Marvel Entertainment, Inc. (MVL) has so many characters FatCat have lost track. Recent years, even a non-comic fan, FatCat cannot escape from knowing so many trivial about Spider-Man, X-Men, Hulk, Blade, Daredevil, the Punisher, the Fantastic Four, and more. Even her catnip comes packaged in X-men varieties.
Entertainment business is not like other. The customer’s taste can change in a whim. Marvel seems to have captured a generation with its superhero in action figures, toys, comics and movies. This is more significant because the teens actually have true purchasing power.
FatCat thinks Marvel will out perform S&P because:
- Strong presence of characters in Movies, many with sequels. With the shortage of creativity in Hollywood, adapt an existing super hero means lower risk. Thus the success of Spiderman and X-men.
- More focused, more influncial group of characters--Imagine Disney as "mouse anf friends" without boring news on "ABC".
- No obvious competition. At least right now. And the balance sheets look good.
Conclusion: FatCat would like to buy all Marvel that is available.
