Tuesday, May 05, 2009
Dave Mock :: Townhall.com Columnist
A Big Upgrade for DreamWorks
by Dave Mock
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Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track records of the firm behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 130,000 members, many of whom demonstrate better investing insight than published analysts do.

More top-performing CAPS members are warming up to DreamWorks Animation (NYSE: DWA) stock these days, bumping up its long-held three-star rank to a more formidable four stars. A total of 521 members have given their opinion on the animated film studio, with many offering analysis and commentary to explain their recent optimism.

In the tough retail environment, where sluggish DVD sales have plagued studios such as Disney (NYSE: DIS) and Time Warner (NYSE: TWX), blockbuster titles continue to hold up well for DreamWorks Animation. While its fourth quarter failed to inspire investors, a big contribution from animated titles such as Madagascar: Escape 2 Africa helped push first-quarter 2009 revenue up 68% to $263.5 million, more than doubling earnings.

Its first 3-D film, Monsters vs. Aliens, rolled out in multiplexes and IMAX (Nasdaq: IMAX) theaters recently, and has reached $320 million gross worldwide so far. All future DreamWorks movies will be released in 3-D, which could allow the company's films to command higher ticket premiums, as more cinemas are installed with 3-D technology from Texas Instruments (NYSE: TXN).

Despite slow performances in Germany, France, and Italy, Monsters vs Aliens is set to become a franchise, according to the company. Already, there's a video game by Activision Blizzard (Nasdaq: ATVI) based on the movie, and a TV series is being developed. A Halloween TV special is also in the works, to air on General Electric 's (NYSE: GE) NBC this fall, and CEO Jeffrey Katzenberg noted that the company has even more exciting things coming.

To see what the very best CAPS analysts are saying now about DreamWorks -- and discover the other winning stocks they're picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.

More Foolishness:

blew the market awayThe next animated blockbuster? We'll see in May.Strong brands hold serious power...and profit
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About The Author

Dave Mock is a Motley Fool contributor.

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