Winning

Winning

Monday, September 29, 2014

I am going to go out on a limb here

I am going to go out on a limb here because I feel like gambling. This is probably one of the most dangerous picks I issued but it could come up with one of the biggest profits.
If this pic wins, I could generate 200-300% and if the pic loses I could lose 50-100%.
So whats this one all about? It comes down to the man and 2 egos, as I am reading between the lines on this one.
Dreamworks is Jeffery Katzenburg's baby. Dreamworks has been bouncing up and down as of late due to some of its recent releases not preforming as well as investors think they should have, and stockholders are pressuring Katz to jump into safe harbor by allowing a big conglomerate from Asia to purchase them to absorb hits during bad releases or market fluctuations. The Katz really doesnt want to do this. He doesnt want anyone telling him how to steer his ship or what to work on.  The company that is considering buying out dreamworks, Softbank is headed up by Maysayoshi Son, who does rule with an iron fist. Plus, they are like Sony or Beatrice, buying up all kinds of property in many different industries. Jeffery Katzenburg has to weigh this: Am I gonna let a big company swallow my company and then am I gonna let some guy from Asia tell me what to do while I now operate with little autonomy? Plus, the company is not specifically in movies: they just want us in thier portfolio...would this company by telling us what to do with little experience derail us and our vision?
Dreamworks stock is up and now Softworks not liking the increased price is rumbling that nothing is set in stone. Plus the Katz wants to be Kirk, not Spock. Or maybe he would be like Uhura. Who knows. Don't know when it will go down, don't know how long it will take.
Yes, this is a gamble, but again I am reading between the lines. If you have some cash you could burn and want to speculate with, Id give this about a 55%-60% chance of success. Its a toss of the dice at the craps table, with the odds slightly in your favor. When it comes down to a dick measuring contest between Asia and the US, Im gonna put my money on Katz.
For further info before you leap: http://www.bloomberg.com/news/2014-09-28/dreamworks-animation-said-weighing-sale-to-softbank.html?cmpid=yhoo

Stay Frosty,
Mark

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