This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Jim Cramer: When You Wish Upon a CEO

Stocks in this article: DIS

Editor's Note: This article was originally published on Real Money on Feb. 6. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- Ya gotta have faith. But I don't believe in faith-based investing. I don't want to own a portfolio of do-gooders, because I tried that years ago at my hedge fund and a lot of do-gooders became no-good-nicks pretty much every quarter.

What I am talking about is having faith in certain CEOs simply because they have gotten it right in the past and deserve to get the benefit of the doubt for the good work they have done for many years on the job and many good quarters, if not years.

Prime example? Bob Iger at The Walt Disney Co. (DIS). Last time Iger reported, he delivered a good-looking quarter, not perfect, and didn't provide the blueprint that people were looking for with the purchase of Lucasfilm for $4 billion. Plus, there were worries when it came to the future of ESPN, even as he told you not to worry about it. He said that ESPN -- one of the most amazing properties in the world because it simply can't be DVR'd effectively -- would do fine in 2013. Given how ESPN has been responsible for so much of the earnings power at Disney for many years, this lack of clarity stunned investors and traders alike.

Consequently, the stock, which had traded as high as $53 before the call, plummeted to $47 as analysts, traders and investors showed a remarkable lack of faith in Iger's assurances. I thought the whole sell-off was insulting to Iger and assured people that this would be a tempest in a teapot, and an investible one at that. I told Iger that too, simply because I was astonished that this man, who has done so much good at Disney, didn't get the benefit of the doubt.

Fast forward to last night. Iger delivered a quarter that literally answered every objection and then some. First, he laid out a multiyear vision for Lucasfilm, including multiple Star Wars iterations, plus other Star Wars-derived movie and entertainment properties that nobody had really counted on.

You could tell that this acquisition is sounding more and more like Marvel II, a repeat of the amazing success of that acquisition. Oh, and don't forget that the Marvel-derived Iron Man 3 (sans my cameo in the first Iron Man) will be out soon to what I suspect will be blockbuster success.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs