Parks & Movies Boost Disney, While the Media Segment Struggles

The Walt Disney Company (NYSE: DIS) reported earnings (PDF link) after the market closed on Tuesday, May 8th, and the “House of Mouse” posted solid results, driven primarily by blockbuster movies and attendance at its amusement parks:

  • Net revenue of $14.5 billion, up from $13.3 billion (9% increase year-over-year)
  • Net income of $2.94 billion, up from $2.39 billion (23% increase YOY)
  • Earnings of $1.95 per share, up from $1.50 per share (30% increase YOY)

If you’ll recall from a few weeks ago, Disney was one of two investments that I was keeping a close eye on. I was concerned about the subscription base of the company, with carriage fees from cable companies providing a steady stream of revenue for the entertainment behemoth. However, in recent years, Disney has been losing subscribers as more and more people “cut the cord” and access their entertainment through non-cable providers like Hulu or Netflix. The draw of live sports just hasn’t been enough to keep people subscribed to cable, especially when most major sporting events are televised on stations that can be viewed by using an antenna if so desired. Continue reading

What I Watch in My Stocks, Part 2

Note: This is a continuation of my post from yesterday. Feel free to go read the two introductory paragraphs there if you want to know the purpose of these posts!

Up first today are the four companies in my “War on Cash” basket, which is an idea that I I admit I’m stealing this idea from Jason Moser of The Motley Fool, who calls the “War on Cash” one of the more interesting developments in investing.

Mastercard Incorporated (NYSE: MA) [Earnings – May 2 Before Market Open (BMO] – For Mastercard, the word is CASH. Chances are, we are going to get further removed from using cash in our lives, so companies like Mastercard will benefit because it is their infrastructure that a cashless society will run. Mastercard is the second largest of the four companies, with $186.7B in market cap, $12.5B in revenue and $4.7B in income. This is the longest held of the four “War on Cash” companies that I own, and I plan on holding them for a while.

PayPal Holdings, Inc. (Nasdaq: PYPL) [Earnings – April 25 AMC] – PayPal joins Mastercard with the word CASH. A recent addition to the portfolio, I was simply rounding out the thesis behind the “War on Cash” basket mentioned above. PayPal was spun off from eBay a few years ago, and they have been successful in their own right since being granted its independence. It’s the third largest of the “War on Cash” companies, checking in with a market cap of $95.4B, annual revenue of $13.1B, and income of $1.98B. Continue reading

FR: Decades of Great Performance from 9 Dow Stocks

Article: Decades of Great Performance from 9 Dow Stocks

My next “Fool Revisited” piece is the third entry from my mini-series on the Dow Jones (you can read Part 1 and Part 2 at those links). Like the previous articles, I broke the 30 components of the Dow into 4 groups based on how long they have been assigned to that garbage index (you’re weekly reminder that I really hate the Dow Jones Industrial Average), and the group below had been on the Dow for at least 20 years at the time of article publication. And unlike the previous articles, all nine stocks profiled are still in the DJIA.

The intent of this series was to introduce the members of the Dow, and the next logical step was to discuss whether or not a company’s placement on the Dow affected stock performance. Unlike the members of the S&P 500 – which find homes in a LOT of institutional funds – the number of Dow funds and ETFs out there are pretty limited.

This is often why you’ll see above average gains in a stock when it is added to the S&P 500, since there are hundreds – if not thousands – of stock funds and ETFs that must purchase shares in the company. The inverse is true as well; when a stock is removed from the S&P 500, it tends to be sold off a bit and lose some value. This doesn’t appear to be the case with the Dow, but it is definitely something that I want to look at in a bit more detail in the near future. Continue reading

FR: Spending Money to Make Money With the NFL

Article: Spending Money to Make Money With the NFL

Like many of the previous articles in this series, the next article in my “Fool Revisited” series was sector piece. And like my first article, it was inspired by the NFL, though this time it was more a reaction to a season in full swing and not the resolution of that year’s lockout. The focus in this article was media companies, and I tried to point to all the media partners that the NFL had and how those companies were earning more than their astronomical rights fees from advertising.

Whether this argument would hold up these days remains to be seen, and with new “partners” joining the fray – Amazon broadcast numerous Thursday Night Football games this year and Verizon’s Yahoo! Sports streamed some postseason games – the money the NFL receives for its broadcasting rights might be more lucrative for both them and their partners. However, NFL viewership seems to be down, and while some people have pointed to “flag” protests or concussion and injury concerns, it could just simply be a change in our television viewing habits that have driven the change. Continue reading