Sirwalterraleigh
Premium Member
I believe they are offering full refunds for trips booked through June 30th?
Might want to think about taking that and see what happens?
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What's Still On and What's Now Off
- Thread starter WDW Pro
- Start date
Might want to think about taking that and see what happens?
Stripes
Well-Known Member
By that logic anything the company did that reduced liquidity is a bad thing.
Classic damned if you do, damned if you don't scenario. Companies are told to stop hoarding cash, but when they distribute it to shareholders/owners they're told to stop doing that too. And if they decided that there was productive investments to be made in the company, now that a sudden, unexpected crisis comes along we get mad at them for reducing their liquidity.
disney4life2008
Well-Known Member
Well all these discussions are hypothetical. Unless they open everything back up to 100 percent, I am pretty sure Disney will likely do Disney gift card refunds.
Well....if worst comes to worst....they don't really need cast members from other countries. They can just use local cast members. Yah it would ruin the point of World Showcase but it would still bring in money.
Only two towers of The Legendary Years were barely built before they were abandoned. I think the issue was as simple as 9/11 causing tourism to drop to the point where Disney didn't need the extra rooms.
Josh Hendy
Well-Known Member
I think the big complaint about stock buybacks in the last few years is that many large companies borrowed money to do it. It's one of the biggest scams ever. But perfectly legal.
I don't know if Disney was guilty of this but I don't think they were one of the worst offenders.
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www.investopedia.com
I don't know if Disney was guilty of this but I don't think they were one of the worst offenders.
6 Bad Scenarios for Stock Buybacks
Buying back shares can be a sensible way for companies to use extra cash. But in many cases, it is just a ploy to boost earnings.
DreamfinderGuy
Well-Known Member
No. Just what a bunch of forum members theorized when they needed a reason to dismiss them.
Sirwalterraleigh
Premium Member
It’s artificially boosting price in a public market.
I think “damned if you do” is the general right perception on this one. There are few “positives” that can be defended.
Stripes
Well-Known Member
I'm not at all suggesting that buybacks are always positive. I'm not suggesting that at all.I think the big complaint about stock buybacks in the last few years is that many large companies borrowed money to do it. It's one of the biggest scams ever. But perfectly legal.
I don't know if Disney was guilty of this but I don't think they were one of the worst offenders.
6 Bad Scenarios for Stock Buybacks
Buying back shares can be a sensible way for companies to use extra cash. But in many cases, it is just a ploy to boost earnings.
I think it's odd that pundits and political figures get pushed out of shape regarding buybacks but don't utter a peep when it comes to dividends, which serve exactly the same purpose. Could it be that buybacks don't result in as much tax revenue as dividends, given that investors have the option of selling, often without much of a gain, while they don't have the option of refusing a dividend?
I do think some companies have gone overboard. I don't think Disney is one of them.
I don't understand how basic economics is "artificial" but okay.
I’m sorry but that’s nonsense.
Their last 10-Q showed them with something like $80 billion dollars in equity they could borrow against before they went chapter 11. Parks and Resorts have ANNUAL expenses of $17 billion (source: 10-K). And that’s when they’re running. Studio $8 billion/year, again, when it’s running.
They could sit quietly for a LONG time before we’re taking bankruptcy.
Lets not get sensationalist.
Stripes
Well-Known Member
Sorry!Oh god. I just had flashbacks to my Intro To Microeconomics course....
I actually have a deep passion for it. Different strokes for different folks and all.
rowrbazzle
Well-Known Member
The parks may not even be open and if they are no one knows what they'll be like. But TP if still out there making crowd predictions. Now, that's funny.
the.dreamfinder
Well-Known Member
It’s not unreasonable for a company of Disney’s size, and given the inherent vulnerability of the parks to things like pandemics/wars/recessions/energy crises, to have a rainy day fund.
It must be noted Iger, CFO Staggs and P&R head Rasulo seriously considered selling the parks because of the aforementioned issues in the late aughts/early teens. The parks are a very good business, but you need to operate them with the understanding, and the responsibility, that comes with those assets.
Rteetz
Well-Known Member
Still could utilize the new stables though which are nearing completion. I could see some changes to the Reflections property but DVC and deluxe resorts sell well and make the company money. Obviously will be a struggle for some after we get out of this to afford to go to WDW but I think many of those people weren’t staying deluxe at WDW as it was. We have seen that shift to an upper middle class focus over the last few years.
EricsBiscuit
Well-Known Member
is there any chance they reopen by Easter? Wishful thinking most likely.
Stripes
Well-Known Member
I agree. But as @Castastone pointed out, the company can absolutely weather this storm. They have the resources to do so. Talk about bankruptcy is sensationalist.
I absolutely respect WDW Pro, but I'd be lying if I said I wasn't skeptical of the original post.
Dad 2 M & M
Well-Known Member
You'll confuse some of the corporate bingo peeps here....
And what was being "supplied" on your graph? Or was it an arbitrary Suppy curve?