Disney stock rises

[Lou Mongello]

Shares of Walt Disney Co. rallied 3.04 percent yesterday after Smith Barney raised its stock price target to $34 from $31 and increased its earnings estimates ahead of the media and entertainment company's investor conference and fiscal first-quarter report, ended on December 31, and to be reported January 31.

[wdw4us2]

Yes, but what will the long term bring?

[GrumpyDude]

Yes, but what will the long term bring?

i work in the financial services industry, and anyone who can accurately answer that, we have a seven figured salaried position open for you immediately!

besides, the stock is currently down and has been dropping the past few days. i think their estimate is aggressive, considering it has had a 52-week high of 28.94

from an investment standpoint, Disney is definitely a good growth stock, worth having in your portfolio with other investments. however, with any change in a company, wall street tends to get jumpy and nervous with any management change. they are still waiting to see how things are shaking out.

[wdw4us2]

Grumpydude,

The reason I made the long range comment is because, for the past few years, the moves the company has been making was to make the short term profits look good without regard to the long term future of the company.

[GrumpyDude]

Grumpydude,

The reason I made the long range comment is because, for the past few years, the moves the company has been making was to make the short term profits look good without regard to the long term future of the company.

every company does that, unfortunately Wall Street does not tolerate consecutive losses and underperformers. you'd be amazed at what some companies do to meet profit expectations.

several years ago, Rite Aid was consistently meeting expectations, no problem, then the CEO retired and there was a changing of the guard. well, turns out the prior CEO had ordered unsold inventory to be written off to the next quarter..............for about 4 years. here was a company that was believed to have over $80 million in revenue annually, that in actuality was losing roughly $15 million annually, but never accounted for it.

God bless Enron, if it weren't for that fiasco there would still be a lot of funky stuff going on.

Disney definitely is a stable company. there was a study done once, using Coca Cola as an example, which found that if Coca Cola were to close up there doors and stop making soft drinks, they could restart an entirely new business and be the same size within 5 years just on branding and name recognition alone. That's Disney, the branding alone is so strong they are not going anywhere.

but, keep in mind, Disney is a growth stock. not something you can buy in the morning and sell at night and make millions. Disney is a security that you buy and hold for years and you'll make more money then the interest in your savings account.