Shanghai Disney set to open: what it means for the stock

Magic Kingdom meets Middle Kingdom

Mickey Mouse is heading East.

Shanghai Disney Resort is set to open on June 16th after more than five years of construction.

The $5.5 billion park is the first of its kind. Rather than have the familiar "lands" of Disney World, the resort will instead focus on Disney franchises and movies like Pirates of the Caribbean and Tim Burton's Alice in Wonderland.

The park's completion comes during a time of uncertainty for the Mouse House. Succession fears have plagued the company since Bob Iger's heir apparent Thomas Staggs stepped down in April, and slowing subscriber growth at ESPN continues to weigh on the company's bottom line.

On the "Halftime Report" the desk debated whether Disney's pullback creates a buying opportunity -- or if there are further woes ahead.

"ESPN concerns are way overblown" -Pete Najarian

Steve Weiss has a hold on Disney for now because while he believes in the company's management team, he thinks ESPN and cord-cutting issues could further pressure the stock.

"You don't bet against smart people and great CEOs like Bob Iger...however, under the covers...you still have ESPN issues, ABC issues, and cutting the cord," Weiss said on the "Halftime Report".

Bob Iger's successor will have big shoes to fill--the stock is up 260% since he took over in March of 2005. Iger's one-time heir apparent Thomas Staggs announced his intended departure from the company earlier this year, which means investors have no clear idea of who will take the reins.


Jon Najarian isn't buying the stock until the succession plan is clear.

"Until we know who that person is that the board will support...it's something that will introduce more volatility into an otherwise great stock," Najarian argued.


Disney shares are down 7% year-to-date and Pete Najarian, who owns the name, thinks the pullback presents an attractive buying opportunity.

"Whenever we've gotten beneath $100, I think it's been a buy, and I continue to think it's a buy, and I think the ESPN thing continues to be way overblown," Najarian said.


On the other hand, Joe Terranova isn't jumping in just yet, and certainly not until next quarter's report. He noted that "the last quarterly report was the first EPS miss in 19 quarters," so he will be watching next quarter's revenue breakdown carefully.

Trader disclosure: On June 9, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Joe Terranova: Long BLK, DPZ, FB, IWM, NXPI, ORCL, PNC, VIRT, VRTS

Steve Weiss: Long AAL, AGN, ATVI, BAC, CVC, DAL, ENDP, HZNP, NGL, SRPT, VXX

Jon Najarian: Long PEP. Long calls BURL, FB, GDX,GLD, HPE, MO, MSFT, RTN, WFM, WFT, YHOO. Long puts: EWZ

Pete Najarian: Long AAPL, BAC, BMY, CSCO, DIS, DISCA, GE, KMI, KMI.A, KO, LUX, MRK, PEP, PFE, SAVE, VIAB, ZIOP. Long calls: AAL, ABBV, AKS, AMJ, BAC, C, CHK, CSCO, CSX, DAL, EGO, EWZ, GLW, GS, GSAT, HBAN, KGC, LLY, M, MDLZ, MSFT, MT, MU, NLNK, P, SBUX, SLV, SVU, TMUS, UAL, WYNN, X, YHOO. Long puts: BID, FCX, GM, NAV, SCTY, VLO