Dreamworks: Could This Stock Add Some Magic To Your Portfolio In 2012?
By Bret Jensen:Media companies, whose earnings are driven by content are notoriously hard to predict as investments. However, one that seems underpriced given their film assets, strong production pipeline and reasonable valuation is Dreamworks.DreamWorks Animation (DWA) – “DreamWorks Animation SKG, Inc. engages in the development, production, and exploitation of animated feature films and characters worldwide. It provides animated feature films and characters for the theatrical, home entertainment, television, and merchandising and licensing markets”. (Business description from Yahoo Finance) 7 reasons why Dreamworks could provide solid returns in 2012:1. The stock is selling at the bottom of its five year valuation range based on P/E, P/S, P/CF and P/B.2. The stock seems to be building a technical base just under current price levels (See Chart).3. DreamWorks plans to release three films for 2013 for the first time ever. It also just signed a pay TV distribution with Netflix (NFLX)Complete Story »