DreamWorks Animation SKG, Inc. (NASDAQ:DWA)
The Company's business consists the development, production and exploitation of animated films and characters in the theatrical, home entertainment, television, merchandising and licensing and other markets.
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Great media company being punished for short term fluctuation in market conditions. Current stagnation in DVD sales is affecting the entire sector and the industry will figure out a way to deal with this. This company is the pioneer in animation and will figure out a way to survive and grow through innovation ro partnership.
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I bought this in my real portfolio at $23.52 in July 2005 based on the recommendation in TMF stock advisor. I sold out at $24.66 earlier this year. After I examined the situation more I decided that movies were more of a cash consumer than a cash generator. I retrospect I should have bought Pixar - another lesson that cheap is not always the best value!! In CAPs this is a rebound hope to get up my accuracy score!!
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Shrek will pump this stock up next year.
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I think Dreamworks is still in the shadow of Pixar and is coming out of the eurphoric IPO period. The price has declined now to a more realistic P/E ratio. DWA includes the very profitable Shrek franchise (Shrek 3 in production) and a steadily growing library.
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A movie about rats? Hmmm.
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Franchise of Shrek is very powerful. Industry is becoming very competitive but I feel the only competition DWA has is Pixar. Those are and I think will remain the top dogs of computer animation.
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Shrek 3, Jerry Seinfeld, Kung fu Panda = High Returns
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This one may slightly outperform. The problem is the recent saturation of the full-length feature animation market.
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A weak IPO due to management overcommitments and failure subsequently to deliver on said overcommitments. I think the problem has been addressed. Stock up about 20% since then and beating the market. Which is pretty much what I expect until these guys get acquired by somebody. If Pixar can't stay independent... does it make sense that DWA will?!
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