been "pummeled" since it reported its quarter, even though it came out with good numbers, Jim Cramer said on his
"RealMoney" radio show Monday.
One theory as to why this is happening is that its prime-time TV costs too much, he said. Cramer said he understands that Disney is No. 1 in the prime-time arena and that the company should be making the most money from that, but costs are up and ad revenue is down.
However, the problem with this theory is that the company also has a great movie business, which should make up for its TV business, he said. Therefore, this can't be the only problem.
A second theory is that Disney's theme parks aren't working. Cramer doesn't buy this because he believes that its theme parks have plenty of room to expand.
"A third theory holds that Disney has had to spend too much to maintain share in ESPN," he said. "But I find the spending to be a short-term issue."
"So why isn't it moving up?" Cramer asked. It's because
is "sapping" all that is good about the media, he said. No one ever needs to watch a commercial with Google.
This doesn't mean that Disney's stock is done. But it is currently defenseless against the Web, and its costs are going up, he said,
A year ago Cramer said he was pushed to recommend
off a potential buyout.
However, before getting a bid, the company's stock "got cut in half," he said.
"That's the problem with predicting the private-equity bids," Cramer said. "You simply can't make any money trying to anticipate what these people will buy."
Marker players should not speculate in companies that have bad fundamentals, he iterated.
"You could have predicted Eddie Bauer would have gotten a bid, but you would not have made any money from it," Cramer said. "Eddie Bauer would have gotten you $9 -- $7 less than when it was pushed to me."
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