Kobia2 » 21 Jul 2023, 8:29 am » wrote: ↑
We'll see indeed, because Disney has been on a colossal cash hemorrhaging & stock sinking losing streak.....
This isn't Disney's first run with their theme park attraction based Haunted Mansion Movie --- they released one in the early 2000's starring Eddie Murphy which flopped... Also, the timing of the release is a bit peculiar... You'd think they'd debut it in October for Halloween.
They need the money now. And, even if it is mildly successful, not a flop, they see it as helping their streaming subscriptions, which really needs help.
But, let's be clear about where Disney really is financially. DIS earns $2.26/share, and shares are priced right now at $86.46. It's P/E is 38.23 which is high (expensive stock) considering that its been on a downward loosing streak for over 2 years. People wanted to watch Disney flicks during the lockdown, but seem to have lost interest. And, with Netflix taking a dump, that's not a good sign for Disney's streaming service. While the analysts predict a price of between $85 and $150 for DIS in the next 12 months, I think they are wrong. Disney still isn't getting it right to its mainstream customers, and no more dividends for the near future. They just don't have the right leadership in place to recapture what it lost. And, the writer's strike isn't helping them at all.
Why would ANYONE want to hold Disney stock at a P/E of over 38 with no dividends and nothing in the pipeline? If DIS ever hits a P/E of 16 or less, I might buy some. In fact, in writing this, I have laid out a good program to short DIS - which I may consider doing.