9/18/09 Picks Part 2

MGIBS - Mel Gibson

Some of the best sure-things on HSX can be found with starbonds of those who take a long time between projects (such as film directors). This long break causes people to sell their shares, driving down the price. Once the price gets low enough, the stock can be an easy way to pick up cash.

Mel Gibson has not had a film since 2006's Apocalypto, but in January, 2010 he will star in Edge of Darkness, his first role since 2003's The Singing Detective. Whether Mel can still carry a film to box office success remains to be seen, but even if Edge of Darkness doesn't make a dime, there is big profit to be made.

The current trade price for MGIBS is $70.58, a full $50.88 below his TAG. Though Edge of Darkness is knocking the $78 million grossing We Were Soldiers out of TAG range, the price for MGIBS is so low that a large profit will be made. When the TAG adjusts, MGIBS will reach $105.83, a gain of $35.25 per share (33%) in under half a year. If you can afford 50,000 shares of MGIBS (a cool $3,529,000), you will walk away with a minimum profit of $1,762,500, absolutely risk free. And if Mel still has his mojo, the profit will be even bigger.