View Full Version : GW stock drop question

04-09-2008, 17:11
Looking at yahoo finance, GW had a massive drop off in earn 2005 from 710 to 442. What happened then to cause this?


Templar Ben
04-09-2008, 18:44
Are you asking why the stock price fell so much? I wasn't sure what you meant by earn. Sounds like earning as in earnings per share or something.

04-09-2008, 18:51
holy hell, thats what happens when I don't check what I write.

I meant the value of the stock. To be specific, was there an event that caused this dramatic drop?

04-09-2008, 18:51
Does it not say in the thread that analyses all the money GW have lost?


Warboss Antoni
04-09-2008, 22:26
I beileve it was the fact that Lord of the Rings mostly died, but I'm no financial expert, so idk.

Templar Ben
04-09-2008, 22:44
It happened right after the midterm report was released. That one didn't seem to be out of sorts but there may have been some news that came out.

We have posters that were involved with the stock so perhaps they can shed more light. I will look for something else (like big sell offs).

05-09-2008, 02:35
I think it was just the market responding to the fact that GW as a growth company was over. LOTR was done and there was no big project or license to replace it. The amount of debt they were taking on was beginning to get a bit too large relative to the dividend. As well, if you track their return on capital, I believe there's also a turning point near there as well.

I don't think GW is traded that much by technical traders, but there's a pretty classic breakdown right before the sharp drop. I was expecting a steady decline after that, but then that massive drop happened.

I remember after the last LOTR movie hit DVD, went through it's sales curve over the summer, I was looking for a shorting opportunity on GW's stock but none of my brokerage accounts had both access to the London market, and the abillity to go short or buy long expiration puts on stocks in that market, so I missed the big plunge that would have been a great play. I'm not complaining though, as the money went into oil and precious metals instead.