Disney World’s Least Popular Park Is Showing Signs of Life

30 Nov 2015 | Author: | No comments yet »

3 Stocks to Track: Walt Disney Co (DIS), Nike Inc (NKE), Petroleo Brasileiro SA Petrobras (ADR) (PBR.A).

Three months after Walt Disney boss Bob Iger warned that ESPN had lost “some” subscribers recently, we now know how much damage on-demand streaming has done to Disney’s powerhouse sports network. Economists in a Bloomberg survey unanimously predict the ECB will add to stimulus, highlighting a policy divergence with the Federal Reserve as the odds of a U.S. interest-rate increase in December remain above 70 percent.Nov. 30 — ESPN has suffered a loss of seven million subscribers over the last two years, cutting into the bottom line of parent-company Walt Disney Company.SouFun Holdings Ltd. (SFUN) of the Technology sector is down -1.86% (change from open 1.93%) this morning trading at a volume of 1,890,531 shares and price of $6.61.Barclays’ Kannan Venkateshwar believes that the emergence of new variables like cord cutting have thrown up new accounting and financial challenges for US media companies.

Walt Disney Co (NYSE:DIS) announced the launch of its ‘Share the Magic’ holiday campaign, which includes 11 full days of Magical Friday (aka Black Friday) deals as well as in-store events and special ‘experiences like never before. “Every year we look for ways to help our Guests share the magic with their friends and families, and this holiday, it’s our turn to do the same,’ said Elissa Margolis, senior vice president of Disney Store North America. “We’ve gone beyond the traditional to create experiences that are sure to warm hearts and make this the most magical season yet.” To celebrate the magic of the season, unsuspecting shoppers in a Southern California Disney Store were recently treated to a special surprise in which every family in the store received a $100 Disney gift card for themselves, and another to share the magic with someone they love this holiday season Walt Disney Co (NYSE:DIS) opened trading today as $115.13 and is trading in the range of 113.70-116.50 today. The number of ESPN subscribers is now back where it was 10 years ago, after the network shed 3 million customers in its fiscal year ended Oct. 3, according to a released after markets closed Wednesday. The opposing central-bank leanings have a gauge of the dollar on track for its best month since July and have weighed on assets from emerging shares to gold. “This is a fairly big week between the ECB Thursday and the jobs number on Friday,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone. “These are going to be a pivotal two weeks to set us up through the end of the year.” In addition to the ECB’s policy decision Thursday, the International Monetary Fund will decide this week whether to grant China’s yuan status as a reserve currency, OPEC members will meet to discuss oil production, Fed Chair Janet Yellen will appear before Congress, and then on Friday, the monthly U.S. payrolls report is due.

Since the risks related to the accounting of these trends are yet to be recognized, investors should focus on evaluating companies on the basis of their free cash flows, Venkateshwar said. To put it in perspective: With ESPN now at 92 million subscribers, there are more people watching other Disney networks, including the History Channel, Lifetime and A&E, than the once-dominant sports net, which has been the mainstay of Disney’s cable offerings for years.

SouFun Holdings Ltd. (SFUN)’s monthly performance stand at – 3.03% with a profit margin of 22.20% and has an analyst rating of 2 The Walt Disney Company (DIS) of the Services sector (Entertainment – Diversified) is down -0.95% already this morning, a change from open of -1.14%. Compared to other peers in the Entertainment – Diversified sector, Walt Disney hasn’t performed in terms of quarterly revenue growth year over year at 0.09 vs. the industry average of 0.13. In 2013, ESPN was approaching 100 million subscribers. joins it rivals in struggling against the trend toward media streaming that has battered media stocks for the past year. Understanding the financial and accounting implications of these issues is important since media companies have a significant portion of their programming costs off balance sheet, especially because a large proportion of these costs are locked in for multiple years, the analyst added.

Noting that cord cutting/shaving could have implications for cost recognition trends in the media industry, Venkateshwar mentioned that many companies amortize programming costs not just as a proportion of their advertising revenues but also affiliate fees. Now if the cord cutting/shaving trends accelerate, the pace at which costs for these long-term contracts are recognized may need to be accelerated too.

Nike Inc (NYSE:NKE) on November 19, 2015 reported that its Board of Directors approved a new four-year, $12 billion program to repurchase shares of NIKE’s Class B Common Stock. The most recent analyst actions consisted of Credit Agricole initiating the stock on September 2nd and Bernstein initiating coverage with a downgrade rating back in August. And despite its troubles with ESPN, the Burbank, California-based entertainment behemoth is expected to draw $200 million on the opening weekend for the widely anticipated “Star Wars: Episode VII – The Force Awakens.” Opening- weekend revenue from the latest installment in the sci-fi film franchise, which opens Dec. 18, will nearly match the $216 million Disney has lost from ESPN ditchers over a 12-month period. This share repurchase plan does not obligate the Company to acquire any particular amount of common stock, and it may be suspended at any time at the Company’s discretion.

These money managers shepherd the majority of all hedge funds’ total capital, and by observing their unrivaled picks, Insider Monkey has uncovered a number of investment strategies that have historically surpassed the S&P 500 index. Due to differences in accounting treatments and business mixes of the various companies, Walt Disney appears to be more exposed to this risk over the longer term. Analysts say the takeaway is clear: Investors care about subscriber attrition at ESPN, part of a cable unit that provided about 45 percent of Disney’s operating income in fiscal 2015. But they care more, for now, about Walt Disney Studios, which will restart the “Star Wars” movie series on Dec. 18 after a decade of theatrical dormancy. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

The Media Networks segment operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is involved in the television production and television distribution operations. Its Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of crude oil and oil products produced at natural gas processing plants in domestic and foreign markets. The second largest stake is held by Adage Capital Management, managed by Phill Gross and Robert Atchinson, which holds a $199 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Tim Nollen of Macquarie Securities has estimated that mountains of related merchandise could generate an additional $5 billion in revenue over the next year.

Some other members of the smart money that are bullish contain Tom Gayner’s Markel Gayner Asset Management, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital. The exuberant expectations have, in effect, shifted the conversation about Disney in an unusual way, analysts say, toward a movie’s potential to deliver otherworldly riches and away from the challenges buffeting the broader cable and broadcast television businesses, including the cracks in ESPN’s once-impregnable armor. “It’s amazing how Disney (or market psychology) has been able to divert the focus” away from a decelerating ESPN, Todd Juenger, an analyst at Sanford C. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings, and live stage plays.

At the top of the heap, Clifford Fox’s Columbus Circle Investors sold off the biggest stake of all the hedgies tracked by Insider Monkey, comprising an estimated $171 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund cut about $88.6 million worth. The Consumer Products segment licenses trade names, characters, and visual and literary properties to retailers, show promoters, and publishers; publishes entertainment and educational books, magazines, comic books; and operates English language learning centers. Stratospheric ticket sales for “Avengers: Age of Ultron,” produced by Marvel, and Pixar’s “Inside Out” were the primary drivers; the studio also receives a portion of profits from movie-themed merchandise. These stocks are Anheuser-Busch InBev NV (ADR) (NYSE:BUD), Bank of America Corp (NYSE:BAC), Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT), and Oracle Corporation (NYSE:ORCL).

The company is counting on “Star Wars” to buoy its stock price while it also tries to tamp down expectations for the film with investors and the news media. As you can see, these stocks had an average of 57 hedge funds with bullish positions and the average amount invested in these stocks was $4.80 billion. The expectations game is one reason that relying on content for growth is tricky: Unlike cable subscriber fees, which rise at contractually stipulated percentages and times, a movie’s value can only be guessed at in advance. “In December, it’s rare to see a big debut,” Alan F.

Disney also noted that only 18 percent of students will be out of school on the film’s opening day and emphasized that the film’s entire run should be the measuring stick. Still, many box-office analysts expect “The Force Awakens,” which has already generated more than $50 million in advance ticket sales, to deliver the biggest opening weekend in Hollywood history — never mind December.

The record-holder is Universal’s “Jurassic World,” which took in $208.8 million over its first three days in June, according to Rentrak, which compiles box-office data. Ask Disney executives that question and prepare for a response akin to Darth Vader’s famous line from the first “Star Wars” movie: “I find your lack of faith disturbing.” But on the last earnings call, Thomas O.

Disney has a parade of probable box-office behemoths in the pipeline for next year, including Marvel’s “Captain America: Civil War,” Pixar’s “Finding Dory,” the sequel “Alice Through the Looking Glass” and “Rogue One: A Star Wars Story.” Movies, in other words, could continue to carry the day at the world’s largest entertainment company.

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