and have an awesome, colorful framed stock certificate. Back in the days before being able to deposit checks by phone I used to just save the checks thinking they had more value to me saving them than depositing the few cents at the bank. Since I did not deposit them, my stock was eventually marked as abandoned. I eventually found my name listed in the newspaper in a section they publish every year from the State of Texas about abandoned property. I had to then file a bunch of paperwork to reclaim my precious stock. I now deposit my dividend by phone and vote my one share each year. I don't think I will ever be able to retire from my one share, but it is cool to have the framed certificate and own my tiny, tiny, tiny portion of Disney!