Expert: Dr. Joseph de Beauchamp - 7/15/2005

Question
Well, I am interested in investing in some steady stock for the long haul, and have always understood that you should go wtih something you know a little about.

I'm in the 3D animation business myself, as well as being based in San Francisco very near to Pixar's studios (in fact I work just up the road). This is why I'm interested in Pixar in particular. In addition, this is a hugely successful company with five hit films out of five under its belt. Their next one, "Cars", looks to be just as good.

KNowing all this, would you still advise me to stay away?

Thanks.-------------------------
Followup To
Question -
Would this be a good time to invest in Pixar stock? It appears to be dropping. I've been following its stock price for some time. How do you decide when to buy?

I'm a total novice.

Thanks.

Steve
Answer -
Based on discussions with distribution partner Walt Disney Co. (DIS: news) and information from video resellers, Pixar (PIXR: news) has determined that sales of "The Incredibles" will fall about 7% short of its previous projections. This is why the stock is off.

I think this is a very slow stock. Yes, it is off some, but very well followed. You would not discover anything that the street does not already know. If stocks are something for you, I would still stay away from this boring stock.

Dr. Joseph de Beauchamp

Answer
Earnings Estimates
Last Updated: July 16, 2005

Period Period End Mean EPS # of Estimates Year Ago Actual
Q1 Jun 05 0.10 17 0.67
Q2 Sep 05 0.14 15 0.46
Q3 Dec 05 0.17 15 0.19
Q4 Mar 06 0.09 3 0.32
P/E Ratio: 39.98
Consensus Recommendation: Hold
5-Year Growth Rate: 29.43


It appears that the other analysts think the same way. They put it on hold at best. If you have to buy this, I would await for a technical correction to $33 and not a cent higher.

Dr. Joseph de Beauchamp