|
I bought this stock at 30... 2.5 years ago just before Shrek the Third was released. I knew it would be a monster but I also knew they planned 2 more Shrek sequels at the time, plus the Puss n Boots spinoff, which I think will be a hit. The stock went up to 36 upon Shrek 3's release, sank into the teens and is riding high again. I haven't sold anything. I am a long term holder of this stock because I believe they are creating value with their steady library of movies, which will provide steady revenue streams with successive generations of kids, like the Pixar library. I have 2 young kids and we own most of the Pixar title. While the Dreamworks library isn't as impressive, there are enough titles and franchises (Kung Fu Panda, Madagascar, Shrek - maybe more???) to keep milking the money makers while taking risks with other types of movies, even those that disappoint (Flushed Away, Bee Movie, MvA) but are certainly not total, disastrous flops. With the Penguins of Madagascar, the forthcoming KFP TV series and sequel in the works, Shrek the Fourth queued up with a 5th certainly to follow, plus their other titles....DWA is building strong momentum and steadily building its cash and moving ahead. The P/E is slightly high now but I think this stock is primed for a nice pop over 40 in 2010 upon Shrek 4's release. I'm not buying any more but I'm sure not going to sell either. I'd rate this a HOLD.
Sentiment :
Hold
|