{"id":29146,"date":"2012-04-18T16:30:40","date_gmt":"2012-04-18T20:30:40","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/04\/ddmg-dont-buy-the-hype-behind-tupacs-hologram\/"},"modified":"2012-04-18T16:30:40","modified_gmt":"2012-04-18T20:30:40","slug":"ddmg-dont-buy-the-hype-behind-tupacs-hologram","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/04\/18\/ddmg-dont-buy-the-hype-behind-tupacs-hologram\/","title":{"rendered":"DDMG: Don\u2019t Buy the Hype Behind Tupac\u2019s \u201cHologram\u201d"},"content":{"rendered":"<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-28988\" title=\"DDMG: Don\u2019t Buy the Hype Behind Tupac\u2019s \u201cHologram\u201d\" src=\"http:\/\/www.investmentu.com\/wp-content\/uploads\/2012\/04\/ddmg-tupac-hologram.jpg\" alt=\"DDMG: Don\u2019t Buy the Hype Behind Tupac\u2019s \u201cHologram\u201d\" width=\"220\" height=\"220\" \/><\/p>\n<p>Digital Domain Media Group (NYSE: DDMG), the company behind the CGI image of Tupac, is flashing some powerful warning signs right now. Approach with caution.<\/p>\n<\/div>\n<p>Tupac\u2019s ghostly appearance at the Coachella Valley Music and Arts Festival last weekend may have ushered in a new era of entertainment\u2026<\/p>\n<p>Imagine being able to attend a \u201clive\u201d performance of Jimi Hendrix, Elvis Presley, or any other fallen legend.<\/p>\n<p>Such visions of the future sent <strong>Digital Domain Media Group, Inc.<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=DDMG\" target=\"_blank\">DDMG<\/a>), the company behind the CGI image of Tupac, soaring more than 20% since Monday.<\/p>\n<p>But make sure you do your homework before buying into the hype here. I\u2019m not saying DDMG isn\u2019t an intriguing company to watch going forward, but there are some powerful warning signs flashing right now.<\/p>\n<h2><strong>Not So Fast\u2026<\/strong><\/h2>\n<p>Here are a few reasons why it\u2019s best to take a wait-and-see approach with DDMG:<\/p>\n<ul>\n<li>Digital Domain Media Group is being touted as \u201cthe company behind the Tupac Hologram.\u201d Which is the undoubtedly the cause of the 20% run-up this week. However, this is only a half-truth. First, as Ars Technica reported, the image wasn\u2019t technically a hologram at all. It was a slick illusion using an age-old theatre technique called Pepper&#8217;s Ghost. And the company that projected the image is Arizona-based private company AV Concepts, Inc. The two companies worked closely to create the illusion with Dr. Dre as the mastermind and financial backing behind the endeavor.<\/li>\n<\/ul>\n<ul>\n<li>Although there are already rumors this technology is going to spur a tour including the virtual Tupac, the performance at Coachella was reportedly in the six-figure price range. This high cost will eventually come down, but for now this is something that would have to be saved for a few huge festivals or stadium performances. Meaning it isn\u2019t likely to create a big fad in the near future.<\/li>\n<\/ul>\n<ul>\n<li>Digital Domain Media Group isn\u2019t new to this sort of thing. The company was founded by three men, including none other than film-director James Cameron in 1993. It\u2019s already won a slew of Academy Awards for its digital renderings and special effects. But despite the success and longevity, it isn\u2019t currently a profitable endeavor. That should be a major warning sign to investors.<\/li>\n<\/ul>\n<ul>\n<li>When DDMG IPO\u2019d late last year, it reached more than $7 per share on its first day. Since then it hasn\u2019t even come close to that level \u2013 its still under $6.50 even after the recent 20% bump. One reason for this is that earnings have been horrendous. The company had a precipitous drop in annual earnings for 2011 and didn\u2019t even bring in a gross profit in the final two quarters of 2011.<\/li>\n<\/ul>\n<p>This stock is obviously just rising on the news alone and that bump likely won\u2019t last much longer. As <a title=\"Alex Green Archives\" href=\"http:\/\/www.investmentu.com\/investment-experts\/alex-green-archives.html\">Alexander Green<\/a> has stated over and over, the only thing that actually pushes stock prices higher in the long run is earnings growth, and right now DDMG is actually experiencing earnings shrinkage \u2013 making it an intriguing short candidate.<\/p>\n<p>That being said, it\u2019s a company that\u2019s very good at what it does and one reason earnings are terrible is because of all the projects it\u2019s trying to push forward over the next few years. So it\u2019s worth the watch \u2013 and possibly an entry if the price gets low enough \u2013 but investors should definitely avoid this run-up.<\/p>\n<p>Good Investing,<\/p>\n<p>Justin Dove<\/p>\n<div>\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=zatF5SDGUhw:CULyXSdUOio:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=zatF5SDGUhw:CULyXSdUOio:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=zatF5SDGUhw:CULyXSdUOio:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=zatF5SDGUhw:CULyXSdUOio:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=zatF5SDGUhw:CULyXSdUOio:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=zatF5SDGUhw:CULyXSdUOio:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=zatF5SDGUhw:CULyXSdUOio:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=zatF5SDGUhw:CULyXSdUOio:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/zatF5SDGUhw\" height=\"1\" width=\"1\" \/><\/p>\n<p>Article by <a href=\"http:\/\/www.investmentu.com\/\" target=\"_blank\">Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article by Investment U Digital Domain Media Group (NYSE: DDMG), the company behind the CGI image of Tupac, is flashing some powerful warning signs right now. Approach with caution. Tupac\u2019s ghostly appearance at the Coachella Valley Music and Arts Festival last weekend may have ushered in a new era of entertainment\u2026 Imagine being able to &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2012\/04\/18\/ddmg-dont-buy-the-hype-behind-tupacs-hologram\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;DDMG: Don\u2019t Buy the Hype Behind Tupac\u2019s \u201cHologram\u201d&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-29146","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=29146"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29146\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=29146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=29146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=29146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}