Stocks For May 20, 2008: MVL and CTRP
I’ve added a couple stocks to my radar screen in Marvel Entertainment (MVL) and Ctrip.com (CTRP). Here are my thoughts on these companies.
I saw Marvel’s Iron Man this weekend in theaters and have to say I thoroughly enjoyed it. Iron Man is Marvel’s first self-produced and self-financed film whereas with previous films like Spiderman, Marvel partnered with other studios to produce the films. The licensing fees Marvel collected were a small fraction of the overall money that movies like Spiderman generated. The new approach could result in much higher earnings for the company.
Iron Man had a great first weekend. The movie generated over $100 million domestically and over $200 million internationally at the box office in its opening weekend.
In June, The Incredible Hulk, starring Edward Norton will be released. The back-to-back releases from Marvel is a strategy to create a buzz surrounding the Marvel characters. Apparently, the Iron Man character will be making an appearance in The Incredible Hulk to cross-promote the movies. Iron Man 2 is scheduled for April 2010. Future films from Marvel will be Thor, Captain America, and The Avengers.
I’m a fan of the movies and think that Marvel’s strategy should pay off for investors.
I am continuing to be intrigued the more I read about Ctrip.com. After the recent decline, it is a more attractive buy. Zacks.com has a buy rating on the stock. The stock has a very high P/E but if you are looking for exposure in China’s growth, this might be your option. As the middle class of this enormous country grows, more and more Chinese will travel and Ctrip.com will be where most of them book their travel.
I am considering buying a position at the current price and will definitely be buying on any further declines.