Fundamentals
As far as I'm concerned, after Chapek became the CEO in 2020, he had the idea to transform Disney into a modern media company, but this attempt was a failure. Disney is losing money in its media business. But since Iger returned as the CEO in November 2022, we can hope that the damage done by Chapek will be taken care of over time. He has agreed to a two-year contract, and within that time, we can expect some massive restructuring in the company. It was under him, from 2005 to 2020, that the stock had a massive rally of about 425%. The recent issues with Charter Communications are all just overhyped, and they will be taken care of. I don't think they will affect the long-term growth of the company under a strong management. The reopening of their international resorts and vessel services after the lockdown will also contribute to the future growth of Disney.
Technicals
There is a descending pattern within a pattern formation, and it is also aligned with the lowest levels that the price reached during the COVID crash. So, I expect smart money to be involved at these levels, and we can anticipate a move of about 50% to the top of the descending channel and over 130% to the all-time highs. So, the risk is worth the reward, considering the company's legacy.
Conclusion
I already have two entries at various levels, and with the current addition, I've summed up my total holding in this stock to 2.5% of my portfolio. I won't be adding any more to the stock, if it crashes further, until I have enough clarity about the reason for the crash. I'll update if I make any changes going forward.
As far as I'm concerned, after Chapek became the CEO in 2020, he had the idea to transform Disney into a modern media company, but this attempt was a failure. Disney is losing money in its media business. But since Iger returned as the CEO in November 2022, we can hope that the damage done by Chapek will be taken care of over time. He has agreed to a two-year contract, and within that time, we can expect some massive restructuring in the company. It was under him, from 2005 to 2020, that the stock had a massive rally of about 425%. The recent issues with Charter Communications are all just overhyped, and they will be taken care of. I don't think they will affect the long-term growth of the company under a strong management. The reopening of their international resorts and vessel services after the lockdown will also contribute to the future growth of Disney.
Technicals
There is a descending pattern within a pattern formation, and it is also aligned with the lowest levels that the price reached during the COVID crash. So, I expect smart money to be involved at these levels, and we can anticipate a move of about 50% to the top of the descending channel and over 130% to the all-time highs. So, the risk is worth the reward, considering the company's legacy.
Conclusion
I already have two entries at various levels, and with the current addition, I've summed up my total holding in this stock to 2.5% of my portfolio. I won't be adding any more to the stock, if it crashes further, until I have enough clarity about the reason for the crash. I'll update if I make any changes going forward.
