Merrill Lynch released a negative report on The Walt Disney Co. entitled, “Pulling Out the Machete,” but Cramer disagreed with its conclusions.
In fact, Merrill’s grim outlook for Disney through 2010 is just the kind of soft prediction investors need before what Cramer said will be a “so-so quarter.” He recommended waiting for the quarter and then any potential analyst estimate cuts before buying DIS. With gas prices down, the potential for a turnaround in 2009 and Disney’s strong franchises, such as High School Musical, Cramer’s bullish long term on this stock.