Tag Archives: NYSE:DIS

The King Of Content Is Bigger And Better And This Is What I’m Doing

Walt Disney (NYSE:DIS) is a king of content but it needed to deliver that content to consumers the way they want to consume it. Since 2016, it has begun transforming for that need…

Should You Buy Disney Today?

The last year was a major investment year for Disney, namely Twenty-First Century Fox for $71 billion and capital expenditures (“CapEx”) that were up 9.2% year over year to $4.9 billion, and the CapEx is set to increase by a further 10% next year.

Moreover, Disney expects the DTC & International segment to generate ~$800 million in operating losses for fiscal Q1 2020 but to be accretive to EPS for fiscal 2021 and realize cost synergies of more than $2 billion from operating efficiencies by 2021.

Because Disney is fully valued today, we think there are better investment ideas out there, such as from our top dividend ideas list. Investors may just get a better entry point in the coming 12 months.

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1 Investing Mistake You Want To Avoid And 5 Lessons Learned

There are so many investing mistakes an investor can make. So, it’s helpful to see the mistakes others have made and learn a lesson or a few. 

One investing mistake I’ve made time and time again was booking profits on solid stocks. Some investors believe it’s not wrong as long as you make money. I agree there’s some truth in that but not the whole truth. (I’ll elaborate at the end of the article.)

There was a number of reasons why I booked profits, and I’ll illustrate with the examples below why I was wrong. 

yellow caution signs plastered on a page

The Stock Got Too Expensive?!

I sold out of Royal Bank of Canada (TSX:RY)(NYSE:RY) in August 2016. At the time, I thought the top Canadian bank was close to fully valued and I expected to be able to buy the stock back at a lower price.

From my selling point, the stock went on to deliver total returns of about 12%. What’s more? Fast forward three years, RY stock looks fairly valued to me right now trading at about 11.6 times earnings at about CAD$102 per share. 

Lesson Learned: In your lifetime of holding quality stocks, for sure there must be times in which they become undervalued, fairly valued, or overvalued. If your goal is to build a solid portfolio and use stocks, such as Royal Bank, as stable foundation stocks, you should aim to buy when they’re fairly to undervalued and hold for a long time. 

a colourful brain image made of text with emphasis on the words, feeling, habit, belief, memory, and meaning
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Is It Time to Buy Walt Disney?

The main content for this article first appeared in the Seeking Alpha Marketplace service DGI Across North America, in which other stable, long-term companies were discussed.

Conservative investors should give Walt Disney (NYSE:DIS)  another look, as the stock has been consolidating and earnings catching up.

Disney World in Orlando

Disney World in Orlando

Walt Disney: The Business

Disney is a conglomerate of content. It owns Pixar (acquired in 2006), Marvel (2009), Lucasfilm (2012). And of course, Disney profits from its franchises via its theme parks, movies, and merchandises.

Recent News

In December 2017, Disney announced that it’ll acquire certain key 21st Century Fox assets. Here’s the press release and here is some additional info from NBC News. This will be a positive for Disney, as Fox has popular entertainment properties, including X-Men, Avatar, and The Simpsons. The acquisition could also lead to cost savings of more than $2 billion.

The Fox acquisition is expected to close by June 2018. From the Disney press release:

Prior to the close of the transaction, it is anticipated that 21st Century Fox will seek to complete its planned acquisition of the 61% of Sky it doesn’t already own. Sky is one of Europe’s most successful pay television and creative enterprises with innovative and high-quality direct-to-consumer platforms, resonant brands and a strong and respected leadership team.

However, Comcast (NASDAQ:CMCSA) has joined in on the bid for Sky. Perhaps the increased uncertainty around Sky is why Disney dipped recently.

The dip is a great opportunity to nibble some Disney. The stock now yields 1.6%, which is my minimum yield target for the stock. My conservative estimate is that the company has the capacity to grow its dividend at a rate of 7-10% for the next few years. Read More