May 2022 Disney (DIS) Stock Pick and Knob Creek Whiskey Pairing

May 2022

Authors: Allan Maule, Byron Harrel

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Website: https://thewaltdisneycompany.com/

Twitter: @Disney

CEO: Robert A. Chapek

Founder: Walt Disney

Market Cap at Time of Article: 204.45B. In these difficult investing times, this is the right moment to look at larger and established companies like DIS.

Current Analyst Recommendations (31 analysts' price targets median): $183.50, so at Disney’s current price of ~$112, this is an easy Buy recommendation.

Revenue: Increased 34% to $4.7B in Q1 2022, with a net income of $29 million. These are excellent numbers for such an established company, and we’re optimistic that Q2 2022 will show more success.

Insiders: 0.13% insider ownership. Not inspiring by our normal standards, but because DIS is a large and nearly 100-year-old company we can look past this uninspiring number for other reasons to invest.

What makes Disney worth your hard-earned money for the next decade or more?
The House of Mouse needs little introduction as a company, as they’ve entertained children and families for generations with a gigantic presence in about every media sector you can name. Everyone knows about Disney’s name-brand cartoons, toys, and theme parks, but the sheer scope of this entertainment monolith’s assets is hard to grasp. Disney owns ESPN. Disney owns Star Wars. Disney owns Marvel, Fox, and Pixar. Disney’s vast portfolio of IP contains countless popular stories that have delivered decades worth of profitable entertainment—and continue to do so on Disney+ and other streaming platforms.

Size isn’t everything, but to get this kind of widespread and proven entertainment content alongside a long record of excellent creative management at today’s price of ~$112 is a ridiculous bargain.

Why talk about Disney to all your friends and family?
Think about how essential Disney+ became to families across the world during the pandemic. Whether it was kids streaming Frozen for the 18th time, families watching The Mandalorian together, or dads catching up on Loki after everyone went to bed, Disney+ has become a force in the streaming business since it launched in Nov 2019. And as Netflix keeps raising its prices (and shedding customers) and other streaming services flounder (CNN+, we hardly knew you), Disney+ offers one of the most impressive family-friendly content libraries for a mere $80 a year.

Now consider how many families are flocking back to Disney’s parks across the world now that Covid restrictions are relaxed in most places. There is serious pent-up demand from consumers with a lot of pandemic savings in their pockets, as Disney CFO Christine McCarthy said guests are spending 40% more than they were in 2019 before Covid. In short, family-friendly entertainment will always have the potential for profit—and who better to trust in that industry than the company with a nearly-century-long track record?

How is this company disruptive? Disruptive probably isn’t the first word you’d choose for Disney, but in tough markets, it’s sometimes better to be consistent than game-changing. Our world is filled with forgettable stories, but Disney has differentiated and captured audiences of all ages since 1923. As the market becomes tougher for upstart players seeking to take on the giants of different industries, you could do a lot worse than investing in this undervalued heavyweight of entertainment.

Conclusion:

Disney is a proven performer of a stock that belongs in essentially any portfolio, but it’s especially easy to recommend at today’s price. After most of our favorite companies have suffered significant losses in value, Disney should be a great home for your investing dollars as we steer out of this bear market.

Whiskey pairing: Knob Creek
Retail: $30 – $40 Proof: 100

The Reflection – A Walk by the Creek

It’s funny how your perspective on things, like Disney, changes over the years. When I was a teen, I remember seeing a toddler with a restraint that was tied by a rope held by the parent and feeling disgusted. It was inhumane to put people in chains, I thought. Years later, I had a little one of my own and was reintroduced to the child leash. Brilliant.

After playing my part with two daughters that share around 50% of my genetics, I came to the conclusion I had done enough procreation for my lifetime. My latest and final wife never birthed any children of her own, nor wanted to. I thought I had struck gold: To land a gal that doesn’t have kids doesn’t want kids, and doesn’t mind that I have two kids has been one of the bigger wins in my life. However, while she has no intentions of being the mother of humans, she does dream of being a mother to all the animals on the earth. I now am a proud father of two teenage girls, two male mutts, and two feline fellas.

Teenage girls are tricky, but I have clear communication with my dog sons. The vet says their ribs should show a little, or they could be getting overweight. This is why I let them know when they are looking fat and chunky. If they do something stupid, I laugh and make fun of them. They don’t mind and their tails continue to wag. The words may have been hurtful to people, but they are said in a very positive and loving tone, which is all that matters to a pair of perfect dogs.

The girls tend to talk a lot and are unimpressed with me. My boys lose their minds when I return from the neighbor’s house and always want to do what I want to do. The teens don’t like whiskey and have no interest in my romance with the spirits. The guys want to sit by my feet and watch me drink while describing every detail. So I took them for a magical walk by the creek and provided them with some fatherly insight about this month’s whiskey.

The Nose, Pallet, and Finish

It made me think of the Kentucky Derby coming up in May. I wanted to be in the woods sipping it. There is a sweetness of caramel and vanilla mixed in with oakiness. It finishes with a bit of rye spice.

During these tough times for investors, it’s especially nice to have whiskies like The Knob Creek 9 that offer good quality at a fair price point. I really don’t discriminate against whiskey, which has made me a bit soft in my ratings at times. Knob Creek 9 falls right at my midpoint. It’s good, not great, but does entice me to sample some other choices Knob Creek may have to offer. I’ve heard the 60% barrel-proof bottle is a real winner.

Score – 3/5