Trade Initiation: Disney (DIS)
On Thursday, I purchased approximately one third of a full position in Walt Disney Corporation (DIS), otherwise known as Disney. This expands my portfolio into the entertainment space, given I currently hold shares of Cedar Fair (FUN). The purpose of this purchase is to begin a transition away from Cedar Fair. The company and the stock has not been performing up to expectations as of late. Despite the strong dividend of over 5%, the company lost all of the capital gains I had in it and then some. This was poor management on my part. Regardless of what I did or didn't do right with Cedar Fair, I still have faith in the Entertainment industry. However, I felt it would be more appropriate to diversify myself outside of just amusement parks. I feel the timing of this switch is ideal too. Besides the theme parks which Disney has and are doing well, they have TV via ABC channels and ESPN, which is starting to turn itself around with it's ESPN+ app and get itself repositioned as a sports leader. The company also has a number of new movies coming out between Star Wars and the Marvel Universe in which I expect them to heavily capitalize on via merchandising and brand recognition. Add on top of this the fact that they just closed the FOX deal in which they can expand their content even further and the streaming services for their content which they'll soon be launching, as they step away from the Netflix arena. All of this seems to align to a lot of growth opportunity in the next 12-18 months.
The dividend is less than 2%, which takes away some of the yield protection I had in my portfolio, however, if the economy does stay strong (if is dependent upon how much more the Fed raises rates and how the economy handles it), yield is more likely to be a detriment, given that many companies with higher yields are released for safer treasury notes instead during these times. It's the growth I'm after here. If I feel a need for more yield protection, I may just have to get that somewhere else.
At this point, I rank the stock a 1, however I am hopeful the current market conditions will continue to give me some more buying opportunities below my cost basis. I also need appropriate conditions to release my other shares with minimal losses. That will be the goals I have in place for going into the end of the year.
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
The dividend is less than 2%, which takes away some of the yield protection I had in my portfolio, however, if the economy does stay strong (if is dependent upon how much more the Fed raises rates and how the economy handles it), yield is more likely to be a detriment, given that many companies with higher yields are released for safer treasury notes instead during these times. It's the growth I'm after here. If I feel a need for more yield protection, I may just have to get that somewhere else.
At this point, I rank the stock a 1, however I am hopeful the current market conditions will continue to give me some more buying opportunities below my cost basis. I also need appropriate conditions to release my other shares with minimal losses. That will be the goals I have in place for going into the end of the year.
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
Nothing on this site should be taken as advice, research, or an invitation to buy or sell any securities. All views expressed are solely of my own and I am not a professional money manager. Please consult with your financial adviser before taking any action in your own portfolio.
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