{"id":86681,"date":"2009-12-17T09:37:00","date_gmt":"2009-12-17T14:37:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/avatar-is-so-good-you-shouldnt-short-news-corp-stock-2009-12"},"modified":"2009-12-17T09:37:00","modified_gmt":"2009-12-17T14:37:00","slug":"avatar-is-so-good-you-shouldnt-short-news-corp-stock-nws","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/86681","title":{"rendered":"Avatar Is So Good, You Shouldn&#8217;t Short News Corp. Stock (NWS)"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4b2a335f00000000006f084e&amp;maxX=342&amp;maxY=256\" border=\"0\" alt=\"avatar\" width=\"342\" height=\"256\" \/><\/p>\n<p>Avatar will drive &#8220;incredible excitement&#8221; in the months to come, says Pali Research&#8217;s Rich Greenfield.<\/p>\n<p>Because of that, Rich upgraded News Corp. from a sell to neutral in a note this morning.<\/p>\n<p>Greenfield says the risk\/reward of shorting News Corp. after seeing a screening of Avatar is not appealing.<\/p>\n<p>He writes, &#8220;the honest truth is that nobody in the world has ever seen a movie like Avatar.&#8221;<\/p>\n<p>While the movie probably won&#8217;t generate huge profits, it will not be a disaster, profit-wise, he says. Fox&#8217;s film slate overall is looking good.<\/p>\n<p>Here&#8217;s Greenfield:<\/p>\n<ul>\n<li> Earnings estimates are going higher, even without outperformance in film. As  shown in Exhibit A, our revised estimates now assume high-teens organic  operating income growth in fiscal (June) 2010, well above management  guidance of high-single to low-double digit growth, albeit largely discounted in  the stock. In addition, we believe EPS will be $0.86 now, versus street  consensus of $0.81 (our prior estimate was also above consensus at $0.82). <\/li>\n<li> Our short thesis had been premised on the lack of growth post-FY2010 (we are  still expecting flat EPS in FY11, albeit off a higher base). However, with  earnings heading higher, shorting for an FY11 earnings miss simply feels  pointless.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.businessinsider.com\/avatar-is-so-good-you-shouldnt-short-news-corp-stock-2009-12#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/james-camerons-avatar-costs-almost-500-million-2009-11\">James Cameron&#8217;s &quot;Avatar&quot; Could Burn Through $500 Million<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/twitter-avatar-gate-rolls-into-day-ii-2009-9\">Twitter Avatar-Gate Rolls Into Day Two<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/james-camerons-avatar-not-as-expensive-as-originally-stated-2009-3\">Psych! James Cameron&#8217;s &quot;Avatar&quot; Not As Expensive As Originally Stated<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/Rc2AvKYIy5Q\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Avatar will drive &#8220;incredible excitement&#8221; in the months to come, says Pali Research&#8217;s Rich Greenfield. Because of that, Rich upgraded News Corp. from a sell to neutral in a note this morning. Greenfield says the risk\/reward of shorting News Corp. after seeing a screening of Avatar is not appealing. He writes, &#8220;the honest truth is [&hellip;]<\/p>\n","protected":false},"author":504,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-86681","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/86681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/504"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=86681"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/86681\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=86681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=86681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=86681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}