Disney stock is doing well

[pittsburghmarc]

As most are right now, but I have mixed emotions. Does this mean the end of the aggressive promotions we've come to expect over the past 3 years.

Don't get me wrong, I'm all for capitalism. I'm fortunate enough to be able to invest a good portion of my income, but I'm worried the promotions are going to go away!

Am I being selfish?

 

[simonkodousek]

I think as long as the economy is in the toilet the way it currently is, Disney will be "forced" to offer agressive promotions.

There are many travel related corporations whose stock has been doing very well as of late, yet good promos continue to be offered. Ex.: Wynn Resorts in Las Vegas... People have been getting $99/night rates (at a 5-star property, mind you) even when the stock prices have gone up from ~$85 to $115 in recent months. I know that Vegas is hurting pretty bad right now, but Disney is not an inexpensive vacation no matter how you look at it. People who are suffering because of the poor economy (no pun intended) will continue to come to Disney and spend money in the parks and resorts when good promos are offered.

I'm not sure if that made any sense...
~Simon

 

[mikelan6]

I'm thinking it's time to sell

 

[flyingcat2003]

I'm thinking it's time to sell

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/01/disney-stock-hits-10-year-high.html
This is an article from the LA Times yesterday. Disney stock hit a ten year high! I'm not going to sell but I do see your point.

 

[jcb]

Disney would love, of course, to wean visitors off of promotions but I don't see it happening. The stock price may as the times reports, reflect some enthusiasm about the parks and resorts segment but more likely it reflects the upped estimates from analysts. I haven't seen anything that says the park visitation has rebounded to early 2008 levels. The last report (from November painted a pretty dismal portrait of the parks segment earnings. The first quarter report will probably show high attendance but that reflects promotional activity. To be sure, the days of 7 for 4 are not going to return anytime soon (absent another financial meltdown) but until theme park spending increases significantly, look for some type of promotion to be offered for quite some time.

 

[exwdwcm]

As most are right now, but I have mixed emotions. Does this mean the end of the aggressive promotions we've come to expect over the past 3 years.

Don't get me wrong, I'm all for capitalism. I'm fortunate enough to be able to invest a good portion of my income, but I'm worried the promotions are going to go away!

Am I being selfish?

DH bought some disney stock finally after we invested in DVC. It did very well as you mentioned and he sent me a little note about it. (he was never a big disney nut, but is a huge stock nut- so we are meeting in the middle i guess!). '

i wish the aggressive promotions would stop or slow down a bit too. I can't take advantage of most of them anyway when using points and it'd be nice for the crowds to slow down a bit, but of course that is my very selfish wishful thinking and wouldn't help profits or the general population that can't afford to go without some great discounts. I know it will continue for a while. Heck, remember the days when they didn't offer all of these discounts, of course pre dining plan etc. It was sort of rare they offered up anything.

 

[sjs314]

My thoughts are the fact that last year investors were not happy with the rate of return on their investments with Disney Stock, profits and dividend were down.
Rumers said discounts would start to deminish which they have, we are seeing for the most part lower % off with General Public discounts.
Disney also offered FD and now %Room off rates earlier for 2011 than has been offered historically in the past, which may have caused inflated bookings earlier therefore causing the stocks last quarters profits to be higher than last year for the same quarter period showing a jump in profits ergo investors are happy , people wanting to visit WDW are happy and the stock is showing growth, at least for now, but I have to wonder what will happen in the not too distance future when people who have already booked for late summer and fall are not booking later in the year, will the stock slow down and show lower profits.
I think something big is coming for the Fall to coinside with WDW 40th Anniversary, which will run Oct 1 2011-Oct of 2010 but I do not see it as being better discounts, People will be flocking to Disney without extra discounts. Build it and they will come, there will be a New FantasyLand and the New Animation Studios Resort in 2012

Just like Universal which does not seem to offer discounts like Disney has in the past and yet has been overly busy because of the opening of Harry Potter, so to will Disney find out people will visit without discounts.