Today's events

(Just as a side note: This morning I was writing an article about Marvel, which I'll cover in a sec, and then my Blogger page froze and I lost it. Now that the rest of the day has already gone by, there are more earnings/highlights I want to touch on.)

First things first. Marvel. This morning, Marvel (MVL) reported third quarter earnings that were significantly lower than expectations, citing lower toys and licensing sales. Well Marvel, they do make up 60% of your business. I'd say it's probably a big deal. Shareholders were right to dump the stock, falling 22% to a new 52-week low of $14.06. As a Marvel shareholder, I'm not particularly pleased with the poor performance. But on the other hand, I understand that you can't always have stellar earnings. I'd rather you disappoint me once in awhile, than to super disappoint me with the revelation of fraud (<- part of the Oracle of Omaha's philosophy). I'm disappointed, but not to the point of selling. Marvel is still a great company, with more prospects in the coming years. Going into 2005, I knew it'd be somewhat of a dud year for Marvel - they only released two movies this year. 2004 was more outstanding, with Spider-Man 2 as their summer blockbuster, and the subsequent toy sales associated with the ever popular Spider-Man.
But on a brighter note, the board of directors approved a $250 million share buyback. Marvel's Chairman, Morton Handel, commented, "We believe repurchases will be accretive to earnings and will provide a very attractive long-term return on investment as we proceed beyond 2006. Those years will include the release of both the Spider-Man and Fantastic Four sequels in 2007 and the anticipated launch of Marvel's own film slate starting in 2008." I agree. With investing, sometimes it's good to focus on the long-term. If you really believe in your company (like I do), then short-term ups and downs don't matter.

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However, short term ups are always funner. Speaking of which, Pixar (PIXR) reported $0.22 diluted eps (versus analyst expectations of $0.11). Pixar's shares shot up 11% to a new 52-week high of $56.59. Short-term investors will probably take this chance to cash out and send the shares down in the next few days. But for the long-term, Pixar still has one major strength: It ensures quality over quantity. Not to knock Dreamworks Animation around or anything, but I like knowing that the one single movie that Pixar releases a year (except for this year) is complete quality from beginning to end.

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Whole Foods Market reported earnings after the bell today. They incurred charges related to share-based compensation and natural disasters that made eps drop to $0.13 a share from $0.45 a share a year ago. The $0.13 eps was significantly lower than the expectations of $0.53. But it's not all bad news for Whole Foods. The board of directors approved:

• a $200-million, 4 year stock buyback plan
• a 2-for-1 split, to be distributed on December 27, 2005, to shareholders of record upon closing on December 12, 2005
• a 20% increase in quarterly dividends, bringing it to $0.30 a share
• a one-time special dividend of $4.00 (both dividends will be paid on January 23, 2006, to shareholders of record upon closing on January 13, 2006).

I'll give you a minute to reflect all of the board's activities. But let me just say, I love special dividends. It makes me feel like I own preferred shares or something. :) You should notice that the stock split happens before the special dividend record date. So in essence, if you're already a shareholder (and I am), you'll be getting double the special dividends.

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Okay, what began as a mini-update on a few stocks has turned into a ridiculously long blog. Have a great day.