Disney: "Waaaaaah We're worth more money!"
Posted: Sun Jun 22, 2008 11:13 am
I found this interesting:
http://uk.reuters.com/article/ousiv/idU ... 0220080622
Disney wants higher valuation, Wall St hesitates
The article opens with:
I've not really been keeping up with Disney's profits, but a quick look-see on the Reuters shows that the share price rose steadily from 2003 until mid-2007 and since then has somewhat levelled off.
I can't help but wonder what is behind this latest tactic from Disney. Is it worried now that its stock is somewhat stagnant that it has committed to much money to its future motion picture commitments?
You know, while Eisner was CEO, it didn't resort to "begging", which is basically what Iger and Staggs are doing now. Thankfully, their "arguments" appear to be falling on dead ears. Surely if they were a consumer goods company, its turnover and profits would have already convinced the market that they were on the up?
http://uk.reuters.com/article/ousiv/idU ... 0220080622
Disney wants higher valuation, Wall St hesitates
The article opens with:
I can't help but detect a hint of desperation here from Disney. Its not often you hear of companies waging campaigns to attempt to reclassify their business with analysts. I don't know what Disney expect to happen from its "campaign" but the market will look at the quarterly and yearly profits, and set its value from those.Walt Disney Co (DIS.N: Quote, Profile, Research) is waging a campaign to convince investors that its product range and brand make it more valuable than media peers and more like a consumer goods company -- but so far that has proved a hard sell on Wall Street.
On calls with analysts and at investor conferences since November, Chief Executive Bob Iger and Chief Financial Officer Tom Staggs have argued that the second-largest U.S. entertainment company should be viewed as a stable global brand rather than a cyclical, hit-driven media business.
I've not really been keeping up with Disney's profits, but a quick look-see on the Reuters shows that the share price rose steadily from 2003 until mid-2007 and since then has somewhat levelled off.
I can't help but wonder what is behind this latest tactic from Disney. Is it worried now that its stock is somewhat stagnant that it has committed to much money to its future motion picture commitments?
You know, while Eisner was CEO, it didn't resort to "begging", which is basically what Iger and Staggs are doing now. Thankfully, their "arguments" appear to be falling on dead ears. Surely if they were a consumer goods company, its turnover and profits would have already convinced the market that they were on the up?