Recently, there has been talk about the lack of volume in LGF. A few moments ago, there was a lull in LGF activity. Then, one share was traded at 33.01. Then another lull. Then four shares were traded at 33.01. Then another lull until a 100 share block was traded. My question is, who trades LGF stock in one share increments?
In 2015, Summit Entertainment, riding on 2014's biggest hit "Guardians of the Galaxy", will introduce a new movie " Guardians of the Lionsgate". The movie, starring Jennifer Lawrence, will show the heroin valiantly thwarting all attempts by evildoers to steal Lionsgate films before their release. In an ironical twist, the movie, originally slated to be PG 13, will be rated R, as the heroine herself is outraged at topless photos of her being released without permission on the internet. Mel Gibson may be cast once again as the villain. Or perhaps Arnold. Whoever is chosen for this role will be working at minimum wage, as their last movie lost money. The raccoon has not yet been cast. The tree is rumored to be a beech. To ensure piracy will not occur, the movie is being shot on Kodak 8 millimeter film. Rumor has it that it may be released straight to DVD.
ken12742: This posting is one of the best I've seen on this board recently. It's long on intelligent assumptions and short on pie in the sky wishes..
LGF is expected to earn 17 cents this quarter. That's the average estimate as of this morning (August 25). Trouble is, 17 cents was the average estimate about a month ago, before the dire box office results for EXP 3 and Step Up were known. And EXP 3 took a large hit this weekend vs. last weekend at the box office. 17 cents this quarter? Don't bank on it.
Up a penny on the lowest full trading day volume of 2014. I guess all the important news concerning LGF is already out and there is nothing for the traders to get excited about.
Daniel Jones just penned an article about Lionsgate. The main point is that the current quarter is going to be so bad, with Exp 3 and Step Up doing so poorly at the box office, that a write down is now a possibility.
outlaw: You may very well be correct. I believe the whole stock market has gotten ahead of itself and is due for a correction. If it does correct between now and the next six weeks or so, I believe it will take most stocks down with it, LGF too. Hence I believe investors will get a better entry price in LGF than today.
outlaw: I believe I am looking forward. I did not sell on the last pop. Stocks fluctuate. The recent run up in LGF stock seems to me to be overdone. If it retreats to the high twenties, I believe it will be a better investment than at 33. Hey, I may be wrong about this. And if I am, I'll stay with my current position. If I'm right, I'll buy more. If I'm right, maybe you'll buy more too.
LGF's Exp's 3 opened this weekend at 16 million, nine million below estimates and down nearly 50% from Exp's 2 opening weekend. The PE on LGF's stock is 31. The company made 1.04 per share in earnings in fiscal 2014. Before this weekend, LGF was estimated to make .18 per share in this quarter. That's not going to happen with Exp's 3 performance. Exp 3 cost 100 million. I believe that LGF's stock has gotten too expensive with two of its movies released this quarter doing much more poorly than expected. A pullback in the price of the stock is warranted and will give investors a better entry point than the current inflated price.
On the day LGF's EXP 3 is released, the Wall Street Journal released an article highlighting Lionsgate as well as MGM holdings. My take was that LGF stock may have run up too much in price for their upcoming stream of films. WSJ stated that over the last two and a half years, LGF stock is up 294%. The gist of the article implied that for a company" with two 'Hunger Game' movies on the way but no other clear prospects for a similar blockbuster franchise", a 294% rise in the price of the stock might be a little excessive.