Jump to content

Public Stock Options on Parks


Recommended Posts

I couldnt find a previous topic on stocks and companies, and I searched through 3 search pages....

If you have made the plunge into owning and trading stocks, do you keep any of the parks in your portfolio? Im thinking of making an investment into Disney for my son. Working through the company to make small payments each month and helping to build my son's portfolio. Disney seems like a solid investment and if anything, he will be able to say he owns (part of) Disney, well he will when he can talk.

So what are you stock stories of Park Ownership?

Current Market values:

FUN (Cedar Fair) : 49.99

DIS (Walt Disney Company) : 80.39

SIX (Six Flags Entertainment) : 40.10

BX (Blackstone Group ) : 29.20

Link to comment
Share on other sites

I have 20 shares in FUN that I bought several years ago.

I realized over the weekend that I have some cash sitting in my Fidelity account that came from several quarters of dividends that were paid from a utility company that I own, so I was seriously considering buying 10 shares or so of Disney. However, Disney stock is $80+ right now which is pretty high historically (their 52 week low is in the neighborhood of $60), so it seems a little expensive in comparison right now. I'm waiting for a down day in the market where it drops somewhere in the $70s before buying.

I also considered buying Sea World...their stock is somewhat depressed right now due to recent financial results (as well as the bad PR from "Blackfish"), so I thought it might be a good buying opportunity. I'm also considering Comcast...while it's being held back somewhat now by the planned Time-Warner Cable acquisition, I think eventually that deal will raise the value. (Not to mention all of the investments they're pouring into the Universal parks right now :-)

  • Like 1
Link to comment
Share on other sites

Do any of you buy directly or use a stock company?

Sent from my iPhone using Tapatalk

I use Fidelity, but that's only because I had gotten a stock grant and options from a former employer and they had set me up with a Fidelity account to manage the benefit. After I was fully vested (and eventually left the company), I just kept the Fidelity account.

I've found it really easy to use and move things around in the portfolio (although, I think "portfolio" is probably an overly generous description when talking about my limited investments <g>).

  • Like 1
Link to comment
Share on other sites

I was a former owner of FUN, bought around $13 a share a few years back, sold once it broke through $40

Also owned Disney that I bought around $23 a share and sold for a nice profit as well.

I held a few other leisure stocks that I have sold Great Wolf, Royal Caribbean to name a few.

I always approached buying stock as something to do for fun, own what I like, and I always bought when I thought they were low with the intention to hold them until they reached certain dollar amounts. Typically a long range plan.

But if you are investing for your son I would recommend at looking at a mutual fund or an age based fund of funds. Also you can set these up where there are tax benefits and tax savings. Taxes are a big issue when you just have a standard open stock account and they can eat in to the profits. Something else to consider is making monthly investments in your account, no matter if the market is up or down. As always I advise speaking with an individual that has the appropriate certifications and doesn't work for a bank. Sorry folks but bank employed investment reps make some of the biggest commissions in the industry as well as sell what they are told or incentivized to sell.

  • Like 3
Link to comment
Share on other sites

These days, very few companies let you buy stock directly through them unless it's in big chunks. You'll have to open a brokerage account to do so. Also, don't expect fancy glossy year end reports or stock holder events anymore. Disney used to host and send these regularly but haven't for quite some time. Also, stock certificates are rarely if ever issued anymore. Amusement park stocks won't make you rich, as their value doesn't really fluctuate all that much. Big congolmerates like Disney are a solid bet. Also remember that investing in the market should be a long term investmentg. Day traders rarely get rich anymore. For more specific stock-buying advice check out sites like the Motely Fool.

Link to comment
Share on other sites

Yea I had been reading about Disney more for the idea that its a nice stock that as he gets older he can understand what he "owns." Disney does let you buy directly from them but you need either 250$ down or $50/month. They do send out the stock certificate if you request one and will send reports on request. I figure its a nice start. I like the mutual fund idea as well, and will probably go that route for myself. When I was a kid, my grandpa got my sister and I one stock of P&G. Man that was cool, too bad I sold it to buy a car when I was younger and dumber...

Link to comment
Share on other sites

The best advice would be to not put all your eggs ($$$) into just one basket. The key word is to diversify and to invest in a combination of stocks or group of stocks and mutual funds. You are in it for the long term and remember this is not a Monopoly game. The money you lose is real and not is play money. If I am planning for my future, I would seek out a professional for their advice and what is best for me based on my goals. I would put the max into your 401k plan and if you have children or might, I would invest in a college fund soon after they are born.

Link to comment
Share on other sites

Actually I have spoke with a few professionals who say save for retirement versus the young ones college. There is federal help for college nt so much for retirement.

I was just wondering what people have done with park stocks. I have a 403b the wife has a 401k we may open a Roth as well but think this might be a fun opportunity that will grow with him. It won't be a bank buster in any way shape or form

Sent from my iPhone using Tapatalk

Link to comment
Share on other sites

In today's Money section of the USA Today, there is a short column on the values of buying Disney stock. The expert opioned that with the recent uptick in park ticket prices, it's clear that the parks are about to regain the lead as the big money maker for Disney. Still, he tempered that by saying that most Wall St. anaylysts have rated the stock as a neutral buy. Like others have said, it's a good solid buy for the long haul (esp if the Lucas and Marvel acquisitions deliver long term).

  • Like 1
Link to comment
Share on other sites

A few thoughts, you used to be able to purchase a share of disney that could come with a stock certificate that you could frame to mount on a child's wall in their bedroom. My sister and I did this for our twin nephew/niece for their 1st birthday, they are now 12, so don't know if that program is still available. I think the certificate actually came framed, but its been a while. That could be one thing to look into. I don't know specificially about Disney, but many large companies offer a DRIP (dividend re-investment plan) which requires you to send them money to purchase your initial share(s) of stock then automatically reinvest all dividends back into the company's stock. DRIP plans differ from one company to another, but I'd be shocked if Disney didn't offer one, you can likely find that info on their investor relation page.

As for the cost of Disney stock, pay less attention to the price of the stock, and more to their P/E (price to earnings ratio) compared to historical records. While the stock may be trading near its 52 week high, that doesn't neccessarilly mean its trading near its all time high, or at the higher end of of P/E ratio (ie the companies earnings could have outpaced their share price over the last couple of years, I don't know specifically about Disney, I'd venture that their current 52 week high is also close or at their all time high, but that is just a guess based upon the companies history). Also keep in mind, when you are buying Disney, you are also buying into ESPN/ABC (amongst other things), which is another thing your son may relate to well as he grows up. It wouldn't surprise me if ESPN was eventually spun off into its on seperate company.

The glossy reports are not dead, at least not year. Warren Buffet sent me one about a month ago which I need to get around to reading (although Berkshire's annual report has never been particularly glossy), I've also recieved them from LVLT and TAXI w/n the last month, so they are still floating around.

KI-org-employee touches on investing in your 401(k) to the max first, but I'd caution that to definently invest up the maximum that your company will match (if at all) then anything beyond that look into the benefits of a Roth vs the 401(k). In theory (ie unless congress changes the rules) you pay taxes upfront in a Roth, you pay the taxes on your 401(k) when you take the money out later in life. Depending on where you are financially and where you expect to be during retirement, it may be better to pay the taxes today (when you know what the tax rates are) than in the future when you can only speculate on what the tax rates (as well as your income during retiremtent) may be.

Hydra, its in your best interest to see what your money is going towards. I know one of the fears is being made "to look stupid" in front of your HR person, but I'd put the shame aside and investigate. It depends on where you work and your plan, but one note of caution are the people who had their life savings tied up in the company they worked for, in this case ENRON, only to see the company collapse under corrupt management and see their savings dissapear. I don't know where you work, but I'll use P&G as an example of a company where many employees buy P&G stock thru their retirement plan. P&G is likely going to continue to be a well run company for a long time, but there is no garuntee, so make sure you've got more in your retirement than just the company you work for. As mentioned above, you need to diversify yourself no matter how good that 1 company may be. You don't have to know the inside/out of your retirement plan, but having a general feeling for what you are invested in will serve you over the long term.

I read a book by Peter Lynch many years ago. One of the things he talked about was investing in what you know, the consumer is often going to spot the smaller company poised to grow before wall street catches on based upon their own personal experiences. When McDonald's spun off Chipotle, I considered purchasing stock, my wife mentioned it a couple of times, but at the time, that $43 stock price looked a little high, if it fell into the low to mid $30s I would have picked up 20 or so shares. At the time, Chipotle was still fairly small and not overly saturated with plenty of room to grow. Had I thrown the $1000 at it then and just planned to purchase more if/when it fell to the price I liked, I'd be sitting on over $11,000 today as it approaches $500 a share. There are many Chipotle type companies sitting around, if you can find them, make a small investment, pay attention and buy some more down the road as the "story improves".

I've thought of buying Cedar Fair for a while, mainly as a dividend stock. Kept waiting for it to fall back a bit, it has yet to fall back "a bit" under Oimet's leadership. I really like what he brings to the table and the 6% dividend would have been nice (not 5.6%).

  • Like 5
Link to comment
Share on other sites

Look at you adults just adulting all over the place

Best advice I could give anyone regarding stocks, start early, as soon as you start making money (even from a summer job as a kid). The single best thing a younger person has is time. The "magic" of compounding interest can easily make you a millionair in retirement with little effort (money) invested up front provided that you start young enough.

http://www.getrichslowly.org/blog/2008/04/02/the-extraordinary-power-of-compound-interest/

one of many examples around the web.

Link to comment
Share on other sites

  • 2 weeks later...

Not sure if anyone noticed, but Apple quietly executed a 7-1 stock split earlier this week, so those looking to invest in Apple should now be able to do so at a much more reasonable price point.

  • Like 3
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...