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Disneyland asked for $900 to upgrade my Magic Key for 2 months

2024.05.21 15:37 Development-Feisty Disneyland asked for $900 to upgrade my Magic Key for 2 months

Disneyland asked for $900 to upgrade my Magic Key for 2 months
Originally when I had contacted guest services to ask about changing the magic key to the higher tier magic key when the magic keys went on sale again I was told that yes they did prorate the remaining time
What is prorating?
To prorate means to adjust the cost of something to reflect only the price of what is used.
To be honest I’m not sure of the legality of retroactively charging for a service I did not receive.
I have honestly never encountered a business that charges retroactively
Like can you imagine he bought a round-trip ticket to Hawaii and on the way back you wanted to upgrade your seats and the airline told you that you could do that but you had to pay for the upgraded seats on your outbound flight- even though you didn’t receive upgraded seats?
Not allowing customers to just renew a pass at a higher level and start their pass on the date they wish to renew or charging only the difference in price is the standard worldwide.
Like my question is, if I’m paying the $900 but I’ve had to pay them for parking each time I go are they going to refund my parking costs?
What about the discounts I would’ve gotten for food and merchandise that I didn’t get?
How do we give me back the blackout dates in December when I couldn’t go to the park?
It seems like not prorating is opening up a can of worms because anybody who pays for a good or service is expecting to receive that good or service
and
If I have to pay retroactively for the months that I did not have access to the premium services offered with the premium pass then I believe legally they have to retroactively give me the benefits of that service
We would’ve had no trouble paying in a lump sum the difference between the two passes for the remaining two months or changing the date of our renewal to yesterday and renewing at the higher pass but the idea of giving Disney $1800 for two months of premium pass access is beyond ridiculous ($450)
As we were leaving my mom said, maybe we should just cancel our passes completely and not renew
(Photo is mine, I took it)
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2024.05.21 07:19 FinTecGeek Vivid Seats (SEAT)

I've had a few people reach out to me for my opinion on Vivid Seats (SEAT). Software and information technology is my number one niche - and this company doesn't look that great to me despite some strong hype and recommendations from "experts." Let me break down what I see to this bigger group so it might answer some other questions out there.
If you're a value investor, you might be liking the P/S ration under 2 and 38% ROIC in the interactive media area of the market. But, this is really not my preferred value measure, and I don't recommend using it here (I'll explain why):
1 - I use EV/EBITDA and Free Cash Flow Yield in this area of the market. Ideally, we want to find P/S around 1, but this company has some problems that aren't addressed by that. EV/EBITDA shows the company is quite expensive right now at 17x. I really focus on the 3-8x range with a reasonable P/E and P/S vs direct peers noted in the most recent 10K.
2 - They have more goodwill/intangible assets than they do market cap. This inflates the asset base and makes many of our favorite quantitative measures useless unless you back all but about 10% of that out of the calculation. It becomes obvious when you have more long term intangible assets than EV, you are massively overpaying to acquire competitors or businesses in adjacent streams. This alone is reason enough for me to strike them from a watchlist (or never add them more likely).
3 - ROE looks amazing, but they just transitioned from this terrible capital structure where they had negative shareholder equity to a positive shareholder equity in the last year. Based on that, throw out the ROE calculation. I could give you a "good answer" with how to calculate ROE without a reasonable beginning of period starting point, but there's no use. It will be a very bad number and not worth your time.
4 - Revenue recognition. This is really getting into ultra-specific aspects of the software and interactive media niches. I have a strong suspicion that the way that SEAT chooses to recognize their revenue is causing problems downstream in the valuation metrics and elsewhere. Companies get some latitude on how they want to do this - but they reported 8% EBITDA on over 700mm in revenue with only 700 employees. They do have 34mm in deferred revenue. But I suspect they are "writing off" revenue they should be collecting (not the same as a discount) and there isn't great transparency into what they are really collecting vs what the maximum dollar amount is they could be collecting.
At the end of the day, they are trying to facilitate this arbitrage of ticket sellers and ticket buyers. I think this should be a high profit business in a vacuum, absent poor management and reporting issues and whatever else might be in the way here. But at $5 a share, I think this looks very speculative and I wouldn't personally touch it until I can see the capital structure stand still for a few FY and wrap my head around why we're not printing money with 700 employees vs 774mm in sales.
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