Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Dreamworks Animation Is At A Crucial Juncture

The last time I wrote about Dreamworks Animation (NASDAQ:DWA) the company offered up a plausible strategy which, if successfully executed, gave it a chance to turn itself around. It even had some momentum at the time.

My concerns were it was in danger of outpacing its fundamentals, and that has proven to be true. Dreamworks is attempting to grow itself into a conglomerate like its peers; attempting to leverage its franchises through a number of distribution outlets. So far, those results are mixed, and undermined by the fact the company is struggling to introduce new franchises, and as confirmed by its "How to Train Your Dragon 2" performance, is in danger of vastly underperforming its existing franchises.

Since...

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