Jim Cramer Likes Disney -- Says Cheaper Vacation

[TestSherpa]

I happened to stumble on this and thought it was interesting. Jim Cramer on thestreet<dot>com saying that auto travel to Disney World is up and a DW vacation provides more value than other locations.

Despite being beaten up by the market and analysts over fears of rising airfares, Disney stock has positives if one delves deep into its business, he said.

While Cramer agreed that airfares are rising, he noted a recent study which stated that auto traffic to Disney World has been steadily increasing, not decreasing. "The analysts are only counting airplanes," he said.

In addition, room rates around Disney World have been falling, with 75% of rooms now being classified as moderate to value in price. Furthermore, Cramer said the weak U.S. dollar makes travelling to Disney World cheaper for the rest of the world.
Cramer also likes Disney's other businesses such as ESPN, a premium cable property that he said is doing exceptionally well. He called analysts "way behind the curve" in their estimates for the stock.

[nospinguy]

I generally agree with that...anyone that has been to WDW recently can quickly learn what a weak dollar means for the international economy! Last time I went Americans were definitely the minority...

[ChrisX]

To his credit, Jim Cramer has been high on Disney for quite some time now and is a fan of Bob Iger.

After the market closes on Wednesday, Disney will be reporting its earnings which includes a confrence call which many people are looking forward to. There are certain analysts who have been just waiting for the shoe to drop on Disney for months, but despite being in a economic downturn, the parks have kept trudging right along for the last two years without really losing steam.

Either way there should be a lot of good info Wednesday night and Thursday, so keep you eyes and mouse ears open.

[ChrisX]

Hey TestSherpa, thought you might like this little clip that Cramer just put up

Yahoo!

I hope the link works, its about a three minute clip that Jim did discussing the earnings report and the company. He says alot of things about the company which make sense.