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By Jason Stipp and Jeremy Glaser | 11-01-2012 04:00 PM

Cleaning Up

Markets editor Jeremy Glaser examines how hurricane cleanup may impact the insurance and energy sectors, what a senior leadership cleanup at Apple means for the firm, and more.

Jason Stipp: I'm Jason Stipp for Morningstar, and welcome to The Friday Five.

There is not a small amount of cleanup after an eventful week in the market. Here to offer the details is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: Jason, glad to be here.

Stipp: What do you have for The Friday Five this week?

Glaser: Well, we're going to talk about Sandy, Disney, Netflix, Ford and GM, and finally Apple.

Stipp: We know that Sandy had a devastating impact on property. There is also loss of life. What is the impact potentially, though, on economics and corporations?

Glaser: There certainly has been a lot of cleanup in the aftermath of Sandy. The markets were closed for two days, something that is, if not unprecedented, extremely rare to have a weather-related closing like that. Things are starting to get a little bit back to normal, but certainly not all the way there, with so many people still without power; people have been displaced for some time now.

In terms of the impact on the business community, it's probably going to be a lot more muted than the impact on the individuals who were affected by the storm. We talked to our insurance analyst, Drew Woodbury, earlier this week. He thinks the insurance companies are fairly well-positioned to pay out the estimated $5 billion to $10 billion in insurable claims. The flood claims are paid out by the federal government--that certainly helps them. The fact that they haven't had any other big events this year certainly helps them. And the better pricing that they've had recently and probably will be able to have in the future makes their capital cushion sufficient in order to pay out those claims. Those numbers could still inch higher--certainly this is not over yet as the recovery efforts continue, but it seems like something they will be able to handle.

On the utility side, Travis Miller, who is our [utilities] analyst, thinks the impact could be a little bit more--just the amount of money that's going to have to be spent to get power back to so many customers, the lost revenue from having those customers disconnected for so long, but he thinks over the long term, they'll be able to make up a lot of that ground.

So definitely, no major economic impacts so far that we think are going to be long-term in nature. Just some short-term issues.

Stipp: News in the media sector this week shows dealmakers hoping to clean up at the box office after a recent transaction. What are the details on that?

Glaser: Bob Iger made another big deal at Disney, spending about $4 billion to buy Lucasfilms from George Lucas, who had 100% owned it before.

And this is really the next in a series of deals that Iger has done to really position Disney in order to capitalize on very popular brands. You look at the Pixar deal, you look at buying Marvel, and now with Lucas and bringing the Star Wars franchise under the tent, it just shows what Disney's strategy is: You take these franchises and then you try to market them and exploit them in every way possible to eke out every dollar of it.

They already said they are planning on making at least three more Star Wars films. I think we can bet on more Star Wars theme park attractions. You can see it potentially moving over into the TV space as well.

Michael Corty, who is our Disney analyst, thinks they paid a fair price for the Star Wars assets. The shares probably look about fairly valued right now, but certainly if anyone is able to pull a deal off like this, it's Disney. They've done it in the past. And all signs [indicate] this is a deal that they are going to be able to execute well on in the coming years.

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