Wednesday was a nightmare for DreamWorks Animations (DWA).
Shares of the media giant dropped nearly 9 percent, making it the company’s second worst day since its 2004 IPO, after it missed first-quarter earnings and revenue estimates. The loss was largely due to an impairment charge of $57 million dollars related to the weak box office performance of their latest film “Mr. Peabody & Sherman.” In a year when media stocks have been hot, DreamWorks’ performance has been anything but. Its stock is down over 30 percent this year, while Lions Gate has lost around 16 percent, proving true the old adage that there really is no business like show business.
But despite the sell-off, John Kosar of Asbury Research sees a buying opportunity.
“We’re into some really nice support right around $23 dollars per share,” Kosar said. “I think this is a place to look for value and opportunity. I would wait to see if we hold in here the next couple of days. If we do, I think we could bounce back to at least $26.50 per share.”
Editor’s Note: DWA stopped on a dime at $23.00 per share twice, on the day of John’s appearance on April 30th and again on May 8th before rising to as high as $26.57 per share yesterday, May 20th, meeting John’s $26.50 target for a 15% gain in 3 weeks.
View the video of John’s appearance below.