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Comprehensive Analysis on Walt Disney and Time Warner: Intense Competition, Steady Returns

LONDON, January 22, 2013 /PRNewswire via COMTEX/ -- The Walt Disney Company DIS +1.10% recently sent ripples across the industry with its $4 billion purchase of LucasFilm. As the landscape in the Diversified Entertainment industry changes, StockCall published comprehensive technical analysis on Walt Disney Company and Time Warner Inc. TWX +1.15% . You can sign up now to access these free reports at http://www.stockcall.com/research

The acquisition offered Disney a chance to boost its position in the high-tech fantasy film area, which is already pretty strong after the billion dollar purchases of Marvel Entertainment and Pixar Animation. The entertainment sector is becoming increasingly competitive and resource-intensive. With big bucks involved, the sector is also likely to become the investors' choice for a high growth portfolio. Download your free report on Walt Disney now at http://www.StockCall.com/DIS012213.pdf

With more than $92 billion in market capitalization, Disney is a safe stock for investors looking for long-term investment. However, in the short-run, the company has to face increased competition and drain on its financial resources, thanks to its high profile acquisitions. Disney is not immune to the fundamental shift occurring in the entertainment sector. With the onslaught of On-Demand services like Netflix, the company is looking at a bleak scenario when it comes to deriving revenue from licensing and affiliate fees. However, if we look at Disney's acquisition model, it seems that the company is going to pay big attention to more lucrative and riskier fantasy movie sector. These acquisitions will help Disney produce movies based on established themes. This niche sector mainly caters to an established fan base and thus offers somewhat assured returns. However, although this does not mean that the sector is fool proof, Disney is more likely to make a hit out...