There truly are very few places to hide during the current financial crisis and economic recession. Trust in the markets is at an all-time low, and volatility is at an all-time high. The most senior of professionals in this business are shaking their heads in amazement.

We have not seen anything like this during our lifetimes. When it will end is anyone's guess. The silver lining, I suppose, is that it will indeed end at some point. When it does, investors can look forward to a landscape of well-run companies trading at discounted prices.

One of my favorite blue-chip names that have been taken down along with everyone else is Walt Disney Co. (NYSE: DIS).

I wrote about the company in early September when times were tough, but before the financial crisis brought its wrath. At the time, I thought shares were undervalued at a price just north of $30 per share.

Ladies and gentleman, this fund investor grew tired of watching his family's portfolio get pummeled by double-digit percentage points and decided to become a stockholder. So, I snapped up a tiny position in Walt Disney Co. (NYSE: DIS).

Before now, I avoided individual equities for several reasons, including that I was prohibited from owning them because of my previous job. I also felt uncomfortable owning stocks since I write about so many of them. My financial planner also discouraged us from taking positions in individual stocks, saying funds are a better way to go.

But after taking a quick look at my last brokerage statement, which showed my portfolio is down about 10 percent, I soon got over my unease. I realize that it's foolish to chase short-term gains but I thought something had to be done. One of the funds we owned seemed to be heavily weighted with gambling and leisure stocks, a sector that I don't expect to come back for a while. We got rid of it and added an ETF that covers the tech sector, which should be among the first to rebound once the economy starts to improve. Still, I wondered if I could do better.

Disney caught my eye a year ago when I labeled it a "slacker stock" because it was such an underachiever. The shares have barely budged this year, moving down about 3%, which in the current market is not bad. Moreover, Disney is outperforming peers such as Viacom Inc. (NYSE: VIA) and Time Warner Inc. (NYSE: TWX), both of which are down double digits. The stock is trading at forward multiple of 13, which appears cheap to me considering it's lower than Time Warner and unlike Viacom pays a dividend.

Walt Disney Co. (NYSE: DIS) continues to defy skeptics, posting second-quarter profit that beat Wall Street expectations thanks to fee increases at ESPN and a robust business at the theme parks.

Net income at the second-largest media company rose 9% to $1.28 billion, or 66 cents a share, from $1.18 billion, or 57 cents, a year earlier. Excluding one-time items, profit was 62 cents, two cents better than Wall Street forecasts, according to Bloomberg News. Sales rose 2.1% to $9.24 billion. The stock, though, is down in after-hours trading for reasons that are not clear.

Among the highlights:

• Media Networks revenue for the quarter increased 8% to $4.1 billion and segment operating income increased 9% to $1.5 billion helped by growth at ESPN and the Disney Chanel.
  
• Parks and Resorts revenue increased 5% to $3.0 billion and segment operating income increased 3% to $641 million amid higher ticket prices and guest spending at Walt Disney World.
• Studio entertainment and consumer products showed declines amid lower box office receipts and the disappointing performance of "The Chronicles of Narnia: Prince Caspian."

Disney has so many ways of making money that if one business falters, the others take up the slack. That's why it remains the best managed of any media company and the one stock in the sector that remains a buy.

File this under Only in America; the recently-passed national transportation bill includes $42 million to fund further research on a proposed Anaheim to Las Vegas (Disneyland to Casinoland) magnetic levitation high-speed rail system, designed to whisk the entertainment-starved between the two spots at speeds up to 310 mph. I can just see parents loading the kids on the Maglev and shipping them off to Disneyland (Walt Disney, NYSE:DIS) while Mom and Dad hit the craps tables in Sin City.

This funding, of course, is only a drop in the enormous bucket of this cutting-edge technology. The final cost to construct the system is currently estimated at $12 billion. Imagine the ticket prices- even more than entry to Disneyland, including refreshments!

The technology, which has been under study for more than 20 years, has been proven in a number of demonstration project and is currently in use in several sites, most notably a 19-mile stretch in Shanghai, China. The advent of superconductors has helped the technology leap forward, and many countries have preliminary plans to construct the systems. In the U.S., various groups are promoting maglev lines connecting Baltimore and D.C., San Diego to a new proposed airport, through the Pittsburgh area, and Atlanta to Chattanooga.

Part of the high cost of such system stems from the need to construct new corridors; maglev trains don't operate on rail, but rather float over a different type of rail on a cushion of air maintained by magnetic repulsion. In this respect, finding a corridor across the southern desert should be easier than in densely inhabited areas.

However, I have to wonder if this makes financial sense. Assuming a round-trip price similar to that of an airline ($172 at this moment on Delta), just to gross $12 billion, this train would have to carry 10,000 passengers a day, every day for 20 years. To net $12 billion, the number would probably be, who know? 100,000 a day?

With countries around the world preparing to build their own demonstration projects, wouldn't it be smarter to learn on their dime, and wait until the economies of scale are in our favor before building such a costly system?

And do you suppose our money could be better spent connecting sites of less ephemeral value? In this instance, I wouldn't mind if what happens in Las Vegas stays in Las Vegas.

The house that Mouse built roared like the MGM lion.

Walt Disney Co. (NYSE: DIS) today reported better-than-expected fiscal first quarter results, helped by gains from its cable TV networks and theme parks. Shares, down almost 15% over the past year, rose in after-hours trading.

Net income was $1.25 billion, or 63 cents a share, compared with $1.7 billion, or 79 cents, a year earlier, beating the 52-cent consensus forecast of Wall Street analysts. Sales rose 9.1% to $10.45 billion, surpassing Wall Street forecasts of $10.1 billion.

Particularly noteworthy was the performance of the company's Parks and Resorts business. Revenue surged 11% to $2.8 billion while operating income jumped 25% to $505 million. Walt Disney World in Florida reported increased guest spending, attendance and hotel occupancy. Overseas visitors lured by the cheap dollar probably accounted for at least some of this performance.

Rising affiliate fees and advertising sales pushed up sales at Disney's Media Networks business by 10% to $4.17 billion and operating income by 28% to $908 million. Consumer products, the smallest business, saw revenue rise 29% to $870 million and operating income by 38% to $322 million. The only laggard was Studio Entertainment which had flat revenue and saw operating income drop by 15% to $514 million because of a decline in DVD sales. These sorts of declines in the entertainment business are not unusual because of the literal hit or miss nature of the business.

Though Disney is far from recession-proof, it probably will weather any economic downturn better than its peers.

Shares of Time Warner Inc. (NYSE: TWX), News Corp. (NYSE: NWS) and Walt Disney Co. (NYSE: DIS) haven't done well this year. Have they been in Wall Street's dog house long enough?

Time Warner, down 18% this year, trades, at a multiple of 18. Disney, whose shares are little changed, is trading a forward price-to-earnings ratio of 17. News Corp., also little changed, is the most richly valued of the bunch with a forward p/e of 20. All three of them report earnings this week. To put it diplomatically, expectations are low. Disney is probably the most compelling value there because of strong brands and top-flight management.

Revenue at Time Warner is expected to be $1.41 billion, up 14.8% according to analysts surveyed by Thomson Financial. Earnings are expected to be 11 cents compared with 19 cents a year earlier. The stock rose today after the company announced that Jeff Bewkes would replace Richard Parsons as CEO starting next year. Don't expect any big changes at AOL, though. The strategy to turn around the Internet unit was developed by Bewkes. The company will come under pressure to divest AOL and other businesses including publishing. Earnings are due Wednesday.

Disney reports Thursday. Analysts aren't expecting much out of the Mouse House. Revenue is expected to inch up 2.2% to $8.98 billion. Earnings are expected at 41 cents versus 36 cents a year earlier. With the record-low dollar, the company's Theme Parks are dirt-cheap for foreign tourists. Earnings also should be helped by the "High School Musical" franchise and a solid performance by the ABC Television network.

There will be plenty of talk about the acquisition of Dow Jones & Co. (NYSE: DJ) on Thursday's News Corp. earnings conference call. There will also be discussion about the surging popularity of Facebook. Though so far the Fox Business Network has underwhelmed critics, Murdoch will no doubt put a positive spin on the channel's debut. Revenue for the quarter is expected to increase 9.6% to $6.48 billion. Earnings are pegged at 23 cents versus 19 cents a year earlier.

Disney (NYSE: DIS) is planning to open a resort in Hawaii [subscription required]. While its 21 acres of hotels and villas seem large by most standards, it is no where near the scale of the company's big theme parks. According to The Wall Street Journal, "Disney's theme-park operation has been hatching plans to expand its reach by building smaller attractions and resorts."

Disney already has a cruise ship business. Building its large theme parks has been expensive, although they bring in huge sums of money. According to the company 10-Q, the theme park business did $2.9 billion in revenue during the June quarter.

And, that is Disney's dilemma. A big theme park is expensive to build and operate, but the revenue potential clearly reaches into the billions of dollars. Projects like the one in Hawaii may be less expensive to open, but how much money can they bring the company? Even if the company has a dozen of them, the impact is likely to be fairly modest.

Management resources end up being an issue as well. Taking top talent to oversee a large park location that brings in hundreds of millions of dollars probably is a good use of executive time. Going to Hawaii to supervise a small location may be fun, but it also may be a waste of precious manpower.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Walt Disney (NYSE: DIS) scampered into the earnings confessional just after the close to report third-quarter net income of $1.18 billion, a 4.7% increase from the previous year. Per-share earnings increased to 57 cents per share, or 58 cents excluding items. Analysts were expecting The Mouse House to bank just 55 cents per share, according to estimates compiled by Bloomberg.

Sales were 6.7% higher at $9.05 billion, also edging out the consensus view of $9.01 billion. Revenue from parks and resorts rose 7.4% to $2.9 billion, cable-network revenue rose 4.5% to $2.3 billion, and media networks revenue was 5.6% higher at $3.8 billion.

In other news, Disney announced plans to buy Club Penguin - an online site that enables children to create their own virtual polar-friendly friend - for $350 million in cash. If Club Penguin meets certain performance goals through 2009, an additional $350 million will be paid. The Wall Street Journal notes that this is Disney's first foray into the world of virtual and social networking.

In after-hours trading, DIS shares have slipped about 0.70% after a 2.5% close higher in regular activity.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Walt Disney Co. (NYSE: DIS) today reported better-than-expected second quarter results helped by the strong performance from its studio entertainment and television networks businesses.

Net income was $931 million, or 44 cents per share, up 27 percent compared with $737 million, or 37 cents, a year earlier, Revenue rose 1 percent to $8.07 billion. Analysts were expecting profit of 36 cents on revenue of $8.1 billion, according to Thomson Financial.

Will investors have to wish upon a star for better returns? The company should answer these and many other questions in the upcoming conference call. All times are eastern.

4;30- Hold music is catchy, hip and unfamiliar. "High School Musical" maybe? Anyway, I am officially old.

Walt Disney Co. (NYSE: DIS) today reported better-than-expected second quarter results helped by the strong performance from its studio entertainment and television networks businesses.

Net income was $931 million, or 44 cents per share, compared with $737 million, or 37 cents, a year earlier, Revenue rose 1 percent to $8.07 billion. Analysts were expecting profit of 36 cents on revenue of $8.1 billion, according to Thomson Financial.

Will investors have to wish upon a star for better returns? The company should answer these and many other questions in the upcoming conference call. All times are eastern.

4;30- Hold music is catchy, hip and unfamiliar. "High School Musical" maybe? Anyway, I am officially old.

Thomas Skaggs introduces Lowell Singer, the former analyst just named Vp of IR.

Bob Iger,

These results are evident of our ability to nuture great creativity. They also validate strategic vision and quality of Disney management team. On the creative front, this is an exciting time for us. "It is simply great"," he said of Pirates movie. Also lauded Rataoulle. Releasing Blue-Ray version of Pirates movie .

Disney channel continues to deliver. We are capturing the interest of pre-schoolers with Playhouse Disney's MIckey Mouse Club House. There's a new WInnie the Poo show.,

ABC- Solid ahead of upfronts. Current upfront is strong. Among networks, ABC reaches more affluent families.

Disney theme parks are doign well. Consumer products are exceeding expectations. Merchandise for Cars is expected to inrease substantially this year.

The decision of Walt Disney Co. (NYSE: DIS) to let gay couples have Fairy Tale weddings at its Disneyland and Walt Disney World resorts has everything to do with profits and little to do with social policy.

These wedding packages aren't cheap. The $25,000 Magic Kingdom Park wedding deal in Disney World lets people get married with Cinderella's Castle as a backdrop. Guests are transported down Main Street USA via motorized cars. Costumed trumpeters herald the arrival of the couple in a horse-drawn carriage.

Sounds lovely, no?

Walt Disney Co. (NYSE:DIS) won't have to wish upon a star when it reports fiscal first quarter results on Feb. 7. The company's results, while not particularly magical, will be fine.

Revenue is expected to rise 7.6 percent to $9.52 billion, according to Thomson Financial. Profit is expected to drop to 39 cents from 35 cents as the second-largest media conglomerate boosts spending on its theme parks and digital business.

Last year was a good one for Disney at the box office. "Pirates of the Caribbean: Dead Man's Chest" was the top movie of the year, grossing more than $423 million, according to Box Office Mojo. Another Disney movie "Cars" was second with $244 million. ABC's "Dancing with the Stars" was the third-most popular last year while "Desperate Housewives" was the eighth, according to Nielsen Media Research. Of course, "Lost" will attract scads of viewers once original shows start airing.

The theme parks have done well this year. Chief Financial Officer Thomas Skaggs said in December that the company was looking to expand its theme park business outside the U.S. The weak dollar should be good for Walt Disney World and Disneyland Park which attract tourists from Europe and Asia.

Wall Street has mixed views on Disney.

Fourteen analysts rate the stock either a strong buy or buy. Twelve consider it a hold and one a sell. Their mean price target is $37.62.

Also check out some other earnings reports that we're following, and let us know what you're expecting.