Where does all the money go?

MichWolv

Born Modest. Wore Off.
Premium Member
A bit simplistic. If you continue to siphon off money without a view to long term upkeep you could end up with a pile of rust instead of a car. And I am no accountant but I did have a car rust out on me.:lol:

Of course. I could get more detailed, but I was just trying illustrate one point.
 

MichWolv

Born Modest. Wore Off.
Premium Member
Yea Sox!!!

In simple english. I own a company. I decide that instead of my owning the company exclusively, I'm going to let everyone share the wealth. Usually this happens when a company needs an influx of cash to do something. So, I make the company public and everyone can own a piece of the company and thus a part in some decision making.

In very simple math, let us say that we decide the company is worth $100.00. And we decide to sell 100 shares for $1.00 each. You can now buy shares in the company. So you buy 1 share in the company and at the time you buy it, it is worth $1.00. That is called the initial public offering or IPO. Now that all or most of the shares have been sold, it becomes a matter of supply and demand. If the company starts doing well, people may decide to sell their shares and make a profit. So everyone wants my share that I bought for $1.00. The market says one share, instead of being worth $1, is now worth $2. I have now doubled my money. You might sell your share that you bought at $2.00, for $2.50. That is how you get a return on your investment. The price of a stock goes up according to how the company is doing, any news items, a fly flew through the window at the wrong time, supply and demand, etc.

Some companies also pay dividends to their stock holders. That is when they take some of the profit and divide it evenly to each share. So, as a stockholder, you get cash back.

This is a most basic explanation because I am not at all good at math or an investment genius. I belong to a stock club and own a few stocks, Disney included. Feel free to correct my info.

Whether or not the stocks go up or down a few cents in value each year is of little importance to me. I just need to know that in 20 years, I'll be able to sell my stocks at enough of a profit to retire on.

Simplistic and basic, but it works well enough.

Just to add to your final point, this shows that there are many different kinds of investors. I am investing for my retirement, which is hopefully 20 days off (if I win the Lotto) but is really 20 years off as well. But I manage my stocks more often than that. So, I care about short-term gains and losses, because I may rebalance my portfolio to take advantage of what I perceive (sometimes incorrectly) to be opportunities.
 

cpeterstx

Member
Don't forget. Disney did not make $2.8B for itself. It made it for the Shareholders. Disney is public and is beholden to Earnings Per Share targets. That 2.8B feeds that first. Any left over from that goes back into infrastructure.
 

MichWolv

Born Modest. Wore Off.
Premium Member
Don't forget. Disney did not make $2.8B for itself. It made it for the Shareholders. Disney is public and is beholden to Earnings Per Share targets. That 2.8B feeds that first. Any left over from that goes back into infrastructure.


As for EPS targets -- sure, to the extent that any company is beholden to market expectations. The stock price is based on the market's expectations of finanancial performance in the future. As the expectations change, so too does the stock price. Capital expenditures and changes in compensation of CM's or other expenses can raise or lower those expectations.

If Disney announces its intent to invest $100 million in a new ride, and investors believe that the new ride will generate more than it costs to build and run, to the extent that they believe the future prospects of the company are improved by this announcement, the stock price should go up. If, on the other hand, investors believe that this represents a poor use of money, the stock price will go down. Same with giving CM's a raise.
 

chinitopoop

Member
so then how much would it be to buy one share of disney stock now? and how would it work so that if say everyone on wdwmagic were to put their money together and buy the most disney stock, so that we can make the decisions and run the company our way, is that how it even works? would we be able to do that? ( i know we'd probably have to put together millions or billions) so lets pretend for the sake of the argument that we had the money to do it, is it even possible? is that how stocks work? I'm sorry but i'm absolutely clueless when it comes to the stock exchange and shareholders and all that
 

ChrisFL

Premium Member
Current trading price of Disney stock is 30.35

Outstanding shares: 1.90 Billion :eek:

That doesn't mean that we need $50 billion though, only enough to have more shares than any single entity...not sure where the controlling stake is percentage wise

In other words, IIRC Toyota bought out Subaru year or so ago, only buying about 10% of shares outstanding but it was more than any other shareholders had, so therefore they had higher stake than any other entity.
 

chinitopoop

Member
^ sooo what your telling me its possible? that would be an awesome idea if we were able to do it, who better to entrust the company to then the fans themselves, we'd actually take care of not just the parks, but the disney name itself, first order of business, giving some more adult or family oriented programming on the disney channel, more like the old vault disney stuff they used to play late at night, a sort of nick at nite for the disney channel, I'm so sick of this tween stuff they play, i mean from a business standpoint i realize its very lucrative, and hannah montana and all that bring in alot of money, but theres enough time to play all different kinds of programming, i mean it seems as if thats all they play now is stuff for tweens teens and kids, when i was growing up (late 80s/early 90s) we had the teen and kid stuff (dumbos circus/mmc) but disney always made a point to play some more adult oriented or more family oriented program late at night, why cant they do that now? i shouldnt be able to see suite life of zack and cody at 3 am, (what kid is up watching that at that time anyway?) I should be watching one of the old vault disney shows, or some shows that take you into the parks, ANYTHING but the tween programming they have constantly playing now, disney was always for the family, and they started messing all that up when they started catering to teens and kids only *which is why theyre dumbing down alot of the rides in the parks too (did the mexico ride really need donald on tv screens all over the place? and did tomorrowland really need to be kiddyfied? ex. ae to sge) I dont mind the kiddy stuff, but when your creating content to cater to just those under 16/17 then your excluding your older audience, the ones that grew up with disney and still want to be a part of it, thats the reason why so many adults (the ones who ask us with great confusion- WHY ARE YOU GOING TO DISNEYWORLD AGAIN?!) think its weird for us to continually keep going to disney because disney has turned into pretty much a "kiddy" company and that was never the intention walt had, he wanted family entertainment, stuff that mom and dad can see AND do with their kids and still be entertained as much as the kids were. this is something disney has been neglecting for a long time, granted some programming isnt that bad, i'd be lieng if i said i dont laugh at some of the jokes on thats so raven, but when you cater to that demographic and exclude any demographic older than that target audience, then your neglecting the exact principles the disney company was founded on and thats just not right......ok i'm done with my rant now lol I'm just mad because I turned to the disney channel and saw "the cheetah girls" playing, and i wish they were playing something i'm interested in.... sorry for writing so much guys especially so wayyy off topic,but i just felt like i needed to let that out lol
 

chinitopoop

Member
^ lol sorry like i said, i was on a rant didnt even realize, actually i think the whole thing is just one long run-on sentence lol ...i tend to overlook small details when i'm a lil fired up
 

clarkstallings

New Member
I know that every now and then, there are rumblings that Disney could one day sell off the parks. While it's always a possibility, an earlier poster said that that parks often prop up other parts of the company. This is exactly right. While the parks might not have the profit margins of a blockbuster film that can in a year make back ten times its cost, they are usually profitable, and rarely show a loss. In times of economic downturn and decreased tourism, hotel rooms can be shuttered, attractions' operating hours reduced, and staff furloughed. During booming times, staffing and capacity levels, can be raised fairly flexibly. This is what keeps the parks constantly profitable, whereas if you spend $150 million on a movie that's no good, that money's gone. It can't be adjusted as the marketplace changes. The bottom line is, the parks are not only an indelible part of what Disney is, they are also the most visited theme parks in the world and the most financially stable/consistently operating in the black division of the company. I doubt they'll ever be sold.
 

shoppingnut

Active Member
The parks are their "cash cow," without them many other parts of the company would have been eliminated a long time ago.

The problem with the Disney Stores and it's still the same problem today, is that they are run the same across the board with no thought and poor merchandise choices. First, you should be selling toys that are NOT available in Walmart at a lesser price. Second, the quality of your merchandise needs to be better. Third, bring back the adult merchandise and that does not mean just stupid men's t-shirts. Fourth, not all stores sell the same type of merchandise, one store that sells a ton of plush should get enough to sell and the other store that may not sell so much would get less, but what they do is send the same to every store. Also, they should have area managers that could move the merchandise from one store to another where it's needed, instead of having to send it back to some warehouse so it could be sent to the other store that is less than 2 miles down the road. Okay, my disney store rant is over.
 

grunter

Member
The Disney Store is not owned by Disney. It is owned by (I think) Children's Place.

Yes, but that's not an excuse. Disney would not have simply sold off the retail operation with no strings attached that would permit it to step in and protect its brand.

The Disney mall stores near me in Chicago are absolutely atrocious. Poorly lit, stock all strewn throughout the aisles, tweener vids in an endless videotape loop on a big-screen television monitor that badly needs replacement.

And as for the merchandise selections? The less "good" said, the better. I can't remember the last time I purchased anything there besides tickets for an upcoming Orlando trip. These stores need to be re-thought from the group up or just completely shuttered. They are a complete disgrace.
 

MichWolv

Born Modest. Wore Off.
Premium Member
Yes, but that's not an excuse. Disney would not have simply sold off the retail operation with no strings attached that would permit it to step in and protect its brand.

The Disney mall stores near me in Chicago are absolutely atrocious. Poorly lit, stock all strewn throughout the aisles, tweener vids in an endless videotape loop on a big-screen television monitor that badly needs replacement.

And as for the merchandise selections? The less "good" said, the better. I can't remember the last time I purchased anything there besides tickets for an upcoming Orlando trip. These stores need to be re-thought from the group up or just completely shuttered. They are a complete disgrace.

I agree with this post. If you choose to do business with somebody and let them use your name, you take a risk, and you had better be prepated to deal with that risk. I'm sure Disney knows that and did what they thought was best when they sold the Disney stores to Children's Place. But the stores (I'm in the Chicago area as well) really are a shadow of what they used to be. Pretty much all I buy at the stores now is presents for baby showers and the odd shirt for my 4 year old. Not much there for adults really.
 

tooltime

Member
2.8 billion sounds like a lot and it is. relative to WDW how much is it? a common measure is to look at the 2.8 billion as a percent of total gross sales, among other ratios. everything is relative.
 

shoppingnut

Active Member
The Disney Store is not owned by Disney. It is owned by (I think) Children's Place.

I'm aware it changed hands, however, the problems with the disney store are the same as when it was owned by Disney. The Children's Place did nothing to change/upgrade the stores in the way they were run. In fact, the Children's Place just continued the stupidity and revamped many of the stores to these sterile metal jungles. They even cut the size of many stores thinking that paying for less space was going to solve the problems. Well I can tell you that thinking has backfired on them, because the store in our mall which was always a store that the merchandise flew out of at full price and always made money, they cut down to a 1/3 of the size and now they need a bigger store so they are moving from their prime spot that is right in the center of the mall to downstairs stuck in amongst other stores because they can't get the space next to them anymore because other stores have opened there, duh, clearly didn't do your homework.
 

shoppingnut

Active Member
You get perks all the time. You get a dividend. You get a return on your investment. You have increased the value of your investment. That is the purpose for stocks. You want perks, become a cast member.

There was a time when you owned Disney stock they did give you discounts.
 

frazierle

Member
Disney $

I don't know where it goes, but I can show you how it went.:ROFLOL:I check the Disney.com daily for great deals, and not scared in the parks either.
:shrug:O.K. I guess I need intervention.
:sohappy:15 more days for a fix:sohappy:
 

Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.

Back
Top Bottom