The stock is tanking because relentless, seedy shorts are selling naked. This drop makes no sense and is unwarranted.
Another problem I see is that the whole franchise thing is out of control. Star Wars for example was not planned to become a lifelong franchise. It started off as a simple movie made for 11 million dollars. Trying to force a franchise will continuously backfire.
Lionsgate needs to get back to basics. Make good, quality solid films on modest budgets with appropriate advertising but not overkill personally, I think they are too focused on this whole trying to create a franchise, buying up novels and thinking that is the answer. Books don't necessarily translate to successful films. There is a reason there are novels and screenplays. Novels aren't always, nor often meant to be made into movies.
I am sick over this plunge and it is, in my opinion, all because of some kind of unwarranted short attack. I don't like this. Lionsgate needs to sit back and rethink their movie making strategy. Simply get back to basics. This is a no win situation, churning money back into these so called wannabe franchises will backfire. Twilight had the intriguing and sexy wow factor for the youth. Hunger Games was hyped so much people didn't have a choice but have to see wha all the hoopla was about. Without Jennifer Lawrence those films would have failed and I believe now with Divergent, this whole let's appeal to what we think the youth want to see is wearing out. We need to start showing big profits. Bottom line! The shorts will eventually have to cover and is am praying Lionsgate reorganizes their philosophy of making good movies that are DIVERSIFIED in their audience appeal.
I am SO SICK of hearing this word FRANCHISE! Do you not understand that this will be the death knell of Lionsgate if they keep thinking along these terms. It's all I've been reading about from posters and Lionsgate talk about Franchises, franchises, franchises. Sorry, but there will be no franchise when they try to force one. They want a franchise? They will get one when they least expect it and focus on simply making a movie that appeals to a broad demographic. The franchise they so desperately want will come to fruition when they appeal to a broader demographic then these current so called wannabe franchise desperadoes are attempting to accomplish.
Think about it and do the math. What population of the demographics across the globe saw Catching Fire to give it the numbers it had? A TINY, and I mean TINY percentage of the population. Great, it made Lionsgate some profits. But you want something like is going to appeal to a much broader and diversified demographic to really see the big numbers. They are branching out it into all these Latin markets, this market, that market. Make a film that a broad demographic wants to see, regardless of the genre. They're focus is becoming skewed and they need to broaden their horizons. THEN you will see movies bring in even much bigger profits than Catching Fire, which wasn't even a good movie and the amount they spent promoting the thing isn't going to pay off in the long run and the Divergent will cannibalize MockingJay films which are stinkers anyway and Divergent will actually outpace the Hunger Games series in the long run.
My bottom line point here is stop with the whole franchise, franchise, franchise. Just make good movies with modest budgets and before they know they're going to have an Academy Award film in addition to much bigger profits than what the gross to net Hunger Games series will end up being for example. That was an anomaly and will balance out to ultimate break even down the road. Divergent will prevail.
I disagree. Lionsgate is making low budget films for a specific genre. Actually they are doing it much better than other studios. (John Carter (Disney), Mortal Instruments (Sony), etc.). Track record = Brand Value = Bump in stock price and or takeover by a major studio.
These movies will have long term appeal for over a generation (DVD/Blu-Ray, TV rights, etc). Also the PROVEN SUCCESS versus other studios ensure they have first pick with the authors. They can say oh WE GUARANTEE SUCCESS and a lot of cash via royalties.
The price action is ACCUMULATION! for the next leg up. PERIOD!!!!!
If you don't know anything about stocks then don't trade. Do something else with your life. Why don't you think analysts have chimed in?????? Oh maybe because they are busy accumulating a position so they can send this stock to $40 and make hundreds of millions on idiots like you.
I also believe this stock is a huge takeover target. Simply because of their track record. Disney, Sony, Warner Brothers could all use Lionsgate/Summit brand name to lure authors.
Sentiment: Strong Buy
Chill out. Take your significant other to see Divergent over the weekend and when you leave buy a few tickets for your parents, siblings, or friends.
The sell is just about over, then, boom, back up to $33. I've seen this movie before, when I was unwise, unlearned to the lows some people will do to drive a stock down.
That is how some people make money, driving a stock price down, then buying the sold shares on the cheap.
I may be a new boy on this block, but I have been around for 14 years, learning how to make money in the hinderlands.
It is an old movie in the mid-cap and small cap space. Portfolio managers can book profits from lower prices, and then set themselves up for a nice gain this year in their portfolio by buying back in at a lower price. No one has stepped up yet, but they will.
The key is you must believe in the company and management and have an overall positive market view. Been through this with U.S. Airways pre merger for two years, NRF for a year and a half, and QCOR ever since the short attack that sent stock down to 17. They are my three biggest winners to date, will not say I was never nervous, but I never lost sleep over the positions. Not as high on LGF as I was those three, but my confidence is growing every day I drive by the theater and see the lines for Divergent.
Note: if you are losing sleep over this stock, you own too much.
Sentiment: Strong Buy
I'm with you genetz. I don't think the company is doing anything wrong as far as making movies. I'm sure the other studios would love to have disappointments like Divergent. I personally would love 3 or 4 of these disappointments per year.
The only thing I disagree with is the dividend. Keep the $.20 a
You are going to pay me and put it toward paying off debt and making hit movies. I anticipate a short squeeze in the near future.
I'm not a conspiracy theorist, but maybe some of the people on this message may be on to something when it comes to Icahn shorting. He is a vindictive person who happens to be losing a few of his battles with HLF and EBAY. He was nicely told what he could do with himself by AAPL when it came to his buy back strategy. Who knows, it just seems like a good buy when you look at the fundamentals and pipeline.