rael ramone
Well-Known Member
Unfortuately yes you are correct. The 'cash, credit and borrowing power' that somehow is more than enough for them to load up on their own overpriced shares, but somehow isn't enough for them to do more than token improvements (in many cases outright de-furbs like the Poly Lobby) or even to maintain the property to MCO Airport standards, nevermind Walt standards. But it's certainly too high for the insiders to 'put their money where their mouth is' and buy shares on the open market. I just took a look at the Thomson Reuters report on $DIS. Last 5 2nd quarters (fiscal 2nd quarter 5 years in a row) - average insider share sells total rounds to $13 million. Insider buys average during the same period. $0. Not rounded. $0.
The fine reports by @PhotoDave219 and others about what Jimmy Fallon's employer is doing up on I-4 - with an IP that already deeply resonated with the public in each of it's two different media forms (Books & Film) is about to add to the park another richly detailed immersive land based on it that further strengthens the franchise it's based on. It will give it life for years to come. It has the potential to turn UNI into the 'right of passage' vacation destination.
And what is the Mouse doing in the swamps? Avatar for one. A one film (so far) 'franchise' that made a ton of coin because of the 'wow' visuals but without characters/story/'message' that in any way, shape or form resonates with the public. But the film has 'wow' visuals. 'Wow' costs money. And that 'wow' is going to have to make up for the fact the content doesn't resonate - or they'll end up having to shoehorn another franchise in that area - maybe they'll make it Roger Deans Yesland! Soaring Thru Topographic Oceans! South Side of the Sandwich! The Revealing Science of Gifts! (actually I think that sounds pretty good myself).
(Costa Rica goal. should make up for that outright foul Italy commited in the penalty area that wasn't called).
2nd - Frozen. Already a bigger franchise than Avatar (would any of those blue aliens have a 4 hour wait for a meet & greet?). But they need something that is going to 'enhance' this franchise to give it an extended life. I don't think an overlay will do the trick.
And then theres Star Wars. Arguably a smaller franchise to the public than Potter *before* the UNI additions. Equaling Hogsmeade/Diagon Alley may not even be enough. It's gonna have to be multiple attractions that serve all age groups. It's gonna have to ooze detail & quality. It may have to do some of the heavy lifting for the franchise as a whole if JJ does to Star Wars what he did to Trek ('maybe if I'll put enough lens flares in it they won't notice that I'm descecrating these iconic franchise defining characters'). And it's gonna have to be something that they are willing to maintain. And perhaps more importantly - it needs to be built in a time frame that pays no attention to 'making the current fiscal quarter look good'.
But since the Mouse is primarily in the hotel/timeshare business in the swamps - what are they going to do to make these resorts do their own heavy lifting? 'Stay in room days' should be for more than healing yourself for doing the parks commando. A $500 room should offer much more to do and enjoy within it's own grounds.
And theres that old 'vacation kingdom' thing.
All this stuff, to do right and before it's too late, will cost lots of $$$ in a time frame that they aren't used to be spending in.
Even then, if they do this while neglecting the foundation (maintenance, cleanliness, and the CM's) it's just like adding a fancy third floor to a house when the first floor has termites. (And, I don't know, but if they pay First World wages to the cast, they'll not only attract better CM's and get better work out of them, but as the largest employer in the area it would force the other businesses to raise their wages to compete - then you have a local population with more money to spend on your product).
And what happens to what once was 47 square miles is no longer the family right of passage? Live off of ESPN carriage fees? (until the worldwide leader ceases to be the worldwide leader in desirable sports content and/or a la carte pricing happens).
They way to reduce the tourist dollar from heading up I-4 is to increase the value of every nook & cranny in the resort. Make the parks much more immersive. Make the resorts much more immersive. If the guest feels that there is so much they need to experience on property from the parks to the auxiliary diversions on property to their own resort - maybe, just maybe - instead of spending that money to visit the wizard they'll use it to buy that knickknack in Liberty Square that's there primarily to add to the theme and enjoyment of that area.
The combination of cash on hand, historically cheap debt, and those overpriced shares that could potentially be used to fund this leaves no excuse for this not to happen.
Then again, this might reduce the shares 5 basis points in the short term, reducing Igers return when he 'hot potatoes' his shares the microsecond they become vested. ok, nevermind. Mouse Arrest Bands, Cockerell Fries, and more of the Magical Motorcoach it is.
(Costa Rica just eliminated jolly ol England before they even played them... off to the WC thread)
