Do you remember my comments from June 09 on Disney?
Actually, I had to search to find them myself;
Don't you just love the Wall Street gang? I love the way they promote or destroy stocks.
During the 2002 market debacle, Disney (DIS) stock bottomed out at $13.75/ share, and I was buying with both hands. That same day, an analyst came out and said, "But it could go to $7 or $8." I couldn't believe what I was hearing! How ludicrous!
Yesterday, with the stock around $30, CNBC was falling all over themselves touting the stock.
Anyway, you know how the games played.
Pumping stocks is nothing new, and the big hype over Disney's "Pirates of the Caribbean:Dead Man's Chest" was all over the airwaves. That's all well and good, but while consumers can afford to shell out $7.00 to see a movie, they may be reluctant to shell out $50/ day/person, not including hotel and travel expenses to visit the parks.
The economy is slowing, and this morning "CIBC World Markets downgraded its stock to sector underperformer from sector performer due to concerns over valuation and an expected slowdown in 2007."
Disney is clearly one of the cyclical stocks I would love to own once the economy bottoms out, but I don't think that will happen until 2007.
