Marvel: Simply Marvelous, Pretty Expensive

Shares of Marvel Entertainment (MVL) leaped to over $37 as news of a JP Morgan upgrade sent the stock in motion. Morgan is predicting stronger than expected sales for Marvel next year.

The real test for the future of Marvel, in my opinion, was the success of Iron Man. Iron Man is what most would consider a "B-list star", but the company was able to turn the B-lister into an A-lister at the box office. That spells big things for the future as the Marvel Universe is full of solid B-listers to compliment the A-listers that have already hit it big in theaters.

Comic Book sales have taken a hit in the recession, but as the economy rebounds, comic sales will increase along with sales of the plethora of Marvel products out there (toys, games, computer games, etc.). Marvel even has a licensing agreement with Cryptlogic Limited (CRYP), an online producer of gaming software that uses the company's characters to promote various software ventures.

I've liked the Marvel stock for years, since it was trading for sixteen dollars where I bought in a while ago. I sold my shares for more than a ten dollar profit but have since procrastinated getting back in. The prospects of this company can be huge as the endless list of characters continue to make appearances on the big screen. Even better, Marvel now gets huge chunks of proceeds from their movies, something the company is missing from the Spider Man franchise, which makes Marvel Entertainment a force to be reckoned with in the Entertainment Arena.

I would like to see the stock drop below thirty dollars again before buying in, but that time may have passed. I'll keep it on my watch list and if it does approach those prices once again, I'm in.

For now, I may add a few shares to the kids' retirement fund as I see good things for MVL long term.

Disclosure: VFC has no position in MVL.

Comments

[A. Nony Mouse:]

Is this about Marvel Entertainment....or all about you? Difficult discern>

Jul 04 08:27 AM

[jg1945:]

I think it's about Marvel, his selling too soon, and the procrastination of whether to get back in. Lots of people go thru this exercise. Proves he's one of us. Good story with info on the company.

Jul 04 11:02 AM

[VFC's Stock...:]

Thanks for the comments. I like MVL, thought I made that pretty clear in my article, but since it is an article written by me, it's also about my take on the company.

The reason why I have procrastinated about getting back in is because the crash of last year and early this year left a plethora of other stocks out there that were highly undervalued. I think MVL held up very well during the crash and never became as undervalued as other stocks, but that also meant that MVL wouldn't have the huge percentage gains that the undervalued picks have had as they rebounded anywhere from 100%-3000%. MVL will eventually double, but there's stocks in this market that are providing doubles overnight in some cases. Those are the ones that I'm looking for right now.

MVL is a great pick for the long term, don't get me wrong, and it will be goin into my kids' IRA.

Thanks for reading,

VFC

Jul 04 01:07 PM

[whisperonth...:]

Nah, I think the reason you haven't gotten back in is because you know it's most likely at the top of its game and going to take a dive soon. You really do want it to go back below 30, and would really love to have it go back down to 16 again, so you can make your cushy profit again. I don't have a problem with that. I just don't know why you didn't just say it.

Jul 04 06:54 PM

[VFC's Stock...:]

Don't think it will hit sixteen again, maybe mid twenties. It is at the top short term, will drop for a bit after the analyst that gave it a 'BUY' rating shorts the stock, but long term MVL is a winner.

In the meantime, I'll ride some triples before I buy back in.

VFC

Jul 04 09:17 PM

[adamcz:]

Why did you make a post about a marketable security without sharing what it is worth, and how you arrived at that value? There is no thesis here to agree or disagree with. Worthless.

Jul 31 07:17 AM

[VFC's Stock...:]

Adam,

Thanks for the comment. Appreciate it!

VFC

Jul 31 09:44 AM