Dear Disney (DIS): Keep Being Shameless

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Yet another reason to love Walt Disney Co (NYSE:DIS) stock: Shamelessness.

I watch a lot of TV with my kids. Many of the shows they watch happen to be owned by Disney, which makes sense seeing how the channels are named “Disney XD,” “Disney Channel” and “Disney Junior.”

Dear Disney (DIS): Keep Being ShamelessNow, I’ve noticed that DIS has no compunction about dropping in as much synergy with its other entertainment products every chance it gets.

Disney animated Jessie and dropped her into a Marvel cartoon episode. Phineas and Ferb did a Star Wars crossover where all the characters took on subsidiary roles whose plots took place right alongside the plot of the original Star Wars. DIS has added Star Wars Rebels, which is my eldest child’s favorite show, Marvel’s Avengers Assemble, Marvel’s Hulk Smash, Marvel’s Ultimate Spider-Man Web-Warriors, and every commercial break there’s some interstitial behind-the-scenes of one of Disney’s latest movies.

Just last week, DIS reissued the original Star Wars films for HD digital download and streaming. That’s the original, folks — not the unaltered “improved” versions that George Lucas issued where stupid stuff happens like Greedo shooting first.

These are the versions fans have been clamoring about forever, but that Lucas refused to release on DVD. Except Lucas got bought out lock, DIS stock, and barrel and DIS stock is now milking Star Wars for everything it’s worth.

As a shareholder, I say, keep being shameless.

Disney Stock Will Keep Running as Disney Keeps Promoting

Shameless makes money. Shameless improves profits. Shameless means my stock becomes worth more. Is that cynical? I don’t care. As Kevin O’Leary says on ABC’s Shark Tank, “I just want to make monnnneyyyyy.” (By the way, ABC is owned by DIS stock. Shameless of me to promote the show, I know).

In fact, here’s more shamelessness. On Thursday, the studio hosted its Star Wars Celebration Convention in Anaheim, just a stone’s throw from Disneyland. There, DIS led with the newest Star Wars trailer.

For investors in DIS stock, this isn’t just sizzle. The reason Disney is the premier vertically intergrated entertainment conglomerate in the world always comes down to the same thing: the content is exceptional. From kids TV to sports to movies to animation, DIS stock has succeeded because DIS content has succeeded. It always comes down to great stories, regardless of medium.

Don’t believe me? Disney stock popped after the trailer was released.

That’s exactly why DIS was so smart to spend billions to acquire Pixar, Marvel and LucasFilm. With the exception of George Lucas’ last awful Star Wars trilogy, these studios have consistently produced three- and four-star movies that have consistently delivered at the box office and all ancillary markets.

I don’t care if every Disney movie has a cuddly cute sidekick like Olaf in Frozen. If they serve the story, I’m not complaining. (OK. Olaf wasn’t critical to the storyline, although his childish notion of unconditional love did buttress the film’s theme.)

Bottom Line

Look, the point is that everyone at these three studios, along with DIS and its marketing genius, is firing on all creative cylinders. I trust J.J. Abrams to deliver on the new film, and Rian Johnson to deliver on the next. I trust the creative teams behind the TV shows, because even I watch Star Wars Rebels.

So please, Disney, keep being shameless. DIS stock holders are cheering you on.

Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance. He is the manager of the forthcoming Liberty Portfolio, has 20 years’ worth of experience in the stock market and has written more than 1,200 articles on investing. As of this writing, he was long DIS. He can be reached at TheLibertyPortfolio@gmail.com.

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