I agree and like I said those two names are very wishful thinking. Also I had a much larger position but trimmed it in half. I am in @ $11.85 so I am playing with free shares.
I wouldn't focus on a buy-out. If it happens great (I think, need to know details). Focus on if the company is good or not, then everything else will take care of itself. It seems like the guys at LGF know what they are doing.
I am not short this stock. I bought in last fall at $35.00 and have watched the stock fall below $25.00. I have stayed in this stock because I truly believe that Lionsgate is a very good company with phenomenal growth potential. I believe that there are many companies that have thought about buying Lionsgate and hopefully someone will, but the initial post stating that Disney will buy them out in a week serves as a negative toward the stock.
Sentiment: Strong Buy
Divergent is a difficult movie to show in China and surprised China allowed it to be shown. Whatever LGF gets out of it is gravey.
ISI Group began coverage on shares of Lions Gate Corp. (NYSE:LGF) in a report released on Monday. The firm issued a buy rating and a $41.00 price objective on the stock.
On a chart this thing pops to 37 quick and low 40s come Jan however takeover talk or activity in the sector turns it into my neighbors kid on ADD meds playing outside as I try to take a nap.
Deadline Hollywood and rentrak have it opening this last weekend in China and doing 10M. We had talked about if and when Divergent would make appearance in China. Now we know.
Still holding most of stock bought in mid-20's. Sold a few calls, and sold a little bit of stock in 33's. At this point selling calls on half of position and expecting some more price appreciation.
Some more from the article:
Kabam, whose shareholders include Time Warner Inc. TWX +0.07% 's Warner Bros. and MGM Holdings Inc., is known for movie tie-in games. Early next year, Kabam will start distributing a mobile-game spinoff of Warner Bros.' Hobbit series in China through Alibaba's mobile apps. When the latest film in the Hobbit series, "The Hobbit: The Battle of the Five Armies," hits theaters in China, people can play the game and also buy movie tickets on Alibaba's mobile apps, Mr. Chou said.Alibaba and Kabam have also discussed plans to distribute Kabam games through UCWeb Inc., a Chinese company Alibaba took full control of in June. UCWeb, which runs one of the major mobile-game platforms in China, will be a significant driver of Alibaba's game business, analysts say.
WHY IS THERE NO MENTION OF MJ GAME DUE OUT IN NOVEMBER THIS YEAR. ARE THEY IN A QUIET PERIOD WITH LGF IN LIGHT OF THEIR RECENT PARTNERSHIP WITH LGEW?
From the article in the last post:
China already has more than 350 million mobile gamers—more than those in the U.S. and Japan combined, according to research firm Newzoo. The firm expects China's mobile-game revenue to nearly triple to $6.6 billion in 2016 from $2.28 billion last year, overtaking the U.S. and Japan as the world's largest market. Newzoo projects U.S. revenue in 2016 to reach $6.4 billion and Japan revenue to hit $6.1 billion.
Alibaba is fiercely into expanding into mobile games. Lucky they have a partner like LGF to offer some franchise games to its customers. Here is an article detailing its increasing appetite for gaming strategy:
Based on market cap we already exceed the market cap of ATI and AVY. Depending on what happens on the next 2 ER's we may see LGF enter the index.
LGF currently has a market cap of 4.56 billion and it is conceivable that within the next several months they may overtake MNK at 5.06 billion. As their revenues become more predictable with growing streaming media and VOD, one could see LGF overtaking MNK or one of the other lower market cap companies in the S&P 500 in the near future.
Good point about Burns, Goldman, Merrill & BABA. Ya just KNOW that a good part of Burn's presentation will be about LGF's partnership with BABA (As if they didn't already know) and it's potential. I hear quacking also, and it ain't my beloved Anaheim Ducks!
Sentiment: Strong Buy