hopemax
08-24-2001, 06:05 PM
CNBC (http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P5176.asp)
The first stock listed, Disney.
Disney’s (DIS, news, msgs) return on invested capital has dropped to 0.7% for the last 12 months-that’s way below the 5.7% average of the last five years. In the short term, the company’s problems are a sagging advertising market for its ABC TV network and a downturn in attendance at its theme parks.
But long-term buy-and-hold investors should be more concerned with Disney’s inability to hold on to its audience as it ages. Pre-schoolers love the mouse and pooh bear but older kids move onto to Viacom’s Nick and MTV brands. The stock’s troubles aren’t recent-shares have been stuck in a trading range between $25 and $43 since the summer of 1997.
The first stock listed, Disney.
Disney’s (DIS, news, msgs) return on invested capital has dropped to 0.7% for the last 12 months-that’s way below the 5.7% average of the last five years. In the short term, the company’s problems are a sagging advertising market for its ABC TV network and a downturn in attendance at its theme parks.
But long-term buy-and-hold investors should be more concerned with Disney’s inability to hold on to its audience as it ages. Pre-schoolers love the mouse and pooh bear but older kids move onto to Viacom’s Nick and MTV brands. The stock’s troubles aren’t recent-shares have been stuck in a trading range between $25 and $43 since the summer of 1997.