This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Disney's Great Leadership & Content Mean A Big Winner

Nick Sousa, Kapitall  With a chairman like Alan Horn, Walt Disney Co. (DIS) is moving towards a very bright future. Horn is an industry veteran who is not afraid to get his hands dirty and is already unanimously respected by the company’s management. Prior to his current position, Horn was president of Warner Bros. from 1999-2011.

Horn isn’t afraid to take risks and this could be a difference maker in years to come. Shortly after becoming chairman, Horn spent an extra $15 million to make changes on “Oz: The Great and Powerful”, which already had a budget around $200 billion. Oz beat box office projections bringing in $80 million domestically and $69.9 million abroad on its opening weekend.

[ It May be Time for Microsoft to Cancel Surface RT]

It’s content like OZ and films coming from studios under the Disney umbrella such as Marvel, Pixar Animation, and Lucasfilm that help fuel growth. Strong film content is a driving force for the various parts of Walt Disney, with blockbusters helping fuel new rides at theme parks, TV shows, and video games. With this in mind, Horn is trying to push ahead with plans to release more live action movies such as “Tomorrowland” and a new “Pirates of the Caribbean”.

Another big winner for Disney will be recently acquired Lucasfilm, which owns the Star Wars franchise. The Star Wars franchise has generated $27 billion through box office, DVD, video game, book and toy sales over its lifetime. Starting in 2015, Horn hopes to tap into this cash machine by releasing a new Star Wars sequel or spin off every year.

Business Solutions: Investing Ideas

Walt Disney Co. should continue to be a big winner over the next few years with such a strong leader at the helm and new blockbuster content coming down the pipeline. Analysts have projected Disney’s revenue growth to be 6.6% for both 2013 and 2014 with operating margins expanding as well. EPS is also estimated to grow from 3.13 to 3.92 by 2014. Although Disney is trading at an all time high, there is plenty of potential to keep trending higher if it can continue to grow and improve its portfolio of content.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs