One of the messiest stories on Wall Street this year is the Walt Disney Co. (DIS). And considering the problems elsewhere on Wall Street, that’s saying something!
Disney suspended its dividend a little more than a year ago. Then, more recently, it ousted its CEO Bob Chapek in November. The surprise move came just months after the beleaguered CEO had hired outside consulting firm McKinsey to try and slash spending and restructure operations, a sure sign that company was adrift. The stock has been in a tailspin all year as a result, and is currently down almost 40% since January 1.
The lesson for investors should be clear: Management matters, even at a company with a brand as big as Disney.
This post appeared first on Contrarian Outlook.