Defamer Stock Recommendation: Sell DreamWorks Animation SKG
DreamWorks Animation has taken the next, crucial step to position itself as the new Disney, inspiring its first shareholder lawsuit for "misrepresenting DVD sales of Shrek 2":
The lawsuit filed in Los Angeles federal court says DreamWorks Chief Executive Jeffrey Katzenberg and board Chairman Roger Enrico failed to disclose in the first quarter that sales of "Shrek 2" DVDs were declining far more than expected.
The suit says DreamWorks continued to ship the title "far in excess of the actual demand" and hid the fact that retailers were returning "massive amounts" of unsold DVDs.
Disclaimer: The knee-jerk "Sell Dreamworks Animation SKG" stock recommendation in this post's title is for "entertainment" only and should not be the basis for any securities transactions. For all we know—our portfoilio currently boasts one savings bond from our First Communion—this is a great time to buy DWA.N; eventually, Jeffrey Katzenberg's going to figure out a new way to stroke Shrek's ogre cock and "open up a new revenue stream."
