Stupid Guest Tricks

I've read that many shares of Disney stock are held in very small blocks, basically as gifts for kids. If you're thinking about doing something like that in the near future the time to purchase may be now. The price per share was close to its 52-week low earlier today.

In the interests of full disclosure, I currently hold no Disney shares. But, at these prices, I'm getting real close to buying back in.

25-30 years ago,Disney stock was down to about $5.00/share.I had gotten a 'very' nice Christmas bonus that year and 'thought' about buying 100 shares, OH WELL,stupid me. :mad:

I bought one share of Disney stock through oneshare.com and have it framed and hung in my Disney room. Every year I get my 20+ cent dividend check.

Okay, Hobie, some investment advice, please. What's the best way to purchase some stock like you mentioned? I don't have a financial advisor or any other type of advisor, for that matter.

Investment advice is one thing but finding a broker that will do small amounts is another. I nosed around and found a few options.

ING They also offer online banking
http://content.sharebuilder.com/MgdCon/ ... /index.htm

Scottrade
http://www.scottrade.com/

eTrade
https://us.etrade.com/e/t/home

The only problem I see is the fee to stock price ratio is pretty bad when buying a couple shares for gifts.

Disney is currently paying $.39 per quarter dividend or $1.56 per year. That's a 6.8 percent yield at today's closing price. That's really good!

hobie16 wrote:Investment advice is one thing but finding a broker that will do small amounts is another. I nosed around and found a few options.

ING They also offer online banking
http://content.sharebuilder.com/MgdCon/ ... /index.htm

Scottrade
http://www.scottrade.com/

eTrade
https://us.etrade.com/e/t/home

The only problem I see is the fee to stock price ratio is pretty bad when buying a couple shares for gifts.

Disney is currently paying $.39 per quarter dividend or $1.56 per year. That's a 6.8 percent yield at today's closing price. That's really good!

The question is whether or not Disney is going to be able to maintain that dividend. In a recession, advertising revenues go down and leisure travel often gets curtailed. Disney will have to offer up deals to get people in which will further decrease profits.

EpcotFan wrote:The question is whether or not Disney is going to be able to maintain that dividend. In a recession, advertising revenues go down and leisure travel often gets curtailed. Disney will have to offer up deals to get people in which will further decrease profits.

Good point. Most old line companies who pay a dividend are very resistant on reducing or eliminating it as people who buy and hold plan their income around it. When IBM was in trouble the last thing they did was reduce the dividend. They should have eliminated it but they had a track record of paying since 1916. If the dividend was reduced it could cause a sell off.

Ultimately, the best gauge of a company is their cash. If cash grows quarter to quarter, buy. If their shedding cash, sell fast and/or look for a new job.

Thanks for the links, Hobie.

EpcotFan wrote:The question is whether or not Disney is going to be able to maintain that dividend. In a recession, advertising revenues go down and leisure travel often gets curtailed. Disney will have to offer up deals to get people in which will further decrease profits.

I can tell you that Ticket prices have no impact on the company. The amount the company collects off each ticket is about $0.07 per person that enters the gate. The other $79.93 goes to employee "bennifetts" and such. The company makes its money with ever purchas made inside the parks boundries.


The Doctor

Doctor McKey wrote:The company makes its money with ever purchas made inside the parks boundries.

The product with the highest margin is probably the french fries.

You can also buy Disney stock directly from the company on line, but it appears they have a $1000 minimum + $10 enrollment fee. This is the time to invest, as their stock is "on sale"! As Hobie stated, the price is currently very close to its 52-week low of $21.25.
Buy! Buy! Buy! :scrooge:

http://corporate.disney.go.com/investor ... nvest.html