What's Going on with DIS?

As I've said before, I own Disney (DIS) stock and so far, it's had a decent return for me. But what am I supposed to think about the latest reports about the company? For instance, there's good news:

• Disney still has the magic - The media and entertainment company should perform at the top of its peer group for years to come, says analyst William Drewry.

No, the news is bad:

• Get Disney treasure while you can - It was another magical quarter for the Magical Kingdom, thanks to across-the-board success in films, TV and theme parks. Yet for the stock, the good times are about over.

No, the news is mixed:

• Disney Doubles Quarterly Profit - The media giant's earnings sailed past analysts' forecast, but the stock slumped as some analysts worry that the performance may not be repeatable.

So what's an investor supposed to do/think with this mish-mash information?

A couple thoughts on it:

1. No wonder so many actively-managed funds perform so poorly. These "experts" don't have any idea what's going on.

2. Just another reason I like index funds. At least I can understand them. ;-)

Comments

[efipo.com]

Not a huge fan of entertainment companies. I dont see a growth potential in that sector. My old financial firm held DIS., but they were extremely conservative.

[jim]

Heeey I own Disney too! :)

[Nagel]

Ignore analysts almost comletely and do your own homework on stocks. Analysts might give you some information to get you interested, but do not buy or sell just on their recommendation.

[Duane Gran]

At the end of the day you have to decide if the issue is worthwhile to own for the duration you plan on holding it. If you invest for dividends the decision is easier to make. If you invest in order to sell at a profit (the prevailing strategy) then it is anybody's guess what it will do. Either way I think the buy and hold investor comes out better than the ones with their ears tuned to the expert prognostications.

[Jeremy]

I agree with jim, never listen to what the "experts" say about a company. Everyone has their own take, their own expectations and what they project the stock will do. You'll almost never find consistent data between a bunch of analysts. If you want to make sound decisions on individual companies, dig through the financials yourself and come to your own conclusions.

As far as my Disney holdings, I think we're going to hold onto the stock simply because we only own 1 share and it is framed! It was a gift my wife received a long time ago, and I must say it is a very nice looking certificate.

[Jeremy]

I apologize, I that was Nagel who made the comment above, not jim.