Joystiq has your stash of criminally complete GTA IV news!

AOL Money & Finance

Chasing Value: Marvel's Iron Man will be HUGE!

What is harder to get than good Lakers play-off tickets? An invite to the pre-release cast and crew screening of the new Iron Man movie!!

Last night I had the privilege of being one of the first to see Iron Man, the first film produced by Marvel Entertainment Inc. (NYSE: MVL), not one of the major studios. Although it wears the Paramount Pictures label and Paramount will be distributing the film, this one is Marvel all the way.

My colleague Steven Mallas reported last month about Marvel's super earnings report and come this Monday when the weekend box office tallies are in, I expect Iron Man to be at the top of the charts. In other words, IRON MAN WILL BE HUGE!

Although the cost of production and promotion reportedly shot past $200 million, I can tell you that they got it all on the screen. So much so that I write with excitement for movie enthusiasts (me), baby-boomer fans of Marvel comics (me again) and my two sons who accompanied me last night (me, them), and I want to add an exclamation point to every sentence!

If my sons are any indication of how big this movie will be then you can expect Marvel (and its financial backers) to be green-lighting sequels two and three early next week, if not on opening night. And before Iron Man blasts onto the big screen this weekend my sons will be blasting their opinions on campus today. Another movie franchise has been born and this time Marvel should reap the rewards.

The story, acting, special affects, intrigue, music, beginning, end and almost everything in between is well done. Iron Man is edgier than Spider Man and although I would not recommend it for very young children I think the producers and directors managed to avoid going over the edge.

Iron Man is made for marketing as well as entertainment and the brand extensions and licensing of products and images could be as big as the film receipts.

In the latest March report, company insiders have been been buying stock, and unless this is another sinister plot they have cooked up then they feel good about upcoming attractions. Yesterday, Marvel closed up over 2% to $29.40, very close to its 52 week high of $30.27.

The stock is as intriguing as the movie in some respects. The P/E ratio at 18 is higher than the market average but not outrageous for one with Marvel's potential. Net profit margins are almost 30% while ROE and ROIC should be further reviewed, since AOL Money & Finance is reporting staggering figures over 60%.

To get a taste of the fun to come, take a look at the Iron Man movie trailer.

UDATE SUNDAY MAY 4, 2008: Iron man was HUGE bringing in over $100 million in receipts its first weekend and attaining the 8th highest opening to date.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I hold no position in MVL as of this writing -- but I am considering buying it.


Related Posts

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br> tags.

New Users

Current Users

Symbol Lookup
IndexesChangePrice
DJIA+152.2511,384.21
NASDAQ+51.122,294.44
S&P 500+21.391,273.70

Last updated: July 09, 2008: 08:32 AM

BloggingStocks Exclusives

Hot Stocks

BloggingStocks Featured Video

TheFlyOnTheWall.com Headlines

WalletPop Headlines

AOL Business News

Latest from BloggingBuyouts

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

Weblogs, Inc. Network