Cannes: Theft Leads China Film Group VP To Bow Out Of Keanu … 
UPDATE: Yahoo Board OKs $1.1B Deal To Acquire Tumblr … 
‘Epic’ Toon Begins $14.5M Overseas Rollout 
Cannes: Sony Classics Wins Stateside Rights To Asghar … 
‘Fast & Furious 6′ Breaks Records In … 
Specialty Box Office: ‘Frances Ha’ Triumphs As … 
‘Saturday Night Live’ Season Finale Posts … 
‘Star Trek Into Darkness’ $164.5M Global: Lower … 
Cannes: Backup Media, Memento Bring Heat To Fest Helmer Jim … 
Cannes: Sundance Selects Acquires Dardenne Brothers’ … 
Cannes: Wrekin Hill Acquires U.S. On Gabriele … 
Bill Hader’s ‘SNL’ Stefon Farewell: Video 
Cannes: The Weinstein Co. Books ‘Suite … 
BBC Confirms ‘Doctor Who’ Season 8 
Finally, Cannes Dealing! Radius-TWC Nabs Director’s … 
Hammond On Cannes: Wet Fest’s Official Competition … 
‘Vampire Academy’ Adds ‘Modern … 
RATINGS RAT RACE: ‘Shark Tank’ Finale Up, … 
Cannes: Worldview Options Andrew Dominik’s Marilyn … 
UPFRONTS 2013: The Overachievers 
‘Mike & Molly’ Creator Mark Roberts To … 
UPDATE: Infotainment companies breathed a sigh of relief today as their stocks rallied when market indexes finished Thursday way, way up (Dow +410, S&P +50, NASDAQ +100). Now let’s see if it’s sustainable and if CBS, Disney, Viacom, News Corp and others dependent on advertising revenue can start worrying less. Today’s jump was aided by the SEC rules on naked short-selling that went into effect today and a similar crackdown announced in London. Investors also gave a big thumbs-up to a prpoposal being floated by the federal government to create a Resolution Trust Corp-type entity to take all that toxic debt off financial balance sheets. If implemented, this would ease the current credit crisis and affect Big Media in a very positive way, especially pure-play movie studios. Film financing to help them minimize risk might be reborn. But I’m getting ahead of myself. Let’s take this one day at a time.
GE (NBC Universal) rose $1.71 (+7.41%) to $24.79
Disney rose $1.25 (+3.88%) to $33.44
News Corp (Fox) rose $.54 (+4.23%) to $13.32
Time Warner rose $.21 (+1.53%) to $13.95
Viacom rose $1.42 (+5.79%) to $25.94
Sony Corp fell $.23 (-.72%) to $31.77 because the Nikkei index got hammered.
CBS rose $.63 (+4.19%) to $15.68
DreamWorks Animation rose $1.14 (+3.95%) to $30.00
Marvel Entertainment rose $1.81 (+5.29%) $36.00
- Media Stocks Get Hammered Wednesday
- Big Media Stocks End Tuesday Up & Down
- Yes, Bloody Monday Affected Hollywood
Editor-in-Chief Nikki Finke - tip her here.
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It won’t hold.
Anyone who knows Wall Street is aware that this kind of thing happens all the time. Just when everyone has declared they’re never going to invest again, the stockmarket oh so mysteriously goes up. But only for a short time. Just long enough for people to pour their money into it. Then, like clockwork, the ass falls out of everything all over again.
Anyone who invests in the stockmarket is a damn fool.
Expect some roller-coasting as people buy stocks at bargain basement prices, and then sell them to take their profits when they go up, causing them to go down again, then up again.
This will go on for a while, then things will stabilize once the hysteria dies down.
As much as you may think short sellers are bad for the markets – thank them today because they were the primary demand driver for the strong rip higher not mutual funds or retail investors. It was not due to naked shorting rule (which is already a rule for 99% of all short sellers in real companies) in any of the stocks you mention above. The public has been absent from demand in the past few years (based on mutual fund inflow data) as hedge funds have been the real players in the markets. The big move occured with the RTC type announcement. Throw in Cuomo and others trying to put a halt to short selling in financial stocks. Considering financial firms of all types are reducing leverage I highly doubt credit markets have improved (after one up day in stocks) which will make the hope for film financing low on most financial minded funds/firms priority list. My personal belief as media trader for a hedge fund is that the market has not seen a bottom and media stocks are crappy long term investments. Media companies are generally poorly run with overpaid workers including actors putting out too much money losing crap.