We published an update on this Long Idea on May 19, 2021. A copy of the associated Earnings Update report is here.
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3 replies to "Disney’s Strategy Is Working"
you have DIS as an avoid. Why long idea?
DIS is this week’s long idea but on my portfolio page it is shown as “unattractive suspended”. What’s up with that?
Charles and James:
As noted in the article, DIS currently has a “Suspended” rating due to the impact of its acquisition of 21st Century Fox. What this means is that the impact of the acquisition distorts the fundamentals of DIS in a way that our model (or any other model) cannot fully account for. As a result, we do not consider the current financials to be an accurate reflection of the risk/reward in the stock. For more information on our suspended ratings, see here:
https://www.newconstructs.com/analyst-notes-internal/
DIS had an Attractive rating when we first recommended it as a Long Idea in January 2017, prior to the Fox acquisition, and we continue to be a believer in the long-term strategy of the company. As a result, we are maintaining it as a Long Idea despite the rating.