If a person has followed film studios over past decades he realizes that studios ALL have good years and bad years. Almost no exceptions. I say "ALMOST" because Pixar was the only studio that hit consistent home runs with their films. The Pixar story is an amazing tale. Dreamworks is as similar to Pixar as any other studio can get. Same business model but different approach to their films. I don't think SKG were seeking the same perfection that John Lassiter and Steve Jobs were. But they still make great, profitable movies. Animated features draw kids and families that live action films don't seem to attract. They seem to assure a better success ratio on films for these studios. Dreamworks is in a better position financially than ever before in there history. No debt and an increasing library producing a steady revenue stream. They have several franchises for sequel opportunities. The have a history of successful films and a promising lineup for upcoming years. I personally feel Katzenberg has done a great job with the company over the years. He was a big factor in Disney's animated success for years and he brought all that experience to DWA. I believe the distribution deal will be be worked out successfully next year. Why is the DWA stock in the toilet? We have had quite a few great movies but still we have seen our price decline. We are down 50% in the past 12 months. In that we are profitable, debt free and have in an exciting industry I think DWA shares are a great buy at these levels. We are only $2 above book value and who knows what the future may bring. I will continue adding to my shares at current prices because DWA shares should be priced at least in the mid twenties. I think we are just going through a down cycle for Dreamworks at the moment. JMHO.
I've done well with Marvel (DIS bought) and DIS. Kids and intellectual property seem like very good bets to me. My big question is, how good is management. I would hope Katz is in the good category, but always hard to tell, and takes time to bear out. I too am long and planning on adding as they prove their ability.