Translates into 1.00 per share top line PROFIT. Bottom line translates into roughly .40 cents after the Box Office Take (50%) plus above the line residuals - and THAT's before CABLE, HOME VIDEO and BROADCAST TELEVISION RIGHTS - which bring it right back up to a buck per share. Now if the movie does 250 Million world wide as many are predicting, we've got 2.00 per share over the next 2 years coming into our coffers and that's BELOW the line, NET profit. That my friends would give us a forward PE with the likes of 7.4 or so! So keeping it real, lets expand that PE to come into line with a well matched comparison Dreamworks (DWA). DWA sports a forward PE of 17 ~ So YOU do the math. IF we see multiple expansion out into a similar rate we're looking at a price target of 34.00 per share! (and that's the projection off of this ONE movie in a series of FOUR. I would venture to say that 2.00 bottom line doesn't even begin to cover our earnings potential given that the new Lionsgate/Summit has LOADS of other prime income generating properties working for them in perpetuity and future projects galore, but I don't want to sound too wildly bullishly crazy. So I'll just stick with the 34.00 PPS target for today.
In Esherwood's post to me he noted that one of my original posts discussed the Twilight saga films. I wrote that the last three averaged over 4000 theaters and that Eclipse was shown at over 4400 theaters. Yes the original Twilight film was shown not at 3219 but 3419 theaters.
I am not trying to mislead anyone. I like to think that I have researched LGF well and yes I am in for the short term with options and in for the long term with shares. LGF will become a very big player in the industry over time.
You need profits to deleverage but I agree with your post. LGF's management has a great game plan. They see the big picture and will reduce debt sooner than later. Within a year, this company will be in a great cash position.
I am sorry. I thought your post was directed at me. I tried to correct the original poster with my first post in this thread. You are correct in what you wrote that expenses have to be covered first.
Alls good. Whatever happens to the stock price in the next few days, this will be fun to watch and pay dividends to long term holders
Have a great day.