Friday File: Mampilly’s “Greatest Medical Breakthrough in History” pitch, plus some updates

Real Money Portfolio updates, plus a Profits Unlimited teaser solution that's being pitched by Banyan Hill as the "#1 Stock for 2018"

By Travis Johnson, Stock Gumshoe, August 18, 2017

Fridays are the day I write for you, my dear Irregular friend, so this time you’re getting a teaser solution that I’ve been inspired to write about today, plus a few updates on my Real Money Portfolio stocks.

First, those (pretty minor) updates…

One of the worst-performing stocks I own over the past year or so (and worse, I own some options as well) is Disney (DIS), which disappointed investors again with its most recent quarterly release. Walt’s creative offspring are still dominating the box office, still doing well when it comes to theme parks, including internationally, but the worries continue about their US TV networks and the performance of their various boob tube assets — mostly ESPN, which went from hero to goat in world-record time as they see subscriber counts stagnate on cord-cutting while costs balloon because of crazy-high sports league rights fees, but also the somewhat surprising news that Disney was pulling out of Netflix and would be developing its own “over the top” streaming services to reach customers directly… including buying control of BAMTech (that’s the streaming tech company that put Major League Baseball online, Disney has been a part owner for a long time but announced they’re “accelerating” their buy-in of a controlling stake).

Disney’s actual earnings report was fairly boring — they came in pretty close to expectations, with revenue and earnings that were about the same as a year ago, and the brightest bright spot a year ago, the studio business (maker of hit films, and home to the Pixar, Marvel and Lucasfilm divisions), had a significantly worse quarter than a year ago, mostly because Guarians of the Galaxy 2, Pirates of the Caribbean 5 and Cars 3 failed to match up to last year’s Captain America: Civil War, Jungle Book, and Finding Dory.

As of now, Disney is expected to earn $6.54 per share next year, boosting revenue by 10% or so partly because of their late 2017/early 2018 film slate that includes the next core Star Wars film and because they’re moving closer to getting “Star Wars Land” open at their Florida and California theme parks, so the stock remains at a bit of a premium price relative to the growth rate (that’s a forward PE of about 15, with growth of 10% or so next year and slowing growth expected after that).

My opinion hasn’t changed, though, ...

Irregulars Quick Take Paid members get a quick summary of the stocks teased and our thoughts here. Join as a Stock Gumshoe Irregular today (already a member? Log in)

Sign Up for a Premium Membership

To view the rest of this article (and to have full access to the rest of our articles), sign up.
Already a member, log in.

Become a member