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By Mark Phillips
Is the Mouse Cheap Enough Now?

DIS - The Walt Disney Company $24.63

Helped along by the precipitous broad market decline this week, DIS fell right to our targeted entry on Thursday. While it wasn't a rapid rebound, there was no question that buyers were starting to nibble on the stock at the perceived bargain price. Even though the stock fell through the December and March lows before finding support (this is what we were looking for), it did bounce at the long-term ascending trendline that we mentioned in the original write up. This is what we are trying to target for new positions; weekly Stochastics beginning to recover from oversold, daily stochastics bottomed in oversold and turning up, while the stock is bouncing from major support. Friday saw a bit of buying come into the stock, driving it above $25 again. But I am inherently suspicious of this buying at the end of another big down week...it has the earmarks of short-covering again. Latecomers may want to look for another dip near our entry to initiate new positions next week, as we have stepped in for what we think should be a long, if somewhat sedate recovery. Just in case we jumped too soon, we are placing a tight stop at $22.50, right at the 1998 low.

BUY LEAP JAN-2003 $30.00 VDS-AF $2.05 BUY LEAP JAN-2004 $30.00 LWD-AF $3.60