10/4/12 Picks

Dermot Mulroney - DMULR

Dermot Mulroney's newest film Trade of Innocents, which will be released this weekend, is not expected to make much money at the box office (it is currently trading at $1.19 per share, down from $2.18 earlier this week).  Yet because DMULR is trading at an artificially low price, there is an opportunity to make a quick gain by buying DMULR.

DMULR is currently trading at $17.89 per share, with a TAG of $21,791,512.  When the stock adjusts 12 weeks after this Friday's release of Trade of Innocents, the 2011 film Love, Wedding, Marriage will fall out of TAG range, bringing its anemic $1,378.00 in box office grosses with it.  This means that even without any grosses from Trade of Innocents added in, DMULR will adjust to $21.79, a gain of $3.90 per share (21.85%) in only 12 weeks.

Once DMULR adjusts in 12 weeks, you can sell off the stock and take a nice little gain.  If you're willing to hold onto the stock awhile longer, more profits almost certainly lie ahead, though not guaranteed as with the first part of this recommendation. In March, 2013, the film Stoker will be released, currently trading at $16.89.  This will push The Family Tree out of TAG range, knocking only $3,658 off of the value of DMULR.  If Stoker grosses what HSX traders currently predict, this would push DMULR up an additional $3.37 per share over two months.