What would it take to cause Pixar's stock to soar to "one hundred and beyond"?
Some things to think about:
What would be a fair price for someone trying to buy Pixar Animation Studios?
Pixar creates original characters... What are the limited rights (say 5 years) to a set of characters worth?
Pixar has the right to partner with Disney on sequels and Eisner has publicly stated that sequels will be created. If Disney doesn't sign a new deal... Would Pixar decide to invest-in rather than create the sequel for Toy Story 3?
Long-term, would a stock split have a positive effect on the stock price?
We didn't reach $70 but the stock crawled up to $69.48 for a few brief moments.
Folks here keep talking about a $40 share price.
Personally, I don't think we'll reach $40 until all of the following occur:
1) Finding Nemo breaks $300 Million for domestic box-office 2) Second quarter earnings are announced as "far greater than expected" 3) Disney and Pixar announce a new deal 4) Disney and Pixar announce a date for Toy Story 3 5) Pixar splits two, or perhaps three, for one
This is a great time to be long because All of these things could happen this quarter!
Pixar is a great company and the stock is an outstanding addition to a diversified portfolio.
I don�t expect Pixar to break a hundred until after a new deal is announced.
Even if Disney is not on board in 2006, Pixar still has what it takes to succeed. Their products are of the highest quality and their collaboration with Disney has already created a evergreen base to build upon.
You mentioned a stock split. For some reason I was under the impression that it wouldn�t happen until Pixar broke and held $70 for awhile. I suspect that a stock split would have little initial effect on the stock price because many shares are held by institutions but it would permanently move Pixar out of the thirty to sixty dollar range that the stock historically trades in.
Personally, I�d like to see Pixar announce a stock split before the end of the summer and wait until next year to announce the name of their next partner.