JohnCenaFan28
04-01-2009, 12:37 AM
DreamWorks Animation (NYSE: DWA) has done it again. The studio's new computer cartoon, Monsters Vs. Aliens, which was distributed by Viacom (NYSE: VIA), debuted in the top slot over the weekend at domestic multiplexes. According to Boxofficemojo estimates at the time of this writing, the film earned around $58 million. I think we all expected the performance in terms of rank, but I have to say that I thought the film would have taken in north of $60 million.
If you look at this very useful reference, you'll see that the opening for Monsters is relatively decent when compared to other DreamWorks Animation openings. But since both Kung Fu Panda and Madagascar: Escape 2 Africa had both hit the $60 million mark, I thought Monsters could do the same. An element to keep in mind is the timing. This is the first time that the studio opened one of its animated projects in March since The Road to El Dorado, and that one doesn't really count since it wasn't a CGI affair. So from that standpoint, perhaps this is a big victory.
One thing's completely unambiguous: World Wrestling Entertainment (NYSE: WWE) failed with 12 Rounds. The picture looked like it could have done good business, but even big-gun distributor News Corp. (NYSE: NWS) couldn't push this one into the top five. Right now, 12 Rounds is in seventh place with around $5 million in its purse. WWE needed to hit with this one, as I observed in my preview piece. Now, I'm not sure what the movie cost to make. But I've read a couple sources, including this one, that seem to imply that the budget was somewhere around $20 million. I could believe that. No matter what, this couldn't have been an ultra-low budget affair, thus making a $5 million opening weekend simply unacceptable.
So, we have a tale of two media stocks. One scores at the box office, one is down for the count. Take WWE first: this really is a major blow since the company is spending a lot of money to be in the movie business and since its cash-flow statement isn't great right now. The market doesn't seem to see it that way, though. As I write this, shares of WWE are down only 1.9%. That might sound like a lot, but honestly, on a down day like today, it doesn't seem like a bad hit. Vince McMahon needs to work on his movie model, though. My best advice is to work on concept first. Don't try to make the movies mere vehicles for his talent roster. For some reason, that doesn't work. I'm not sure why. On paper, throwing John Cena before the camera should be gold. It's not. The other thing is: don't spend a lot on the projects. Try to make movies for $5 million or less. A lot less. It can be done. I don't think I'd buy WWE today, even on its weakness. I'll need to see more information on how its cash-flow statement is doing during the next quarterly report.
As for DreamWorks Animation, it's down around 2% as of the last bid. I don't think I'd buy this stock either. It isn't offering enough of a pullback to make it interesting. If it were near the 52-week low, then it might be compelling. However, the studio won't be releasing any major products for the rest of the year. So there aren't necessarily any catalysts to propel the stock higher in the near term (unless you want to count earnings trades). Keep that in mind when considering the company for your portfolio.
Source: Blogging Stocks
If you look at this very useful reference, you'll see that the opening for Monsters is relatively decent when compared to other DreamWorks Animation openings. But since both Kung Fu Panda and Madagascar: Escape 2 Africa had both hit the $60 million mark, I thought Monsters could do the same. An element to keep in mind is the timing. This is the first time that the studio opened one of its animated projects in March since The Road to El Dorado, and that one doesn't really count since it wasn't a CGI affair. So from that standpoint, perhaps this is a big victory.
One thing's completely unambiguous: World Wrestling Entertainment (NYSE: WWE) failed with 12 Rounds. The picture looked like it could have done good business, but even big-gun distributor News Corp. (NYSE: NWS) couldn't push this one into the top five. Right now, 12 Rounds is in seventh place with around $5 million in its purse. WWE needed to hit with this one, as I observed in my preview piece. Now, I'm not sure what the movie cost to make. But I've read a couple sources, including this one, that seem to imply that the budget was somewhere around $20 million. I could believe that. No matter what, this couldn't have been an ultra-low budget affair, thus making a $5 million opening weekend simply unacceptable.
So, we have a tale of two media stocks. One scores at the box office, one is down for the count. Take WWE first: this really is a major blow since the company is spending a lot of money to be in the movie business and since its cash-flow statement isn't great right now. The market doesn't seem to see it that way, though. As I write this, shares of WWE are down only 1.9%. That might sound like a lot, but honestly, on a down day like today, it doesn't seem like a bad hit. Vince McMahon needs to work on his movie model, though. My best advice is to work on concept first. Don't try to make the movies mere vehicles for his talent roster. For some reason, that doesn't work. I'm not sure why. On paper, throwing John Cena before the camera should be gold. It's not. The other thing is: don't spend a lot on the projects. Try to make movies for $5 million or less. A lot less. It can be done. I don't think I'd buy WWE today, even on its weakness. I'll need to see more information on how its cash-flow statement is doing during the next quarterly report.
As for DreamWorks Animation, it's down around 2% as of the last bid. I don't think I'd buy this stock either. It isn't offering enough of a pullback to make it interesting. If it were near the 52-week low, then it might be compelling. However, the studio won't be releasing any major products for the rest of the year. So there aren't necessarily any catalysts to propel the stock higher in the near term (unless you want to count earnings trades). Keep that in mind when considering the company for your portfolio.
Source: Blogging Stocks