This week's IPO is in a similar situation. His next project is priced in a weird place, where the IPO seems setup for a short.
If the project bombs, then it adds to the profit to be made. If the project does better than expected, then there is no profit.
IPO Price: $4 TAG: $995,745
Films in TAG:
Cyrus (opens 6/18/10)
Hannah Takes The Stairs ($22,509)
MDUPL's next adjust on 9/16/10 will drop The Puffy Chair ($192,467) and add Cyrus (currently trading at $11.86). At current prices, his next adjust would be a .83 point adjust short.
MDUPL would need Cyrus to make 15.22 in order to adjust to his IPO price.
The way this IPO is set up it looks like investing short is the wisest decision. This is a limited movie already priced in the $12 range. Cyrus would need to make 15.22 before any profits could be made by investing long.