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Disney Makes the Magic Happen

David Becker
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Disney is continuing to make the magic happen with content that consumer continue to demand. Walt Disney Co (NYSE:DIS) operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive.

The stock price has been moving higher after the company reported better than expected first quarter results, with all divisions except ABC performing ahead of Wall Street estimates. EPS of $1.04 exceeded street consensus of 91 cents with over half the beat coming from operating factors.

The 52-week range of DIS is $ 53.41 – $77.06, and the stock hit a 52-week high on Monday. Earnings were up a robust 32% quarter over quarter, and the three year growth rate of earnings increased by 17%. Sales increased by 9% quarter over quarter and the three-year growth rate of sales was up 5%. The dividend yield on the stock is 1.1%, and the profit margin is a solid 22.1%.

There have been insider purchases of the stock which should give investors’ confidence. Robert Iger the CEO and Chairman of the company purchased nearly 166K shares of the company stock on January 26, 2014 for a total value of approximately 12 million dollars. James Rasulo purchased 60K shares of the stock on January 28, 2014 for total proceeds of 4.4 million dollars.

The stock price moved higher hitting a new 52-week high, which is considered a breakout. Momentum is strong with the MACD (moving average convergence divergence) index generating a buy signal. This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal.

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