Lions Gate Entertainment Corporation (NYSE:LGF), A drop of 513,686 shares or 3.8% was seen in the short interest of Lions Gate Entertainment. Even as the interest dropped from 13,665,047 shares on June 30,2015 to 13,151,361 shares on July 15,2015, the days to cover came in at 14. The updated interest stood at 9.5% of the stocks floats. The shares have an average daily volume of 955,052 shares. The information was released by Financial Industry Regulatory Authority, Inc (FINRA) on July 24th .
They are already showing Orange is the Nw Black and are talking about spending 5 billion in developing content next year. SVOD and OTT requires content - where are you going to get the content - make it yourself or look at purchasing it. There is undoubtedly going to be continued consolidation and LGF is sitting in the sweet spot. With the recent runup in share prices of companies like NFLX, AMZN, & FB there could be an acquisition spree in the near future. Just think AAPL is sitting on a cash cushion of 200 billion.
Imagine Netflix buying, Wow - I might as well retire next year. It seems to look good on the surface, but does it make sense from Netflix's point of view? Any opinion Board?
Piper Jaffray analyst James Marsh reiterated an Overweight rating and boosted his price target on Lions Gate (NYSE: LGF) to $45.00 (from $38.00), saying they are incrementally more bullish on film slate and TV.
Marsh commented, "We are updating our model on Lionsgate, leaving us more bullish on the longer-term prospects for the company. Our FY16 EBITDA forecast moves up slightly by 2% to $395M, but is more back-loaded due to the release of fourteen new television series and Mockingjay 2 later this fiscal year. Longer term we like Lionsgate’s feature film release slate (Gods of Egypt, Power Rangers, Odyssey and a possible Twilight extension), plus think the company will find more ways to work more symbiotically with John Malone’s media empire (think Starz, Liberty Global and Discovery). Accordingly, we are raising our FY17 EBITDA forecast by 10% to $480M and representing 22% growth year/year despite earlier worries of a ‘earnings cliff’ in 2017. We continue to be bullish on pureplay content names such as LGF so accordingly reiterate our Overweight rating and our price target moves from $38 to $45."
The firm raised FY 2016 EPS from $1.83 to $1.87 and FY 2017 EPS from $1.98 to $2.21.
The big question here is How much above 36? The trade was put on a few days ago and it will be interesting to see if they're forced to cover if the stock continues to rise.
Couldn't this be a bull put spread with someone looking to collect income by expecting LGF to be above 36 at expiration?
john I am simply looking at the very short term Aug 21st big put spread that is on. As I stated above, someone thinks there will be a short term pull back to the 34-35 area over the next month. It could be a long/short fund manager hedging a big long position. I am long and staying long regardless of any short term pin action. I still believe where getting closer to that pot at the end of the rainbow. Yeah short interest dropped 10% at the end of June. Who knows - if we get really good news everyone covers and it's off to the races. Have a great weekend!
I think the ER should look pretty good and the outlook going forward should be even better with more theatrical leases over this year compared to last. VOD should continue to grow. Having owned he stock for 14 years I also realize that the Long/Short Fund Managers put positions on around ER and always hedge their positions. The manager that did it may be hedging a long position. My point here is someone with a lot of money put a big put spread on for August expiration. If the stock does pull back 3 or 4 points that is not going change how I feel about the stock. I am a LONG and will remain so until the consolidation which I think is coming takes place.
How do you know this? And what is the ER looking like, since that may be the big part of the puzzle?
Well I will say this joe. If you go by the high call ration over the past few years the stock should go up. I think that last reported short interest drop of about 1.5 mil in fifteen days could be a surrender soon.
been waiting over a decade for this pin action. We were already above 38 but didn't close there. Aug 21 expiration might be interesting - someone has a 13,000 contract put straddle on 33/36. If we got a positive ER we should get a pop. My concern is that when someone puts on a position in that amount they usually know a little more than you or I about close in price direction.
"Lions Gate Entertainment Corporation (NYSE:LGF) has witnessed a drop of 10.3% or 1,575,357 shares in its short figure. The short interest diminution took it from 15,240,404 on June 15,2015 to 13,665,047 on June 30,2015. In terms of floated shares, the short interest was calculated to be 9.8%. The days to cover are 11 given that the daily volume averaged 1,215,976 shares. The information was released by Financial Industry Regulatory Authority, Inc (FINRA) on July 10th."
The other 90% haven't felt the need to close their positions yet. Some may be waiting for $38 or $39, but most I think, human nature being what it is, are waiting for $40. Considering all the buzz around Netflix and content in general, I'm thinking $40 could be here very soon. I'd love to see a real short squeeze.
I'd like to see a threesome between LGF, Starz and AMC- I bet that is what Malone has in mind. They would be the king of content- superior to HBO and Showtime.