The weak action yesterday in Dreamworks Animation (DWA) following the better than expected opening of Madagascar 2: Escape 2 Africa led me to buy DWA shares again for a trade. I am looking to for a move north of $30 assuming the film continues to track toward greater than $200 million domestically. The prior trade […]
I sold all client and personal positions in Dreamworks Animation (DWA) on Tuesday after it had rebounded from overzealous selling following its own 2Q08 report. The sale of DWA was a result of my trading thesis falling apart when the company indicated that higher than expected international marketing costs would take away the earnings upside […]
My thesis on Dreamworks Animation fell apart when the company reported 2Q results after the close on Tuesday. While I understand the 10% decline in the stock, I think it is overdone and actually leaves value in the shares ahead of catalysts that are coming but not until October and November. The problem is there […]
Dreamworks Animation (DWA) shares popped yesterday afternoon. I presume it was due to a report from Jessica Reif of Merrill Lynch which I received after the close. Jessica raised her 2Q08 and 2008 EPS estimates from below to above consensus on the basis of the strength in the Kung Fu Panda box office. She noted […]
An analyst I know well, Michael Morris of UBS, downgraded Dreamworks Animation (DWA) this morning driving the shares down more than 7%. I added a little to some smaller client positions on the weakness. The downgrade is based on Morris’ belief that even after after raising his outlook for Kung Fu Panda the shares are […]
I purchased Dreamworks Animation (DWA) across client and personal accounts near the open of trading on Monday. The purchase is intended as a “trading buy” which means I am expecting to be out of the position in less than one year. The holding period may be even shorter if the stock attains my target of […]
A few brief items in the media world for this morning: Kung Fu Panda opens today. The film has received good reviews and there has not been a major child focused film in theatres since Horton Hears A Who. A strong marketing campaign, good tracking data, and the usual optimism about funny talking animals has […]
Dreamworks Animation reported better than expected 1Q08 earnings with EPS of 28 cents and revenues of $156.6 million ahead of consensus of 24 cents and $135 million, respectively. The shares will probably lift a bit but the next major move in the stock will be associated with the June 6th release of Kung Fu Panda. […]
Dreamworks Animation reported better than expected 4Q07 results. EPS of 98 cents beat the 75 cent consensus even after backing out a tax benefit. Revenues of $290 million were ahead of the $285 million consensus and many recent estimates in the $265 million range. The upside came from higher than expected DVD sales of Shrek […]
Paul Allen announced that he is dramatically reducing his remaining position in Dreamworks Animation. Following up on the sale of 12 million shares last November, Allen will now sell an additional 15-17 million shares leaving him with just 6 million shares. Of the shares to be sold, 10-12 million will be sold in a secondary […]
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