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Disney's Not For Faint of Heart

Despite a dismal fiscal fourth quarter and dim prospects, The Walt Disney Co. retained a "buy" rating from Williams Capital Group analyst Sobani Warner last week. But she remained cautious about the entertainment giant's near-term future. Warner has slashed 2002 revenue and cash-flow estimates for Disney by 27 percent in the past two months. While fourth-quarter results were disappointing, she added, they could have been worse. Theme-park and media-network results exceeded her lowered forecasts, thus signaling that the company may be poised for a modest second-half rebound. "If one thinks the world is about to spiral further into recession, Disney is not the place to be," Warner wrote. "However, if one does not believe this, Disney likely has more good news on the horizon than looming bad news."