Article from MSN - June 7, 2005
Disney's new magic makes stock a bargain

Uncertainty has kept the price low, but Disney is accelerating its turnaround with TV hits, swelling crowds at theme parks and a pile of potential hits in the movie pipeline.

Investors may not have noticed, but the House of Mouse is back.

While the suits at Walt Disney spent the last year bickering over who will succeed chief Michael Eisner, the rest of us returned to the company's theme parks, loaded up on Disney DVDs and tuned in to popular ABC hit shows like "Desperate Housewives."

The net result: Disney (DIS, news, msgs) earnings were up 23% in the most recent quarter on 9% revenue growth -- in a turnaround that looks set to reward shareholders for several quarters to come.
Despite clear signs of a turnaround across Disney's divisions, more than a few in the investing world are worried about how incoming Chief Executive Robert Iger will do when he takes the reins from Eisner in September. They’re also concerned about the possible end of Disney's movie-making collaboration with the animation wizards at Pixar (PIXR, news, msgs) and the departure of creative talent at Miramax Films.

All this Goofy-ness means Disney shares are still cheap at around $27.40. So you have time to pick up shares for a move to the low- to mid-$30 range in a year -- for profits of 20% or more.

The reason: On a valuation basis, Disney trades near five-year lows and in line with other major diversified media companies.