"John Carter" might not be heading for the success of Disney's (DIS) animated films, but Jim Cramer thinks the mega-budget film won't damage the company. He does think the company needs to focus on what it does best: theme parks, ESPN and cartoons.
"Disney decided to cut back the number of movies it made but was going to put a lot behind the number of movies that it did make. And so this was really not what they needed to happen," Cramer said.
The "John Carter" film is based on a popular book series by Edgar Rice Burroughs yet the movie has garnered negative press. Cramer said he was surprised by more than $250 million dollar price tag to make the movie.
"I think, maybe the lesson there is don't make a movie that cost more than $100 million and if you can't than don't do it," Cramer said.As a whole, he said he doesn't like the hit or miss movie industry. But film is a fundamental part of Disney's business and he thinks he should focus more on cartoons. "They do the best animated. So what would happen if they just decided to go animated. You don't have a lot of animated bombs," Cramer said. Cramer said the stock would be a buy if the film had hit share prices. But the stock has remained stable, as theme parks have continued to perform well and the ESPN franchise continues to be well-loved. He says it appears that it will be smooth sailing for Disney.
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