The Walt Disney Company (NYSE:DIS)

CAPS Rating: 5 out of 5

The mouse has grown into a media giant. Disney’s empire includes movies (including Pixar), television (featuring ABC), and theme parks.


Player Avatar FundamentalsMan (59.15) Submitted: 11/9/2012 7:58:17 PM : Outperform Start Price: $45.62 DIS Score: +54.60

This company is a mainstay of the American civilization and offers a well diversified revenue stream. It has a near monopoly on sports broadcasting with its ESPN brand, an un-replicable theme park chain that spans the globe, among the most sought after merchandising products and rights, and a strong pipeline of hit movies that will generate hundreds of millions if not over a billion in revenue in the years to come. It stands to benefit from increased park/cruise ship attendance and merchandise sales as the economy recovers. Finally, the recent acquisition of the Star Wars brand stands to act as a powerful catalyst as the two integrate and DIS runs Star Wars through it global marketing network.
As the recent price drop suggests, some may be concerned with the transition from traditional broadcasting to online streaming. While nothing is certain in this world, given the diverse operations of Disney and their world class brand and sports broadcasting monopoly, it is difficult to imagine that come what will, they would not only survive but thrive. They have a top of the line brand, combined with top of the line management, along with a healthy spirit of innovation. This trifecta should leave the company out performing the general market for years to come.

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