02/10/06 11:40 am EST... S&P DOWNGRADES SHARES OF LIONS GATE ENTERTAINMENT TO SELL FROM HOLD However, partly because we think home video profits will be pressured by increasingly promotional pricing by other studios, we are lowering our forecasts. We now look for per-share losses of $0.20 and $0.40 in FY 06 (Mar.) and FY 07, vs. earlier respective $0.10 EPS and breakeven ests. We also see free cash flow of only $60 million in both years. On this lower FY 06 FCF forecast, we apply about a 16X multiple to derive our target price of $7, cut from $8. With shares above our target, we would sell. /WMack-CFA
I'm very sorry. I didn't know this board was governed by the Aiatolah. The Jeffries comment was misleading because it was part of a downgrade. Usually both sides are allowed to present their position in our society without fear of recrimination. I guess I'll just watch this stock go to $7.50 without further comment. This company will never made any money in the foreseeable future.