Eisner Buys 10 Million in Stocks...

[Josh]

Just noticed on CBS Market Watch that Eisner purchased $10 million in Disney stock on Wednesday.

Can we assume that's a show of CEO confidence that he can put things back together again?

Or is it another kind of "show" altogether?

Josh

 

[wdw4us2]

I don't think it's a show of confidence.

Maybe he's realized that after he's out of the picture, the stock will go up again and he'll make a pile of money.

After all, he's got to find something to spend the $737 million he's made at Disney the past few years.

Lisa

 

[raidermatt]

Certainly the hope is it will be viewed as a sign of confidence.

I think it illustrates how critical the stock price is to Eisner's future.

I'm just not sure whether to view this as a bold CEO who is sure of himself and his company's future, or if its just a sign of desparation from a CEO whose job is on the line...

 

[Luv2Roam]

My first thought was the buy is to gain more power within the company. (More footing?) That, and it's cheap now.

 

[treesinger]

This quote comes courtesy of the DIS's own news section.

Chief executive Michael Eisner said Disney already required non-employee board members to own a minimum of $100,000 in company stock and has increased the responsibilities of several board committees.

My guess is Eisner wants to set an example for the stockholders and the board that he's committed to turning it around, and he wants them to have confidence too.

So you know what, I'm getting into Car 1 on this one!!

 

[manning]

That makes Eisner the third largest stock holder behind the Bass bros and Roy Disney. He now owns 13.99 million shares and .7% total shares. I think Roy owns a little over 17 million.

I believe neitner one can control the company alone. They would need the help of institutional holders and/or individual(s) willing to buy large number of shares, like the Bass Bros.

Many individual shareholders don't bother to vote or exercise their proxies. Those unexercised proxies are then automatically controlled by the board to vote any way they wish. I alway VOTE mine. It's easy, It can be done over the internet.

 

[Galahad]

It may be a show of confidence mixed with a little despiration. He knows he's in trouble and the perception of the company is in trouble. While I have no problem with the notion that Eisner has been less that competent, that his personality flaws have hurt the company and so on, I just can't see the Eisner-as-evil picture. Isn't it enough that he is doing a bad job? Does he have to be the devil himself too?

 

[Mop]

And all this time we thought Eisner had no idea what he was doing. He's a genius! Drive down the price of the stock, then buy it at bargain basement prices! Become one of the top three owners of stock and get leverage to muscle the other board members. Now he can stop pretending he has his head up his a$$, fire Pressler, and drive the stock price into the stratosphere.

Of course, that would actually require some kind of foresight and is probably all highly illegal.

Raul/Mop

 

[KNWVIKING]

.... but by end of trading on friday he had madejust under $1.4m in about 24 hrs. Not a bad days work.

 

[Captain Crook]

To $16.65, well off the lows, so it looks like Eisner's move instilled confidence in somebody...

 

[Sarangel]

Given the current wrangling on the Board, Eisner has to be consolidating his position. He wants Roy and Stanley Gold off the board, from what I hear. As for this:

That makes Eisner the third largest stock holder behind the Bass bros and Roy Disney. He now owns 13.99 million shares and .7% total shares. I think Roy owns a little over 17 million.

I don't know about the correctness of this statement, except as regards the Bass Brothers. Neither of them hold Disney stock any longer. They both got out several years ago.

Sarangel

 

[Luv2Roam]

Sarangel -- Thanks. I thought Bass Bro had sold off thier shares too. I wasn't certain, but thought that was the case. Same for Warren Buffet, here in Omaha. I think he sold off his Disney stocks around three years ago.

 

[raidermatt]

One of the articles did site the Bass brothers as still being one of the top two shareholders. Unfortunately, I don't remember which article it was that said this.

Either they kept a small (relatively speaking) portion of their stock, or the article is incorrect.

 

[Captain Crook]

According to an article issued by Reuters, Roy owns 17+ million shares, Eisner 13.99 million & the Bass brothers somewhere in between...

 

[hopemax]

I looked at a couple of articles from when the Bass family sold last September, and they didn't sell all of their Disney stock and still had a "significant stake" in Disney.

 

[GeorgeG]

Ol' Mike has never been stupid when it comes to making money for himself. The stock is so low that even a very modest turnaround would double it's value and that would get him an easy $10 million.

I doubt he drove the stock into the ground on purpose (I think that would be illegal), but as long as it's there and with the handwriting on the wall that somebody more competent might be waiting in the wings, it's the smart thing to do. After all, his buy-out will only be worth $24 million, so he'll need a few extra bucks so he won't have to stay at Pop Century (sorry, I couldn't resist that).

With that said, any of us who has some spare change (doesn't need to be $10 million) should be buying as much Disney stock as possible since it will certainly go back up. In spite of Mike, Disney is a solid company that will not go away. A decent recovery will get you 3-4 times your investment. A really good recovery will get it to $120 per share, where it was the last time it split (3 ways).

 

[Yup I'm Goofy]

I am pretty sure that Eisner second only to Roy in ownership, according to Dow Jones News Service. No matter neither has enough to control the board by himself.

Large institutional investors will look at who will do the best in the future, in a thriving economy. For better or for worse, I wont give my opinion, Eisner did a great job when the economy was thriving. Kind of like the Pres of the US, if the economy is good he is popular, if it is bad he is the devil.

He has made some bad decisions, in hindsight, but if not for one ill fated heliocopter flight I think he would still be thriving, IMHO

 

[manning]

If you think a company is not going into bankruptcy, then follow the age old advice. "Buy on the bad news, sell on the good news".