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Cramer’s Disney Interview: Buy, buy Iger?

Monday, 23 Sep 2013 | 6:26 PM ET
Iger CEO: We are not going to hoard cash
Monday, 23 Sep 2013 | 6:25 PM ET
The Walt Disney Company CEO Bob Iger speaks about its varying properties ESPN, Pixar, Marvel and Lucas Film, as well as the success of Hong Kong and Tokyo's theme parks. "We are building a theme park in Shanghai," he says.

(Click for video linked to a searchable transcript of this Mad Money segment)

Up 30% ytd, can even the best CEO drive shares of a mature company like Disney much higher?

There are many skeptics in the market, with Morgan Stanley counted among their ranks. In a note released last week analyst Benjamin Swinburne downgraded Disney from Overweight to Equal-weight rating and lowered the price target to $70.

Largely the analyst suggested Disney may not have the "ability to deliver earnings and returns beyond what is already (priced into) shares."

For Disney nay-sayers Cramer has a simple one sentence response. "I think you're nuts!"

Bob Iger, chairman and CEO of the Walt Disney Company
Adam Jeffery | CNBC
Bob Iger, chairman and CEO of the Walt Disney Company

Cramer sees a slew of catalysts for this stock.

During an interview on Mad Money, Disney CEO Bob Iger suggested that Disney is well positioned to exploit the proliferation of new media.

"I can see in the near future the Walt Disney company creating new products for some of these new platforms directly. Actually using our creative capabilities and our brands to do just that."

Also, "the company's got sequel-friendly film franchises," Cramer added. And, "It's an incredibly well-run company with phenomenal cable properties like ESPN."

In addition, Cramer believes the newly acquired Lucasfilm which is expected to release a new Star Wars movie in 2015 is also a major tailwind.

Those catalysts alone would be bullish but Cramer says there's more. Much more.

"The company told us that it's significantly upping its buyback in the near future to somewhere in the range of $6 to $8 billion—that's meaningful even for a colossus like Disney.

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However, if the stock is all about future growth, perhaps nothing is more constructive for shareholders than Disney's decision to open a theme park in Shanghai.

During an interview on Mad Money, CEO Bob Iger told Cramer that Disney Shanghai could be huge.

"Taking that great theme park experience to the most populous country in the world; that's extraordinary for the company." Iger said.

"It presents opportunity for Disney not just when the park opens in 2015 but for a long time to come. I can't think of an opportunity that I'm more excited about."

The Mad Money host is excited too.

Whether it's the film business, the TV business, the theme park business or the buybacks, "Disney has catalysts as far as the eye can see," Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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