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Murray Stahl's Horizon Kinetics on DreamWorks Animation
Posted by: Grass Hopper (IP Logged)
Date: January 18, 2014 08:47AM
DreamWorks Animation, about the 3rd largest holding in the Core Value strategy, more than doubled this year, and is about 35% higher than when the position size was increased this past June. Yet, I believe that the shares are cheaper today than they were 12 or 18 months ago. Until then, DreamWorks did one thing: it made animated movies, and it was analyzed and valued as such. We thought it did two things: the movie making and, over time, the building of its movie library, which may be valued separately and had the characteristics of a dormant asset. Here’s what has happened in the past 18 months or so, none of which has yet had time to make an appreciable, visible impact upon revenues or earnings:
Now, how much in earnings are those worth to a company with a stock market value of still less than $3 billion?
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