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Investing in The Michael Jackson Story

|Includes: AMZN, eBay Inc. (EBAY), GDX, GLD, SLV, SNE, TWX

Most of us saw at least parts of the Michael Jackson funeral. I met Michael on two occassions and I personally felt he was a misunderstood and very sincere human being.

The last time I spoke with him was in 1992 when he was 33 years old. It was like talking to an innocent child who just happened to be a few inches taller than myself. Yet he was a "big thinker" and devoted professional, and those who worked for him said he was a "perfectionist". No wonder his work and talents are so enduring.

Since his death we understand more completely what a " franchise" his body of work was and what timeless commercial value was embedded in every song, every video and every symbol (especially that silver-white sparkling glove).

Marc Lichtenfield, a Senior Analyst at The Smart Profits Report (SmartProfitsReport.com) wrote a clever but thought-provoking article which I have permission to quote from here and there are lessons for all investors:

Four Companies At The Center Of The Michael Jackson Story

~ eBay
(Nasdaq: EBAY): As soon as tickets to the memorial were released, they predictably went on sale on eBay for thousands of dollars.

A search for "Michael Jackson" on eBay yielded 47,611 results, including an autographed photo for $3,200, a sealed version of "Thriller" for $1,200 and even this $1 million bill with Jackson's face on it. And people say the Federal Reserve has recklessly printed money!

 


~ Amazon.com (Nasdaq: AMZN) - If it's for sale, chances are Amazon sells it. You can download the mp3 of "Thriller" for $1.29, purchase a "Michael Jackson Superstar of the 80s" outfit doll for about $1,000, or the Michael Jackson $1 million novelty notes above for $0.99 each (or 100 for $30). At that price, you can't afford to be without your fake Michael Jackson currency.

~ Sony (NYSE: SNE): Michael Jackson's record label was Epic Records, part of Sony Entertainment. He's sold half a million albums since his death, compared with 10,000 the week before he died. You can be sure Sony will try to capitalize on his newfound popularity with some greatest hits albums in the near future.

~ Time Warner (NYSE: TWX): With the vast amount of media coverage that the story is attracting, detailing every morsel of Jackson's life and death, one outlet is emerging from the hungry pack.

Already a well-established site for entertainment news, celebrity gossip and video, the death of the greatest entertainer since Elvis has launched TMZ.com into the stratosphere. Mainstream outlets like CNN and Fox credited TMZ with breaking the story of Jackson's death.

TMZ is a joint venture between two TWX divisions, AOL and Telepictures Productions. Anyone looking for this type of news now has to consider TMZ the go-to website. And over the past three months, page views have jumped more than 26%, in large part due to the spike in Michael Jackson traffic just in the past few weeks.

In short, while it might be difficult to play this news directly, companies with exposure to Michael Jackson's popularity could see a bump in revenue.

Hoping your longs go up and your shorts go down. Marc Lichtenfeld

We thank Marc for reminding us that unexpected events and the lives of great celebrities usually lead to some meaningful investment opportunities for those prescient enough to spot them.

Since Michael Jackson's death, the three big precious metals, platinum, gold and silver, have all taken an overdue correction. I assume there is no correlation between this correction and Michael's passing.

But since Michael did love "glitz and sparkle" and since I personally discovered that he also loved quality items and polished, shiny objects, there will always in my mind be a connection with him and precious metals.

Since we all realize that the time to buy the 3 Big Precious Metals is after a correction, we all ought to be getting ready to buy when they become oversold.

My friends at Casey Research today reported that, "After little change on Tuesday, traders handed the precious metals a pummeling yesterday, with all three suffering significant setbacks and gold plumbing a two-month low.

"There really wasn’t anything to prop up the market, with equities spinning their wheels, the dollar reaping the benefits of a flight from currencies perceived as riskier, and crude prolonging its losing streak.

"Continuing to weigh on gold and silver was this week’s announcement from India that it is doubling import taxes on both metals as the government seeks to use its citizens’ affinity for them to raise money. The move could certainly put a lid on India's gold imports and pressure gold prices.

"Gold’s recent weakness has “gold bulls on the defensive,” said Ralph Preston, a Heritage West Futures commodity analyst in San Diego. “I have a very specific trade recommendation to short the gold market on today’s break of $915 support.”

"Preston is advising clients to short gold “at $912 with an $8 stop-loss at $920,” with “a price objective of $870, risk $8, for a potential profit of $42.”

"Looking at yesterday’s trend numbers, Dan Norcini, writing on jsmineset.com, said that “gold broke down technically in today’s session once it pushed past the $920 level and downside momentum carried it even lower to violate the $915 level. With today’s move it is now solidly below all of the major moving averages with the short term trend firmly in favor of the bears.

"The broad consolidation pattern of the last 5 months shows support near the $890 level followed by more substantial support near $880. Those will have to hold to prevent a rout of the longs that could conceivably take it down as low as $865. It will take very strong buying from overseas to offset the speculative selling that has now arisen. It did seem to uncover some buying of a value nature just above $900 in today’s session.”

Those holding ETFs like GDX, GLD and SLV are now sweating it out, but those who don't or who want to add to their positions, an golden opportunity appears to be unfolding, and it "...don't matter if you're black or white...or "bad" for that matter.

So it appears that we investors might be getting ready to experience our own version of "Thriller" if we are patient enough and prepared enough to "buy low, sell high, and then buy low once again".

The world will miss Michael Jackson, but his legacy and the financial benefits of his talents will live on for generations to come. No matter what you thought of Michael, you'd be a fool not to admire his talent, work ethic and precious uniqueness.

 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please remember investments can fall as well as rise. And they will! - Advanced Investor Technologies LLC accepts no responsibility for any loss or damage resulting directly or indirectly from the use of this content.

Disclosure: Of the stocks and ETFs mention, the only ones I'm long is GLD and SLV.