Thursday, December 17, 2015

Julie Walters - HSX Pick of the Day for December 17, 2015

It's been more than four years since the final film in the Harry Potter franchise was released, but for the savvy investor, Harry and his friends still offer great opportunities for easy and guaranteed money on the HSX market.

Julie Walters (JWALT) appeared as Molly Weasley in the Harry Potter Series, and since the release of the last film has popped up in just four additional credits, most recently this year's Brooklyn.  Brooklyn will de-list for somewhere between $15 and $18 million on December 22nd, and will enter JWALT's TAG range and push Gnomeo and Juliet out of TAG range.  Gnomes and Juliet grossed $99,908,609, so even if we assume that Brooklyn tops out at $18 million, that's a difference of $81,908,609, or $16.38 in TAG value, dropping her TAG from $132.67 to roughly $116.29.  JWALT is currently trading at $130.84, offering a gain of $14.55 (11%) per share in just one week to anyone savvy enough to short stock in JWALT.

As if that wasn't attractive enough, more profits are almost certainly on the horizon.  The next film to fall out of TAG range is the final Harry Potter film, which grossed more than $381 million.  While the Hollywood Stock Exchange does not list her next film (she has been busy shooting Indian Summers), assuming that Ms. Walters appears on screen again, her next film will almost certainly drop the value of JWALT dramatically as Harry Potter is pushed out of TAG range.  The worst case scenario for an investor is that her next film grosses north of $250 million, which would keep her stock at exactly it's post-December 22nd price.  Even if her next film was enormously successful and grossed $150 million, that would cause a drop in value of $30 per share, a gain to short sellers of roughly 26%.  It might take awhile to collect, but with such a significant potential gain, investing in JWALT is a no brainer.

One more note: JWALT's next film to fall out of TAG range after Harry Potter is Brave, which brought home more than $237 million for Disney.  Short selling JWALT will almost certainly offer big money for a long time to come.

RECOMMENDATION: Short as many shares of JWALT as you can afford, and hold onto them for a long time.