Walt Disney cut to sell by Citigroup
LONDON (MarketWatch) -- Walt Disney & Co. (DIS) was downgraded to sell from hold by Citigroup, which cited concerns over theme parks. It says fourth-quarter room sell-out at East Coast resorts probably fell in the fourth quarter, hotel room spot pricing is falling below forward pricing on both coasts and spot-market pricing may spill over into forward pricing. "Disney's strategy and strong execution may simply get overshadowed by macro-economic forces," it said.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b1B1FA653-F48C-48C8-8776-D23F9436801E%7d&siteid=yhoo&dist=yhoo

This is as dumb a downgrade as I have ever seen: "Disney's strategy and strong execution may simply get overshadowed by macro-economic forces." Translate, there is nothing wrong with Disney but we need a downgrade. BTW, S&P has it as a 5* Strong Buy.

The financials look very good: EPS is going up, P/E is going down (lowest this millennium), cash flow is going up, dividends are going up, dividend pay-out ratio is going down, shares outstanding is holding steady.

Walt Disney is a world wide company with over 70 years of experience. It is one of the strongest brand names and the owner of many strong brand names like Mickey and Minnie. As an entertainment company it is well diversified with theme parks, films, and lots of royalty producing collectibles.

Mike's 30 year chart is looking interesting:

http://invest.kleinnet.com/bmw1/stats30/DIS.html

I suggest we buy DIS for our BMW Method portfolio. What do you say?

Denny Schlesinger

	Buy DIS
	Don't buy DIS

Click here to see results so far.