What I'm Trading

Monday, May 10, 2010

The New IRON MAN 2: TOY STORY 3

In my neverending quest for value, I began to worry after the wild success of having shorted IRON MAN 2 before this opening weekend. Where would I find my next big score? Would there be anymore golden geese to lay golden eggs I could find ahead of the market?? Ladies and gentlemen, I give you...TOY STORY 3.

Ah...there's more than a snake in Woody's boot! Currently trading around $355, TOY STORY 3 may be even more grossly overvalued than IRON MAN 2 ever was, if you can even fathom such a premise. The original TOY STORY made $191 million domestically over the life of its run. TOY STORY 2 made over $245 million over the life of its run. Ten years ago.  Even if you adjusted for inflation, TS2 would've made that $380 million of 2010 dollars in 143 days.
Get the theme here?

Although a month removed from the premiere of SHREK: THE FINAL CHAPTER (or whatever they're calling it this week), TS3 will be hard-pressed to crack $200 million in 24 days, let alone $300. 


I hate to go to the well again, but here goes my bucket: Only four films in the history of Hollywood have grossed $350 million in their first 24 days. DARK KNIGHT, AVATAR, PIRATES 2, TRANSFORMERS 2 - that's the list. Now SHREK 2 managed $353 million in 26 days. But it didn't take a decade off between its predecessor either like TS3. 


The moral to my babbling? Get short on TOY STORY 3 now. Like yesterday. Go in a time machine if you can, back a week or so and grab it when it was over $360. I can't get short enough on this derivative. I'm pulling profits from other films just so I can dump it into shorting TS3. It's at least $100 overvalued, if not more. JCC's official target is $229.50, or $229.5 million after 24 days. Hell, anything over $250 a share is begging for this stock. Feel free to short it all the way down to $300. Plenty of value there, especially if you're one of the ones who ignored my calls in the wilderness about shorting IRON MAN 2. 


It's quite alright. Plenty of room on the bandwagon. Get TOY SHORTY today.

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