Stock Market Woes

[ULPO46]

As many of you have heard, the stock market tumbled below 1,000 points at it's opening. Slowly but surely it's been stabilizing towards the -200 points range. How ever, the reason why I have placed this as a new thread is because it was requested by some on the DHS news. Although the money is in place, a long term recession could place the monetary funds on hold for the project. Not for long but just until the board feels it's safe to spend over 3 billion on it's parks and resorts. The phones here in Burbank have been going off the hook ever since news broke this morning about the market. Although many are worried, I feel pretty optimistic that life will go on and the project will move as planned. How ever, if the market tumbles through the week, expect the board to take note.

 

[sshindel]

I'd hope the board is smart enough to project farther than a week in advance before axing long-term plans. If future projection show a slowdown is inevitable, then I'd hope they consider all factors in before making a decision on construction. A new "land" or two should theoretically last much, much longer than the ups and downs of the market.

 

[ULPO46]

I'd hope the board is smart enough to project farther than a week in advance before axing long-term plans. If future projection show a slowdown is inevitable, then I'd hope they consider all factors in before making a decision on construction. A new "land" or two should theoretically last much, much longer than the ups and downs of the market.

Yes in terms of economic funds, no worries. But say if our contractors loose so much money that they go bankrupt, then we have a delay that will cost more than the project is worth. The board doesn't like that scenario.

 

[ford91exploder]

I'd hope the board is smart enough to project farther than a week in advance before axing long-term plans. If future projection show a slowdown is inevitable, then I'd hope they consider all factors in before making a decision on construction. A new "land" or two should theoretically last much, much longer than the ups and downs of the market.

I'd agree but this team is all about managing the stock price because it sets compensation for the executive team. A classical definition of perverse incentive, I'd rather see compensation tied to 5 year timelines.

 

[sshindel]

Yes in terms of economic funds, no worries. But say if our contractors loose so much money that they go bankrupt, then we have a delay that will cost more than the project is worth. The board doesn't like that scenario.

True, but there are likely other contractors that would be willing to take up the work, likely at a reduced cost based on their financial situations.
I'm not suggesting that there is no chance that timelines are not impacted in the event of a long-term slowdown. Just that I'm hopeful that the people at a company as large as Disney make decisions based on all of the available information and projections. If it becomes financially the correct move to postpone the construction because to do otherwise would endanger the company, then I hope (as a stockholder) that they would do so.

 

[Shaman]

I think the overall concepts of a Star Wars Land and Toy Story Land are safe. The art was presented at D23, but specifics were few. Leaves them room to work with. I could definitely see new attraction count take a hit in both lands. All the stuff that wasn't announced would probably be in greater jeopardy.

DHS needs help, I doubt Disney scraps its plans if things get bad. If they do, I still expect them to build SWL and TSL.

After all, Disney moved forward with Carsland regardless of the economy conditions.

 

[Goofyernmost]

Yes in terms of economic funds, no worries. But say if our contractors loose so much money that they go bankrupt, then we have a delay that will cost more than the project is worth. The board doesn't like that scenario.

Wouldn't going ahead with plans prevent contractors from going bankrupt? I'm sure with the investments that the Disney Company makes that this downturn would boggle our regular people minds, but, they aren't about to go broke by spending, in fact, can be beneficial in making the market solid again. This is the first real downturn in a number of years and the machines and the big boys with yachts to pay for are in a bit of a panic. This too shall pass.

 

[Horizons '83]

Nothing will change... Disney will change their Q3/Q4 forecasts as will every other traded company, unless there is another complete collapse like 2008. This just seems like a reality check that the market was overvalued.

 

[MerlinTheGoat]

I'm aware we were told that the DHS funds were completely safe, but in the event of another major financial collapse I would have a hard time remaining optimistic of just how safe it could really be. I'm not claiming either way that this will be a major collapse, but I cannot imagine stockholders and the board taking spending over 3 billion lightly during such a crisis. Projects further along in development than this have been canceled before with far better economic conditions involved. It has to be within the realm of possibility that this project could either be canned or at least suffer severe budget cuts if such events were to occur...

 

[DDLand]

Disney is fine, unless this kicks off a period of decreased leisure and entertainment spending, which is doubtful. The fundamentals are strong.

DHS should be more than safe. Do you think this market that's hungry for SW would be pleased if the lands future was put into jeopardy?

 

[Jahona]

Disney stock may have faltered this month with their 3rd quarter earnings announcement and with the general drop in the stock market, but I read an article this morning suggesting that Disney stock might be ripe to buy for investment. If one analyst sees it going back up I'm sure others do as well.

 

[MonorailLover]

I think it's funny that people actually worry about DHS not being safe. The Directors know that they're charging us for less than a 3rd of a day park now, they know that DHS needs a overhaul. They've built stuff before during market woes, nothing will change. The decrease in value for Disney stock only reiterates to other investors to buy low at this point.

 

[EpcotCenter82]

Disney stock is actually up 0.42/share as of mid-day trading today.

 

[Frankie The Beer]

Even in this over dramatic Dow plunge, DIS is going up in price.

 

[MonorailLover]

Disney stock is actually up 0.42/share as of mid-day trading today.

Even in this over dramatic Dow plunge, DIS is going up in price.

This is why I think it's silly to worry. It could easily break 100 today. It's at 99.75 a share right now.

 

[Horizons '83]

Yep, Dow is only down 132 as of this post

 

[flyerjab]

Honestly, if there is a major financial collapse, the last thing I am going to be worried about is park expansions. Many more things close to home to be concerned with as opposed to whether or not I have to wait 5 or 7 years to pilot the Falcon into wild space.

 

[Frankie The Beer]

Yep, Dow is only down 132 as of this post

The Dow is tied to the Chinese stock market, which is legitimately going to crash. Smarter investors got out of the Chinese market long, long ago, now the rest are getting out. America will feel the loss for sure and the Fed will weaken, but if I were a buying man, I would jump on DIS if its under $100.

 

[Darth Sidious]

Huge directional changes are more common due to electronic high frequency trading. Algorithms will auto sell out of positions during certain conditions. This is also a market correction. I wouldn't be too worried.

 

[Matt_Black]