Disney's 3rd Quarter Earnings Due Wednesday

We'll know soon enough if the economic downturn is finally starting to affect Disney, and in particular, the theme park attendance. Disney is due to report its fiscal 3rd quarter earnings on Wednesday.

Analysts generally agree that Disney's theme-park business could soften late this year and into the next. International visitation has been robust, but they worry that domestic visitation could slow as airlines cut flights and raise fares. Major airlines are shedding capacity at Orlando International Airport, a gateway for visitors to the Walt Disney World resort.

"The theme-park business won't be nearly as bad as investors fear this quarter," Pali Capital Inc. analyst Rich Greenfield said. "But 2009 is much less clear and our concern grows substantially," at the end of this year.

Personally, I would continue to buy Disney stocks. If it drops below $30 again, it will become such an incredible buy, especially when the economy recovers.

Zz.