jepittman

Disney's China Move: A Big Growth Opportunity for Mickey

I'm not so sure they will make 'nothing' on their licensing rights. Qualcomm collects royalties on its intellectual property from China as do many other companies. This is a long term story suited for longer term investors. I own a few shares of DIS and found the article interesting.


On Nov 05 09:16 PM Alan Young wrote:

> Okay, it's good for Disney to get a foot in China. But I think you
> are exaggerating the importance of it.
>
> Disney World 1971 vs. today? That's absurd. You can't compare anything
> going on now, in China or anywhere else, to the past 38 years. I
> don't know anyone interested in 38-year-long investment plans. And
> anyway the value of the franchise is much more weighted to intellectual
> property than to theme-park traffic.
>
> But you already alluded to the fact that the Chinese will produce
> Disney-themed products without licenses. This is a certainty, because
> it doesn't even require criminal intent. Mickey Mouse was created
> in the 1930s, and there's no reason China should accede to the US
> rule that the copyright should apply everywhere forever. So to compute
> the value of the Chinese market to Disney, you'd have to separate
> the licensing deals (on which they will make nothing) from the cash
> spending at the theme park (which will make something). Show me the
> money, and then we'll talk about the value of the deal.

SYSCO Corporation: Dividend Stock Analysis

The lack of price performance is indeed frustrating and I suspect many investors have understandably reached the same conclusion as you. I believe that much of this is the result of anything consumer related being scorned by the vast majority of analysts and pundits. Its been pretty conventional wisdom for awhile now. Sometime within the next few quarters unemployment will start falling and consumers will start feeling better. One of the first things people do when they regain their financial confidence is go out to eat. It is a small ticket luxury virtually anyone can enjoy. I'm not suggesting you will get rich owning this and there are a lot of good investment opportunities out there but frankly there does not appear to me to be much downside risk in SYY at ~$25. In the heat of the recent panic it barely dipped below 20 and the market is up a lot more than SYY. The consumer will be back, the question is when - and SYY pays you a nice dividend that will likely grow while you wait for him.


On Oct 09 03:05 PM cosimdm wrote:

> I have owned Sysco in the past and have seen it's price go nowhere.
> I like the didvidend, but I would like to see a litttle price action
> after 10 years. I sold it.

Russia Makes the First Call for the Monetization of Gold

Funny. Thats how I think about them.


On Jun 17 01:34 PM User 357705 wrote:

> Whatever they decide to do USA can only bellow, stomp its feet and
> throw itself on the floor!

Sysco: Where to Find Value and Growth Potential

You just don't go back far enough. 'Never' is a long time. From 1995 until early 2004 the stock was a five bagger. In 2000 the share price was comparable to what it is today. Then the company earned $.68 per share and paid a dividend of $.23 per share. Today the comapny is expected to earn $1.77 per share (in a VERY depressed year) and will pay at least $.96 a share in dividends. I expect this year (ends June 30) will be the trough year. Next year could see EPS at $1.85 or higher and the dividend near $1.00 per share. For me it is a bit hard to swallow a bearish view at these prices unless there is a continued economic contraction.

Part of the reason for the recent poor price behavior is that the entire investment world believes the consumer is dead and isn't coming back. Its soup and beans at home from now on. If this is in fact how it plays out then perhaps SYY stays flat. I think human nature and old habits are hard to break. Dining out is a small ticket luxury and when the consumer starts feeling better he will return to his favorite restaurants and enjoy an evening with friends and/or family. When he does SYY will see their volumes soar and their EPS right along with it. When SYY decisivly breaks through $24 (it may be several more weeks) it should run quickly to $30. Like the author, I am an amatuer so talk with your financial advisor. IMO, SYY will be a five bagger again.


On Jun 17 09:47 AM mdpath wrote:

> Good company but its never been a good stock.

Sysco: Where to Find Value and Growth Potential

You can go to the company's website www.sysco.com/ and get the audio of a recent presentation to a Sanford-Bernstein investment conference. Bottom line is things are tough out there but have stopped going down. The economy should begin to recover in the second half of the year. SYY's fiscal year ends in June so perhaps next year brings positive earnings comparisons.

One other thing: SYY has made an aquisition in Ireland, their first overseas. It won't move the needle but they made it on their terms and the Pallas Foods group is a leading foodservice providor. The acquired company should benefit from SYY's enormous food sourcing network.

The stock has bumped its head recently around $24. Should it decisivly break this level it should move quickly to the $30 area. Get a position during this market pullback. Get it before June 30 and collect the next generous quarterly dividend, their 158th consecutive.

Here Comes Dow at 9,600, S&P 500 at 1,042

Folks this is the guy who sold Freeport McMoran at $17 right after the dividend cut.

Why the U.S. Recovery Will Lag

I am not privy to Mr Krugman's personal investment successes and/or failures but I would suspect that tenured professors are rarely the ones to seek out for ideas on outsized investment returns. I am sure Mr Krugman is extremely intelligent but I would trust Cramer more for investment ideas.


On Jun 05 02:27 PM Fighting Yoda wrote:

> Paul Krugman (on Bloomberg):
> “We have made the transition from sheer panic to chronic anxiety,”
> Krugman said, adding he’s has a “hard time” seeing what might drive
> a “full” economic recovery. “The euro zone, like the United States,
> I fear, could be facing kind of a lost decade,”

Another Sign of Recovery: SPY Breaks 200 Day MA

I take it you are still in cash.


On Jun 01 03:10 PM jeandit75 wrote:

> bull $hit

Gas Prices Not Expected to Come Down Before Year's End

with inventories here at decade highs I fail to see how a temporary 100M bpd production interruption spikes prices. Also, how many barrels a day has NOT been shipped because Kim Jong is feeling neglected and needs some attention? All this stuff does is spook traders to buy (or sell) for short term moves. What long traders need to beware of is a ticked off gasoline consumer who learned how to get by with less gasoline during the last price spike and is perfectly capable of repeating the exercise.

Oil: Reduced Drilling Activity May Explain Recent Price Increase

Another factor might be substantial production cutbacks by OPEC, particularly Saudi Arabia. Also, liquidity availability in global financial markets could contribute.

Sysco: My Favorite Stock

SYY has not 'run-up'. That is one of the points the author makes. It is selling at the lowest PE in decades, and no one is interested (or excited). If you want an indication of how SYY copes with higher fuel prices look at the past year. Diesel fuel more than doubled, then fell by 50%. The company has already faced this potential problem. People will not stop eating meals away from home. They will trade down the menu, perhaps go out less frequently, but they won't stop altogether. The slowdown is already priced in. A recovering economy and a more confident consumer is not. The stock will be well over 30 in a year and over 40 in two.


On May 05 02:18 PM nyoneway wrote:

> With some many beaten down stocks even after the recent run-up, I
> fail to see how a 12:1 forward PE seems that exciting. Inflation
> does not neccessarily translate to higher profits because consumers
> will adjust their spending by buying less and focus on lower cost
> items.
>
> Another factor is that fuel prices now are relatively low compare
> to the Summer of 2008, it'll be interesting to see how Sysco cope
> with the inevitable rise in fuel prices.

Sysco: Reasonable Price for a Dominant Company

And they will eat cold soup at home only so long. Friends and family becon at yon restaurant and we will go.


On Mar 25 08:52 PM REBEL wrote:

> Hey Chris B - Yes, the world economy could implode and make all stocks
> worthless. But people will eat 'til the end of time.

Marc Faber: 'It Will All End in Disaster'

Good old Marc. Buy but just remember its all going to hell later. You need me to tell you when. Just subscribe to my newsletter.

Bank Stocks Will Return to Prior Norms

Its still not too late sonny.


On Mar 24 11:06 AM Alex Filonov wrote:

> Jason, I have to congratulate you on BAC position. I was wrong and
> you were right. It's no small deal to get a double in less than a
> month.

Sysco: Reasonable Price for a Dominant Company

Discounts depend on volume. Greater volume to a restaurant reduces per unit supply costs. Its really a logistics game with several moving parts. According to a friend who works at one of Sysco's supply warehouses business is pretty flat but he also says restaurant traffic picks up almost immediately when the economy improves. Some call this an 'early cycle' business because it is so sensitive to economic changes.

Sysco is a good business for long term conservative equity investors. Volatility is lower than the market, it pays a consistent and growing dividend, earns a high return on equity capital (routinely around 30% according to Value Line), and dominates the markets it serves. The next time you eat at your favorite restaurant look around for what I call 'Sysco signs'. It may be a private lable box in or near the kitchen, the name on the individual sweetner packets on the table or the coffee supplies near the coffee maker. If it is an individually owned restaurant chances are they are supplied by Sysco.

Incidently Barrons Online (subscriber site) has a good writeup today that compliments the above article. One other thing pointed out in that article is Sysco's large business with schools, hospitals, military installations, nursing homes and cruise ship lines.