Navigating the internets this morning, I came across this item from Motley Fool that points to why Disney CEO Robert Iger has maybe been involved in the "informal" negotiations with the WGA the last few weeks:
If you think that a U.S. downturn brings bad news for this company, you should read a book and try again. It's a global brand that draws in more and more big-spending tourists as the dollar weakens, making up for the loss of reticent, penny-pinching American customers.
A bigger storm cloud on Disney's horizon is shaped like a drawn-out writers' strike. Without a steady stream of fresh feature movies, Disney's long-term prospects dry up. Take away Desperate Housewives and Lost, and there goes a good chunk of the near-term income ...
Disney, although only slightly smaller than News Corp., has been weaker in its stock price to earnings ratio.(13.7 p/e for Disney. 18.5 p/e for Fox News Corp.). Disney's stock price has lagged of late, even as its profit margins have increased. And the Fools speculate about what will trigger a Diz stock price rise:
* "The stock has to bottom out soon, trading at only 12 times trailing earnings" (at the time).
* "When the writers' strike ends, so does Disney's discount."
* "Solid company with diverse operations"
* "A weak dollar benefits this international superstar."
* And my personal favorite: "Steve Jobs is near it."
I think the company is seen as a little more nimble and flexible during the new Iger era. Whether that perception holds up, time will certainly let us know.
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