Walt Disney Co. - Company and Investment Ovewview

Company History Overview Between the resorts, motion pictures, and merchandising Disney has done it right. They have diversified the company. With not focusing all their attention on one product or idea they have become well know all over the world. Most families take their kids there at least once, and some families return every year to the resorts. It is a child’s dream to go to Disney World and when you get there you cannot imagine anything better as a child. The Disney Company was founded in 1923. The company’s foundation was studio entertainment. Disney distributes pictures under Walt Disney Pictures, Touchstone Pictures, Miramax Films, Buena Vista and many more. Everyone knows Disney movies, Bambi, Cinderella, Beauty the†¦show more content†¦In 2005 the consumer product segment remained in their current declining trend at 2.1 billion. The contribution from media networks, parks and resorts, studio entertainment, and consumer products totaled the company revenues in 2005 to 31.9 billion. This increased from 2001, which totaled 25.1 billion. The overall operating income for Disney is as follows: in 2001 they grossed over 4 billion dollars, in 2002 operating income drastically decreased to 2.8 billion dollars, in 2003 the gradually increased to 3.1 billion dollars, in 2004 they continued increasing to 4.5 billion dollars, and in 2005 they slightly increased to 4.6 billion. (See figure 1.0 for graph). Stock Trend Analysis/Analyst Opinion Given the information in Figure 1.1 (see appendix), general conclusions can be drawn. Between now and the last three months, recent trends have not been to sell Disney stock, but to strongly buy and retain them. This shows that Disney’s financial health is strong due to high demand to retain and invest in the Disney Company. This table displays that the financial health of the company is likely to grow and keep their current trend of financial success. According to an analyst opinion at the yahoo finance website, the media industry trend is to buy and hold onto media stocks. This is reflective of Disney’s stock rating of 2.1. When analyzing Disney’s corporate information, we