A few years back our FusionIQ software had The Walt Disney Co. (DIS) highly ranked and subsequently shares rose very aggressively. At the time analyst coverage was very neutral about the prospect for shares. However the analysts turned out to be wrong and FusionIQ with its unbiased assessment turned out to be a much better prognosticator. Again in November of 2007 FusionIQ turned out to be a solid forecaster, with Disney shares not far from its peak, its' FusionIQ ranking score started to drop to bearish levels (below 70). And indeed it turned out to be a fortuitous warning as shares subsequently plummeted over the coming months.
This weekends edition of Barron's wrote a glowing story entitled " The Magic is Back " about Walt Disney and its prospects for the future. That said we decided to run Disney through FusionIQ to see what its unbiased opinion was. As seen in the attached chart, Disney's FusionIQ Master ranking is only a 58 out of a possible 100. The moral of this story ? Maybe there is some magic left in the kingdom but at this point with only a 58 ranking it is still a bit early to believe the magic is back for good !!
The best plan of attack if one wants to invest in Disney shares is to wait for its FusionIQ rank to move back into bullish mode again by seeing its ranking score move back over 70 again. FusionIQ users can track these changes very easily by setting email alerts based on ranking changes.