Are you watching POWN? It’s up 187%. This extremely light trader that did not even punch past 3.5 cents last week has hit an intraday high of $0.116 on 1.4 million shares.
This is the penny stock that has “Stan Lee” in almost every headline lately.
Let’s see a couple of those:
Stan Lee’s Pow! Entertainment’s First Mobile Game, Verticus Is Available Now On The App Store
POW! Entertainment Releases a Message from Its Chairman Stan Lee
Stan Lee’s POW! Entertainment And Moonshark Partner On Verticus, Lee’s First Mobile Game
Doe this stock have real value?
There’s 133,107,356 shares issued on authorized shares of 250 million. (Plenty of room to grow, right?)
A look at some of the recent selling points (or buying points should I say) in the latest Awesome (Penny) Stocks alerts:
Disney just cannot stop buying companies. Apparently the guys at APS just noted that POWN signed some kind of agreement in 2009. It is a “first look” agreement that is said to give Disney’s Silver Creek Pictures first dibs on any Stan Lee project. That means to AWS that POWN is a buy-out candidate.
Let me ask you this: How does someone buy a company that is basically the creative talents of one man and a company that would be considerably less valuable without him? And – he will be 90 later this month.
My Take:
Again – Stan Lee will be 90 years old on December 28th. Never forget that.
Yes, it is potentially worth more than the current $15.5 million market cap it reached today. Disney did spend 2.5 million for just ten percent in 2010, so they do see real value. I would likely not put it at more than ten times that cost basis as applied to the rest of the shares, so let’s say a market cap of $25 million or a maximum price of $0.18 per share.
But do note that this stock is highly illiquid when not being promoted. That means the price will fall. Picking it up at anything above Friday’s close is a great risk.
If your goal is a long term hold, wait for the promo to go away and then jump in for shares. If your goal is a quick trade profit, play at your own risk. Pesonally, I would never buy shares of POWN for on a short-term, intermediate term or a long term hold.
Good luck!