DVC Announces New Leader

[keishashadow]

After reading this thread I decided to open our portfolio to see how much we lost last week (don't ask) and where DIS stock was this am after the DVC shakeup.

I'm not the financial guru in our house, but it appeared as though DIS stock had bounced back after a loss early last week. It's dropping this am (who knows if DVC shakeup has any bearing). Likely my DH will consider it yet another buying opportunity, but i'm going to point out that we have a college tuition bill due in a week& Merrill-Lynch dropped it from a buy (along with many entertainent stocks).

I'm sure the more savy investors here are aware, but for the casually interested among us, I found a few interesting articles as to how DIS reported earnings in the 2nd quarter but many question their valuation as to actual vs stated cash flow when a cash conversion cycle is utilized.

I'm aware other companies are employing the same sort of creative accounting in recessionary times, but IMO the current DVC dues issue in Alunai should spur the Disney powers-that-be to re-think to their accounting practices across the board.


http://www.fool.com/investing/general/2011/08/15/is-walt-disney-making-you-any-cash.aspx

http://www.dailyfinance.com/2011/08...ings-are-worse-than-the/?source=TheMotleyFool

http://www.dailyfinance.com/2011/08/10/disney-shares-dropped-what-you-need-to-know/

 

[CMOORE185]

It had better carry forward for the length of the CONTRACT, not just for one year! A two-tiered system is clearly possible with the current computer applications and is already in use for VB (?), from what I read here, though I do not own there and have no first-hand knowledge.

I purchased Aulani a few months back, just before they discontinued sales, obviously not knowing any of the problems with the finances we are all just learning about. The stated member dues amount of $4.31/point, clearly outlined in my CONTRACT (legal and binding between me and DVDMC), definitely figured into my decision to purchase.

If they now say that the amount should be double (or more!), that's fraud, pure and simple, especially if it was known to JL and his cronies, which seems clear at this point that he did! Imagine the lawyers lining up at their doorstep!

Now you know why JL and the others got the boot in an unceremonius fashion (and without severence) late on a Friday afternoon! And now we all know why they simply can't "fix" the dues amount at a new level and get on with sales. They are legally bound by the existing CONTRACTS to honor their word!

Thank you GRAYDON (or should we call you DEEP THROAT? ) for breaking this news!

And welcome to Ms. Bilby! You have a huge job ahead of you to turn this wonderful part of Disney operations around. I have owned since December of 1991 (yes, one of the first believers!) and have never once regretted my purchase (and multiple add-on purchases, direct and resale since then)... Please don't let Aulani be my first!

And please read the DIS regularly... happy owners, like me and many others, are your best assets! And, as you can see, we are totally unafraid to share our opinions openly and regularly, so you can start saving money on the polling...just come by here and sit a spell!
Welcome aboard!

If the credit is permanent (which I think it should be) that means all new owners with have higher MF's than they should have, because someone has to make up the short fall in dues the original owners are not paying. Knowing this I would never buy their.

 

[mommacat56]

If the credit is permanent (which I think it should be) that means all new owners with have higher MF's than they should have, because someone has to make up the short fall in dues the original owners are not paying. Knowing this I would never buy their.

OR, better yet...DVDMC can keep paying the difference (as a "fine" if you will, or just chalk it up to the cost of doing business?), thereby keeping original owners' fees from rising by huge percentages and keeping new owners' dues fair and reasonable. JMHO!

 

[CMOORE185]

OR, better yet...DVDMC can keep paying the difference (as a "fine" if you will, or just chalk it up to the cost of doing business?), thereby keeping original owners' fees from rising by huge percentages and keeping new owners' dues fair and reasonable. JMHO!

I thought of this, than I said to myself, nah they will never do this. I am sure there will be plenty of new owners that won't even realize some owners pay different MF's than them.

 

[dzorn]

Well it is nice to recieve an e-mail communication in a timely fashion, so I guess we are off to a good start.

Denise in MI

 

[aggiemullins]

I'm not entirely familiar with Vero Beach's dues, but isn't there 2 different pricing structures for VB, a subsidized and non-subsidized? Isn't it for kind of the same reasons?

Anyone with better knowledge of VB, correct me if I'm wrong, but they miscalculated then too because they originally were going to make VB much larger then its final size. Because of poor sales they greatly reduced the size of VB, changing the MF calculations.

I believe they then created two tiers of MF's for the ones who were lucky enough to have bought before the change and all the rest. Now DVD pays the difference for the length of the contract, I believe. Again, anyone feel free to correct me on my VB history. I do know you can occasionally see a subsidized VB contract come on the market and it's dues are MUCH lower then the non-subsidized.

Perhaps they will do the same here...

 

[SusieBea]

 

[Mai Ku Tiki]

Yes, that's nice, but they didn't send it to everyone - not such a good start.

I'm still waiting

 

[CWO4DVC]

By chance are those who received the news from DVC registered at DVCMember.com to receive communications?

 

[tmm09]

By chance are those who received the news from DVC registered at DVCMember.com to receive communications?

I received the email and it came from the same email source that I receive "member perks" emails from...not sure if that is because of DVCmember.com or not. I am registered there.

 

[Mister Incredible]

No dancing here, even with the personal references for Claire. Since she has a lower title than Jim, I'm not sure how much influence she will be able to have without a lot of red tape. Here's hoping!! Time will tell.

 

[Mai Ku Tiki]

I'm still waiting

Message received...

 

[hakepb]

No dancing here, even with the personal references for Claire. Since she has a lower title than Jim, I'm not sure how much influence she will be able to have without a lot of red tape. Here's hoping!! Time will tell.

The title must be the "Disney way."
Someone earlier said Jim started as DVC head with the same title as Claire now has.

 

[wildernessDad]

Well it is nice to recieve an e-mail communication in a timely fashion, so I guess we are off to a good start.

Denise in MI

Not really. I did not receive an email about this.

 

[manning]

I can't wait to see how this shakes out. Large companies such as Disney do not fire several highly-paid executives for an unintentional accounting mistake without giving severance. The purpose of severance is to get a release and waiver of claims so the company does not get sued. The only reason the company does not worry about getting this is if the employees are fired for cause, ie, they've done something that is more than just a mistake.

Were JL and his buddies misrepresenting the cost knowing they can cut costs on the project to save some money, and also increase dues later? Did they discover the error and attempt to hide it and mislead company execs and regulators? Or was this just the last straw of something bigger? Only time will tell.

I'm was't an auditor but worked with auditing on several audits. I had computer skills to pull reports they needed. I worked for a LARGE company and can say when they nailed someone they stayed nailed. They are uncanny. The very first time my section got audited within a half day he told me I was being set up by my boss. Six months later the boss was walked out.

If something happened it is big.

 

[stitchineeyore]

Not really. I did not receive an email about this.

I didn't either. Wouldn't know anything about the goings on of the last few days if not for the Dis folks!

 

[Dziactor]

I didn't get the email.

 

[smjj]

Ahhhh improvements already. The DVC sign-in has new music and the logo on the sign-in page is no-longer fuzzy!!!!smjj

 

[jstarcze]

I never got the e-mail!

 

[dvcbrad]

No email here either. Maybe this ought to be one of her first issues to address ... the inconsistent distribution of information to members! It seems like a lot fell apart under Lewis. Hopefully some things will get fixed moving forward.