Please don't flame, but the stock *has* taken off. 100%+ gain in 1 year counts as an outstanding return, especially since absolutely no real new information came out in the past year, except that TSII would be a theater release.
Pixar seems to be doing well, and they should have no problem supporting a price of 100 in a few years when earnings are closer to $3/share. However, it'll take time to get there.
The important thing about ABL is not the immediate take, but its staying power. If kids are still buying ABL toys 5 years from now, then that will prove the recurring value of animated movies and Pixar's business model of building a digital studio.
Given the success with TSII, it seems reasonable that there will be sequels, probably Direct to Video for ABL.
Also, I imagine that at some point Pixar will start doing 30-minute after-school cartoon series for Disney at some point, if their franchises are successful. |
