Disney’s ($DIS) shares have sat out the multi-year bull market and we have sat out Disney.
Our analytical criticism is multi faceted:
* Admission prices at the company’s theme parks are absurdly high — a weakening consumer in the K-shaped economy will almost certainly experience demand elasticity (and a reluctance to attend the parks).
* The company’s balance sheet is debt heavy from a slate of poorly conceived acquisitions. At worst, it could inhibit needed capital spending/expansion at parks, et al.
* AI remains a threat to a number of Disney’s businesses.
All this said, there is a price (and favorable reward vs. risk) for everything. I live under $90 for Disney.
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box."
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