Hostile take over at Disney ...

Disney under the leadership of Bob Iger is really not doing well. 

While it did well in the early stage of Bob Iger's leadership, it began to deteriorate since the end of Marvel Universe movie Avengers: End Game. 

It seems to me that this movie marks the beginning to the end of his leadership. It is not surprising as Disney has already started to introduce the diversity ideology into its movie messages. Instead of entertainment and fun, audiences are introduced to sexual content of paraphilic nature as well as feminist nature. 

We began to see movies including the need to highlight women are better than men, women are strong and independent, and it is the men who pull them back, in another word, the evil patriarchy is why women are not succeeding. 

In addition, it also brings in the idea that white people are the result of the sufferings of the non-white, attempting to pitch the non-white against the whites.

The new movies after Avengers End Game also have an increase emphasis on homosexual relationship, attempting to normalize homosexuality. 

 Its implementation is not limited to only Marvel universe, but every other production under its wing, such as Lucas Film and the Princess series.

Naturally its implementation fails to gain acceptance by its audience. Not only its movies fail to profit, but its theme parks are also losing visitors. 

What is the direction of Bob Iger? To increase intensity in its diversity drive.

It is no wonder that the shareholders became unhappy. News began to spread recently of Billionaire investor Nelson Peltz demanded Disney to allow an increase level of influence from his team, that is, appointing his team member as board of director. 

Disney under Bob reacted negatively. 

As such, there is possibility of hostile takeover by Nelson Peltz unless Disney refocus on profitability in its strategy. 

"As these developments unfold, Disney's stock has become a volatile indicator of market sentiment, reflecting the uncertainty surrounding the company's future." (Quoted from SK Pop)

Fig 1. Disney weekly chart

The only thing that I wonder is, " why it takes so long for the shareholders to finally act?"

Looking at the chart, Disney fell from its top of 203.02 on 7th March 2021 to a bottom of 78.73 on 1st October 2023. If it because that only at this point of time the stock price of Disney is finally affordable?

I believe that Disney is at market bottom at this moment with limited downside. 

It rised from its latest bottom and presently retesting its 55-week moving average. While retracted, it seems to refuse to continue downward, supported by its 8-week moving average. 

Disney is at an uncertain position right now, there is a tendency of down slide but with limited range. The general direction should be up.

There are 2 levels to increase the certainty that its position is reversed: 103.91 and 118.18. 

There is also a projection measurement with resistance level between 99.81 to 112.84. These coincide with both 89 and 144-week moving averages.

Note:

One thing that I failed to mention in the article is the support for my view that Disney is at its bottom. This is my second attempt to write this entry, there are a lot to cover, and I went off course on my first attempt.  

There are 2 observations to support the bottoming out of Disney. 

First is the slope of ascension and decline. Its ascension is steep while it took a long while for Disney to reach its latest low, forming a very gentle slope.

Second is the divergence of its MACD. It is interesting to see that for every new low, the low of its MACD went higher. While lower highs resulted in higher high in MACD. This has been happening since mid 2022.

Probably the only thing it needs to rise further is confirmation of Disney making 180 degree U-turn on its direction.