Thursday, September 17, 2009

9/17/09 Picks

MFREE - Morgan Freeman

Later this year Morgan Freeman will star in Clint Eastwood's Invictus. This will push Feast of Love out of TAG range. His per-share price is $85.97, while his TAG is $100.31. Since Feast of Love grossed only $3,504,875, MFREE will shoot up once it adjusts. Not taking into account the grosses of Invictus, MFREE will reach $99.61, a gain of just under 14% in about 3.5 months. Buying 20,000 shares of MFREE will cost you $1,719,400, but the walkaway price is a guaranteed $1,992,200. The stock stands to gain much more, though, since Invictus could be a big grosser. With early Oscar buzz, a cast of Morgan Freeman and Matt Damon, and Clint Eastwood at the helm, this could make big gains on top of the guaranteed gains.

The average gross for Clint Eastwood directed films since 2000 is $67.29 million, with an average of $43.29 for films he does not star in. If Invictus matches the average of Clint's films that he does not star in, it would add $8.66 per share to MFREE's guaranteed price of 99.61, totaling 108.27. If the film only matches his lowest grossing film of the past decade, Letters from Iwo Jima, $2.75 per share will be added, totaling $102.36, a 16% gain from the current price. MFREE is a great buy for a 3.5 month turnaround.

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