Media Investing: The Spark that Wasn't
By Bryan Bottarelli
In this article
Warner Brothers Pictures' “300” registered over $70 million in opening weekend box office receipts.
Shares of TWX are trading lower by $0.08 cents today.
Why it's always smart to abide by what the charts are telling you…
It's yet another disappointing day for shareholders of Time Warner (TWX:NYSE).
Here's what happened…
Film distributor Warner Brothers Pictures -- which is owned by Time Warner -- scored a massive box-office win this weekend when its epic blood-splattered movie “300” registered over $70 million in opening weekend box office receipts.
This $70 total far exceeded the highest-level expectation of $50 million. And in fact, it was the largest opening-day tally ever for a rated R movie in the month of March.
The numbers were so strong, in fact, that “300” now ranks as the third-highest R-rated opening day total behind only “The Matrix Reloaded” ($91 million) and “Passion of the Christ” ($83 million).
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Coming into the weekend release, Hollywood experts had predicted that the movie's graphic decapitations and battlefield carnage -- combined with the largely unknown cast -- would turn off the all-important female demographic. But that certainly was not the case. Not even close.
Media Investing: Upside Capped at Current Levels
Apparently the combination of unique cinematography and the gruesome storyline of 300 Spartan warriors fighting to the death in the Battle of Thermopylae was enough to buck the odds and score a big-time winner over the weekend.
But here's what I find interesting. Even after such a bullish surprise, shares of TWX are trading lower by 8 cents today. In other words, Wall Street can hardly care about Time Warner's big weekend success -- making the stock's upside all but capped off at current levels.
Of course, our WaveStrength chart forecasting had already predicted this action weeks ago -- which is why Adam and I are currently holding TWX puts in our WOW service.
It's just another example of perception versus reality -- and why it's always smart to abide by what the charts are telling you (even if conventional wisdom signals otherwise).
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Related Resources
Heads Rolled: "300" racks up record body count at box office. - Reuters.com
TMX: Summary for Time Warner, Inc. - Yahoo!Finance