2016-08-11 14:34:51

The Walt Disney Company, #DIS [NYSE]
Services, Entertainments, USA

Financial performance of the company:

Index – DJIA, S&P 500; Beta – 1.40;
Capitalization – 151.56 В; Return on asset - 9.60%;
Income - 8.38 B; Average volume – 10.31 М;
P/E - 18.37; ATR – 2.67.

Analytical review:

  • ​The company ranks the first on capitalization in the sector of “Entertainments” among the issuers traded in the American stock market;
  • The Walt Disney issued positive report for Q3 of the fiscal year 2016 on Tuesday, on 9 August. During yesterday’s trading session the price of company’s stocks has grown by 1.2%. It is expected that company’s quotes will continue to rise;
  • According to press-release company’s revenue has grown by 9% and amounted to 14.277 billion USD against the forecast of 14.167 billion USD. Net profit of the company has grown to 2.597 billion USD against 2.483 billion USD for the same period a year ago. EPS (earnings per share) amounted to 1.62 USD against the forecast of 1.61 USD;
  • On a press-conference company’s management stated that the improvements have been reached due to positive dynamics of the main divisions and the release of the film "First avenger: Confrontation", "the Book of Jungle" and "Find Dory". Fees for the distribution of these pictures amounted to 1.15 billion USD, 941 million USD and 871 million USD, respectively;
  • In the reporting period, Walt Disney has acquired 33% of the shares of “BAMTech” company, which deals with the technology of online broadcasting. The company also generated 2.489 billion USD of free funds, which is by 51% more than for the same period a year ago. The company intends to continue investments into the company’s divisions with good prospects;
  • In Q3 of this fiscal year The Walt Disney has repurchased stocks for 1.5 billion USD, which shows positive plans for future of the company’s management

Summary:

  • Company’s report for Q3 of the fiscal year 2016 showed high efficiency of the company’s management. Revenue and net profit of the company have increased, exceeding market expectations. The Walt Disney has strong growth potential.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of The Walt Disney Company

Key levels:
Support levels: 97.45 USD, 96.10 USD and 94.75 USD.
Resistance levels: 99.25 USD and 100.60 USD.

Medium-term trading, Н1
At the moment the issuer is traded at the support level of 97.45 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 99.20 USD, 100.50 USD and 102.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1


Short-term trading М15
At the moment, the issuer is traded between the local support and resistance levels of 97.50/98.40 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading М15
Short-term trading М15