[wdwspider]

OK, I have some questions and I know many of you have Stock in Disney.

Currently Disney Stock is at $24. Compared to Pixar, Krispy Kreme, and even McDonald's this is low. Is that a good thing or a bad thing?

Second, does anyone know of a site that shows Stock Value over a period of time?

Third, I want to buy more than one stock (like two or three), should I still use Onestock.com?

Pixar stock is like $64, is that high?

Thanks, any other stock advice is welcome. I would like to buy one for my son's birthday and would like to get myself one also. If it's cheaper to buy them both at one time I will do so.

[mickey]

You can see a 5 year chart of Disney's stock price here:

Yahoo! finance for DIS

The price of a stock is relatively useless in comparing one stock to another. Berkshire Hathaway stock is selling right now for $88,300 per share, but the value of the company (market cap) is about 136 Billion, compared to Microsoft, whose stock is selling at $27 per share, but the market cap is 300 Billion. The stock price is just a function of the number of shares outstanding. A company could have 100 shares outstanding, so each share would be very costly, or they could have Billions of shares outstanding.

It is tough to measure the value of a share. You can look at PE (price per earnings), but that value should change with the industry, growth rate, etc.)

Microsoft PE: 34
Disney PE: 37
Pixar PE: 65

So, you can see that the market has valued Pixar's stock at 65 times it's earnings, which is a lot, though they have very good prospects. Disney should be something around 20 to 25, but their earnings have been low the last couple of quarters, so that number is a bet skewed. If you can find a company that has a low PE, but is growing quickly, you have a winner. You just don't want a company that is slowing down, but has a high PE.

I think the best way to purchase a stock over the long term is with dollar cost averaging. You can do that with a company called Sharebuilder.com. They allow you to buy stock on a weekly or monthly basis by automatic withdrawls from your checking account. So, you set the amount at $100 per month, and choose Disney stock. They pull out $100 per month, charge you $4 commission, and buy $96 worth of stock. They do that every month for you. That way you buy more shares per month when the stock is down, and less when the stock is high. I has been proven to be the best way to purchase stock over the long term. If you look around, I have seen specials where they give you $50 the first month, just for trying them out.

If you are just looking at purchasing one or two shares, use a company like Oneshare, and don't worry about the price. You are buying such a small amount that even if the stock tanked, you would only lose a couple of dollars.

[wdwspider]

That is very useful info and now you have me curious. So for every $96, they would buy me roughly 4 stocks in Disney.

When you set up something like this, how long do you have to participate?

One stock would cost me $109 (including the overpriced frame) so this peaks my interest much more. Not to mention it sounds like a potentially good investment if things go right soon.

From the five year chart it appears Disney stock is on the low side and shouldn't lose much more right now.

When you buy Bulk stock like this, do you still get a Paper copy to hang on the wall like with Onestock or is it all virtual?

Mickey, I can't think you enough for all your knowledge and answers you have given me throughout my DC lifespan. :D

I suppose when you set an account up you can do it like 401K and have a percentage of your money buying Pixar and a percentage buying Disney, right???

[mickey]

So for every $96, they would buy me roughly 4 stocks in Disney.

Today, you would get roughtly 4 shares, yes, though it changes daily.

When you set up something like this, how long do you have to participate?

Technically, you could participate just one month, though if you can fit it into your budget, it is a nice way to invest on a continuing basis. No reason you can't do it for 3 months, and then stop. You can always start up again.

When you buy Bulk stock like this, do you still get a Paper copy to hang on the wall like with Onestock or is it all virtual?

Nope, no paper stock at all. That is why OneShare exists, since you are buying something physical to hang up in our house or office, rather than really investing in the company.

I suppose when you set an account up you can do it like 401K and have a percentage of your money buying Pixar and a percentage buying Disney, right???

Yes, you can do that, though they charge you $4 per transaction per stock. So, if you have $50 go to Disney and $50 to Pixar, you end up paying $8 in commission.

[Dansharon5]

Do you know of a good website to buy stock?

[Mickey Maniac]

I use www.sharebuilder.com they have low rates, you can invest what you want and they reivest dividends for free.

They also run deals where if you refer a frend you get $25 and I think the friend may too

[Dopey]

This is really interesting stuff to a person who has absolutely no idea with stocks etc.
Thanks for the question spidey and thanks for the answers mickey!