The Walt Disney Company (DIS): Two Strikes for This Movie Giant

Loeb’s interest highlights the value hidden underneath Sony Corporation (ADR) (NYSE:SNE)’s flagging electronics division. While Sony was once the “it” brand, it’s now an also-ran. The company turned a tiny profit in its just ended fiscal year after posting four straight years of losses. Electronics were the main reason. It might take some time for the company to right that ship, but it’s working diligently and the media arm is helping fund the effort.

With the PlayStation 4 set for release latter this year, Sony Corporation (ADR) (NYSE:SNE) has a chance to show off its technology chops. If sales go well, it could silence Loeb. And with brands like Spider-Man, King of Queens, and the Client List in its media coffers, the top and bottom lines could really take off if sales turn in electronics. The tiny fiscal 2013 profit leaves the company with an unrealistic over-50 PE, but the story here isn’t valuation its turnaround potential.

No Strike Out

At the end of the day, The Walt Disney Company (NYSE:DIS) will keep taking swings and get hits more often than strikes. So The Lone Ranger miss isn’t leading up to a strike out. In fact, the company is still among the best in the business and should be on media investors’ buy lists. If Disney is too pricey, though, Sony Corporation (ADR) (NYSE:SNE) could be a good diversified turnaround play for those with some patience.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Walt Disney (NYSE:DIS). The Motley Fool owns shares of Walt Disney.

The article Two Strikes for This Movie Giant originally appeared on Fool.com.

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