10/1/09 Picks

Cherry Jones - CJONE

When I see a starbond trading nearly $32 a share below its TAG, my first assumption is that the performer was in a huge hit movie that will be moving out of TAG range, and traders are getting out when they can. When this is the case, there is little money to be made unless you buy early. The other likely culprit for these circumstances is a performer who hasn't appeared in a film in a long time, causing investors to sell their shares in order to pursue more lucrative investments. In these cases, if you are able to buy the starbond before the market notices the depressed value of a stock, you can make big money.

Cherry Jones last appeared in 2006's Swimmers, but will be appearing in Amelia in October. While the TAG is currently $107,462,577, CJONE's price is a significantly deflated $75.75. Part of the reason for this is that Amelia will push the very successful Divine Secrets of the Ya-Ya Sisterhood out of TAG range. But even though that film grossed just under $70 million, CJONE is so deflated that there is money to be made, even if Amelia doesn't make a dime. Once CJONE adjusts after the release of Amelia, the stock will reach a price of $93.54, a gain of $17.79 per share. If you max out on CJONE, that's an easy $355,800 in about a month.