For a smart consumer play in 2008, Jeff Macke would trade a kingdom for a stock pick. We’re talking the Magic Kingdom.
With fears of a recession swirling as the housing market falls apart you may think you'd have to be “Goofy” to invest in a company that depends on consumers with cash to spend on fun. But, if brand loyalty is one of the investment ingredients, a wave of Mickey's magic wand may be able to turn those recession frowns upside down, says Jeff Macke.
Generation after generation, Disney builds new brands such as Cars and reinvents old ones including Pirates of the Carribean and Cinderella causing the whole family to grow and love Disney.
Then Disney really drives the message home by using the theme parks to literally bring you inside its TV and movie brands. The result is a powerful loyalty that should make Disney DVDs and vacations the last purchases Mom and Dad want to cut.
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Jeff Macke believes Disney stock will be 20% higher this time, next year. It’s not fast money he adds. It’s a long term investment.
Guy Adami and Pete Najarian agree.
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Trader disclosure: On Dec. 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (YHOO), (INTC); Najarian Owns (C), (CSCO), (MS), (MSFT), (BIIB); Najarian Owns (YHOO) Options; Najarian Owns (CSUN) Options; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD), (FLS); Finerman's Firm Owns (PLCE), (SKS), (VLO), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (SPY), (IWM), (SPG), (TCO); Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; NBC Universal Is The Parent Company Of CNBC