Dave, first I am long PIXR stock so don't get me wrong. But the shorts have some valid points. First, most shorts will admit that PIXR is great company, just overvalued and that PIXR must perform flawlessly to support the valuation. Second PIXR's income is limited to just a few products (movies) and merchandising from these movies. If one of these movies turns out to be a bomb this stock will get crushed, especially since it takes so long to make a movie. No diversification to offset a poor movie, it is all or nothing for this company.
That being said, I am long the following reasons:
Very talented and highly successful management.
Huge insider ownership.
Excellent track record, ABL and TS have been blockbusters at the box office.
Long term partnership with the king of family entertainment (Disney).
ABL video sales starting April 20 is gonna be huge.
TS2 is going to be huge, unless they totally drop the ball. Very doubtful, since they have the same actors doing the voices and creative staff as the first one.
Have faith that future movies will be just as good if not better.
Huge short interest compounded by a low float which could make this stock rocket if the shorts miscalculated this one.
Fridays trading looked like classic blow off, first time in two months volume exceeded 400K. Bought some at 34 1/4 today and saving powder if it breaks 30.
This company is by no means a "sure thing" there a significant amount of risk associated with this company so invest accordingly.
Good Luck,
Rory
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