Stock talk for the main street investor.

Today – Buying Dreamworks

I bought a small amount of Dreamworks (DWA) on Friday after I got scared the stock wouldn’t stop going up. My reasoning was, if How To Train Your Dragon came out with good numbers and the stock went up I would be happy with a gain on my small position. If the stock dropped I would be able to scoop up more shares and bring my average cost down. The latter happened today after Wall Street was disapointed with $43.3 million in box office during opening weekend.

I was more concerned about the reaction from movie goers and the long term effects on Dreamworks. So far, so good. Reviews are outstanding from critics and movie goers. The 3D is apparently outstanding and the story line is good as well. Expect the word to spread through elementary schools like wildfire.

I could go into why a “disappointing” opening weekend by Wall Street standards doesn’t mean anything but I’ll leave you with one thought on how much I trust those idiots. Avatar had a “disappointing” opening weekend. That turned out OK.

Disclosure: Author is long DWA.

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