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Sell Marvel

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August 31, 2009 – Comments (7) | RELATED TICKERS: MVL.DL , DIS

So, Disney is buying Marvel. Great if you owned MVL (like I did) at the time of the announcement. But not so great if you believe in the superhero potential MVL was sitting on. That is now being diluted by all the other stuff Disney owns. Some of that is pretty good (the parks come to mind), but a significant part of it is not all that good (ABC, anyone?). I just don't see a lot of synergies allowing for cost savings, or Hannah Montana fans becoming Iron Man fans because of this. And at $49 (roughly what MVL is going for at the time of writing), you are not leaving much money on the table.

Time to take a profit on this one, and find a new investment for the money.

Thanks to the Motley Fool Stock Adviser team for stearing me to MVL!

7 Comments – Post Your Own

#1) On August 31, 2009 at 10:55 AM, Broken196 (< 20) wrote:

I couldn't agree with your more. In my blog I wrote how it feels like my childhood comic memories are about to be violated.

Cash out. 

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#2) On August 31, 2009 at 11:04 AM, AllStarPortfolio (24.31) wrote:

Say it ain't so!. Is it a done deal? or is there still a chance for MVL to back out?

Oh! Sad day! I also am of the camp that thinks MVL was about to become AS BIG AS Disney. They had 20 years of huge international growth in big money sectors. Film, Toys, Books, Music, Theme Parks, Copywrites (notebooks, pencils, blankets, shirts, etc). 

MVL was my only good pick ever! lol

Why would they do that?         ........

-solaris

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#3) On August 31, 2009 at 11:31 AM, ReadEmAnWeep (47.91) wrote:

Here is another blog:

MVL to become another puppet

Not mine, just saw these two blogs posted at the same time.

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#4) On August 31, 2009 at 11:32 AM, ReadEmAnWeep (47.91) wrote:

Ha, sry broken. Didn't see that you already posted here.

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#5) On August 31, 2009 at 11:34 AM, ReadEmAnWeep (47.91) wrote:

Here is a quick question:

So, MVL's market cap is 3.03b currently. Disney is thinking about buying it for 4b. So isn't that an automatic profit?

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#6) On August 31, 2009 at 11:47 AM, leohaas (32.35) wrote:

The $3.03B market cap was based on last Friday's close. Disney is paying $30 a share plus 0.745 shares of DIS. That comes to $50 a share (again using last Friday's closing as the benchmark). Today's price action is around $49, so the "automatic profit" remaining is about a dollar, or 2%. For those 2%, you take the risk the deal falls through and that DIS declines (at the time of writing, DIS is over 3% down from last Friday, putting the deal close to $49.50/share, while MVL was trading at $48.50).

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#7) On August 31, 2009 at 11:55 AM, Schmacko (65.39) wrote:

I sold my MVL shares today.  As a fan of Marvel's product and not just a shareholder I'm not a fan of this move.  The merger has to be approved by Marvel's shareholders and reviewed for anti-trust considerations but I'm thinking it's a done deal.

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