Trading Ideas: Marvel Entertainment (MVL)
Marvel Entertainment (MVL) makes toys, licenses and publishes, and produces films with a portfolio of over 5000 characters. It is responsible for such cultural icons as Spider-Man and The Incredible Hulk. Most people on Earth are familiar with at least a few of these characters.
What is even more exciting is the performance of the stock. It just hit a new 52-week high yesterday and is looking to go even higher. It was just announced that MVL will be added to the S&P 400 Midcap Index. This could help the stock pop even more as index funds will be buying it to mimic the actual index.
The fundamentals are outstanding for the company. The latest catalyst was the hugely successful release of Iron Man, which has already pulled in about $280 million at the box office. Even with the stock price run-up, the shares are changing hands at a little over 19x current-year earnings. This is not expensive for a company that has so much going for it.
In more good news, it was recently announced that James Breyer, a director at the company, made a purchase of 25,000 shares of the stock. It is usually much more newsworthy when there is insider buying rather than selling, especially after a stock has made a big run. Given all the great news, we see the stock north of $42 in 3-to-6 months.
Suggested Stop: $33.92
Disclosure: none
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