Well, I've finally done it. I sold my entire position of Marvel Entertainment (NYSE: MVL). It wasn't an easy decision.
When I covered Marvel's latest earnings report, I alluded to the issue of emotion. My emotion, to be specific. I stated that it most likely would be in my best interest to get out of the stock since there really weren't many catalysts coming up in 2009 to propel the stock higher.
In fact, it would be easy to make the argument that, since the market has been so haywire and irrational, one must take profits when one has a profit to indeed take. Marvel is just such a stock in my portfolio. I have several paper losses, but Marvel retains its green status on my board. I love the company's story on a long-term basis, absolutely adore it, but I think it is incumbent upon every trade and investor to build a cash stash that can be used for opportunities the market may throw their way.
The Marvel position that I liquidated on Tuesday was one I owned for quite a while. It had a nice profit attached to it. I feel good about preserving that capital, especially since Marvel is lower today (at least, it's lower as I write this; as we all know, that could change in a heartbeat).
I have no intention about forgetting Marvel. Although I cannot predict how stocks will ultimately move (no one can), my best opinion at this time is that Marvel's shares will trend lower. Perhaps even sharply lower. I'll be watching the stock and will look to enter it again later on. The company will be making more movies, and I'll want to be a part of that. The sequel to Iron Man is scheduled for 2010, as is Thor. Marvel has a good partner in distributor Viacom (NYSE: VIA), and it should prosper over time. So, yes, I'll want back in. I believe, however, that the decision to sell out of Marvel to capture a profit was a good decision all things considered.
Disclosure: I don't own any company mentioned; positions can change at any time.
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Reader Comments (Page 1 of 1)
11-19-2008 @ 6:59PM
Dan Barnett said...
It is hard to argue with cash in your pocket. Especially so now, so I think you made the right call.
But, MVL also has a Captian America movie due in 11 (I think) so when do you think returning will make sense (& money)?