The company also licenses its characters to makers of movies, TV shows, clothing, video games, and other products such as toy action figures. Annual revenues are currently $390 million.

Fasciocco explains, "Technically, the stock looks good long-term. After climbing from the 16 level, the stock is now in a 10-week, cup-and-handle base. The base is well defined between 30 and 26. The stock's momentum indicator is bullish."

What most impresses the adviser is that the accumulation - distribution line recently hit a new peak. He notes, "We see that as indicating money is coming into the stock and that MVL is well placed to stage a breakout."

Meanwhile, he believes that the company is poised for an earnings turnaround. He notes that Wall Street analysts are currently predicting a 127% rebound in profits in 2007. He also observes that the stock currently sells with a price-earnings ratio of 19 based on projected 2007 net. He sees that multiple as reasonable.

Fasciocco is also impressed with the institutional ownership of the company, noting that the largest fund holder is 5-star rated Janus Growth & Income Fund with a 4.6% stake. The largest recent buyer, he says, was 4-star rated Oppenheimer Small and Mid Cap Value Fund, which purchased 1 million shares. Also, he notes, 5-star rated Baron Small Cap Fund picked up 700,000 shares, while the company's CEO Isaac Perlmutter owns 28% of the stock.

The adviser recommends the stock for aggressive investors, and suggests starting with a partial position. He would then add to one's position on a breakout above the 30 level.

Steven Halpern follows the financial newsletter advisors and features their latest stock ideas each day on his free website, TheStockAdvisors.com.