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Why I took a chance on Disney |
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| Sep 02, 2008 03:30 PM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Time Warner (TWX), Walt Disney (DIS), Viacom (VIA), Stocks to Buy  Ladies and gentleman, this fund investor grew tired of watching his family's portfolio get pummeled by double-digit percentage points and decided to become a stockholder. So, I snapped up a tiny position in Walt Disney Co. (NYSE: DIS).Before now, I avoided individual equities for several reasons, including that I was prohibited from owning them because of my previous job. I also felt uncomfortable owning stocks since I write about so many of them. My financial planner also discouraged us from taking positions in individual stocks, saying funds are a better way to go. But after taking a quick look at my last brokerage statement which showed my portfolio is down about 10 percent, I soon got over my unease. I realize that it's foolish to chase short-term gains but I thought something had to be done. One of the funds we owned seemed to be heavily weighted with gambling and leisure stocks, a sector that I don't expect to come back for a while. We got rid of it and added an ETF that covers the tech sector which should be among the first to rebound once the economy starts to improve. Still, I wondered if I could do better. Disney caught my eye a year ago when I labeled it a "slacker stock" because it was such an underachiever.The shares have barely budged this year, moving down about 3%, which in the current market is not bad. Moreover, Disney is outperforming peers such as Viacom Inc. (NYSE: VIA) and Time Warner Inc. (NYSE: TWX), both of which are down double digits. The stock is trading at forward multiple of 13, which appears cheap to me considering it's lower than Time Warner and unlike Viacom pays a dividend. Continue reading Why I took a chance on Disney Read | Permalink | Email this | Comments<map name="google_ad_map_145-1301982"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1301982?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map> 
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