Eye on the long-term prize with Disney shares

Eye on the long-term prize with Disney shares

Our focus on Disney remains the coming transformative events that are the acquisition of Fox’s TV and movie assets, and the 2019 launch of its Disney streaming service. The former doubles down on the existing content strategy, while the latter could lead to a change in how investors value Disney shares. To me, that is a far greater opportunity than the modest June quarter miss on the top and bottom line.

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Disney continues to execute as it preps its streaming services

Disney continues to execute as it preps its streaming services

Disney’s March quarter earnings confirmed the power of our Content is King investing theme as well as the benefits to be had with lower tax rates and share buyback programs. Operating results were favorable as was cash generation, and with prospects of more to come Disney is moving down the path with its own direct to consumer streaming services. If those services are successful, it could cause a major re-think in how peopel value DIS shares.

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Fortnite is the harbinger of more pain for the already struggling toy industry

While it is rather clear to us why Toys R Us is filing bankruptcy and even Star Wars themed toy sales weren’t enough to help Mattel (MAT) this past holiday season, in-app purchases for the new iOS version of Fortnite are rather revealing. The recently launched gaming app, which sits at the center of our […]

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Disney’s buying Fox has a Connected Society appeal

With consumers increasing shifting their content consumption to streaming services, be it online or via mobile, we are seeing a number of moves by companies to position themselves accordingly. AT&T (T) is looking to buy Time Warner (TWX), Alphabet (GOOGL) is expanding the reach of YouTubeTV and Apple (AAPL) is hiring programming talent. Amid all […]

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Remaining Opportunistic as the Market Gets Cautious

Remaining Opportunistic as the Market Gets Cautious

We expect Disney shares are likely to trade sideways over the next several weeks as the market continues to digest the recently announced moves by the House of Mouse. We, on the other hand, continue to see our Content is King investment theme providing significant tailwinds to the business, and as such we’re suspending our stop-loss and will instead look to use further share weakness to improve our cost position.

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The Tematica Take on Disney’s Pending New Streaming Service

The Tematica Take on Disney’s Pending New Streaming Service

We expect Disney shares are likely to trade sideways over the next several weeks as the market continues to digest the recently announced moves by the House of Mouse. We, on the other hand, continue to see our Content is King investment theme providing significant tailwinds to the business, and as such we’re suspending our stop-loss and will instead look to use further share weakness to improve our cost position.

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PwC Data Confirms Our Content is King Investing Theme

PwC Data Confirms Our Content is King Investing Theme

We’ve touched on this aspect of our Content is King investing theme before, but nothing like data from PricewaterhouseCoopers to confirm it and the theme itself! Box-office markets over the next few years are expected to grow more quickly abroad than in North America, where receipts have been relatively flat and are forecast to expand […]

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China will be bigger for the movie box office in 2017 than the US 

China will be bigger for the movie box office in 2017 than the US 

Whether its characters from Disney’s Marvel, Star Wars or Pixar stable, or even DC’s own Batman and Superman, people will flock to the movies to quench their content thirst. Increasingly the international box office is becoming a bigger and bigger factor in movie decisions. Some film, like Expendables 3, are being made solely because of […]

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