Thomas Staggs, Chief Financial Officer of Walt Disney announced a bit of sad news for all lovers of the Mouse and theme parks today. Staggs confirmed that there were no plans by the company to develop another major theme park in the United States in the "foreseeable future." Speaking at the Merrill Lynch Media Fall conference in New York, Staggs said the creation of such a park was not yet a top priority for the company. So, if the company's not planning new theme parks, what are they up to?
Hopefully, they are busy fixing the rides they do have. On Saturday, Hong Kong Disneyland shut its Autopia driving ride after one of its vehicles derailed from a fixed track. Park spokeswoman Glendy Chu said the accident occurred when the driver, a young woman, hit one of the barricades surrounding the track. She said the woman was not injured. Government spokesman Raymond Wong said government investigators have not reported back their findings from the inspection of the ride.
Hong Kong Disneyland, which is a joint venture between the Hong Kong government and DIS, opened in September 2005 and the Autopia ride opened in the summer of 2006.
The stock finished the session down 0.54% today as it remains trapped in a sideways channel along support in the 33 area. The stock is moving into support at its ascending 80-week moving average, which it has not closed a week below since February 2006. The equity is also resting between resistance at its 10-month moving average and support at its 20-month trendline.
Overall, options players remain rather skeptical of the House of Mouse. Schaeffer's put/call open interest ratio rests at 0.66, which is higher than 70% of all those taken during the past 52 weeks. Meanwhile, the stock's short-interest ratio rests at a respectable 3.5, indicating that the equity could benefit from some short-covering support.