Watching Marvel Entertainment Inc.

Posted on November 10, 2005 , filed under Stocks | Print This Post

MVL, Marvel Entertainment Inc. operates as a character-based entertainment company that engages in licensing, publishing, and toy businesses in the United States and internationally. The company had a library of approximately 5,000 characters, as of September 20, 2005.

MVL has taken quite a hit over disappointing 3rd quarter earnings and concerns over lack of content in the company’s pipeline for 2006. The stock dropped from $18 to $14 in yesterdays trading. I expect the stock to drop further in the next 1-6 months. Investors in MVL have been locked in a rollercoaster ride. I believe speculation and overeager short sellers have pushed the price of the stock down very aggressively. The company’s next big hit, X-Men 3, is set to be released May 26th, 2005. As we approach the release date of the movie, MVL should see a rebound. The X-Men, is a proven franchise with strong licensing opportunities for video games and toys. I like MVL at under $12.

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