Whether you agreed with him or not, at least he posted his thoughts on how the company is positioned, commented on news items, etc. --- which also brought out the cabal and their counterpoint rebuttals. Without him, the board has regressed into a bunch of #$%$ that offers no information or insight into Macao or Melco.
Barron's February 20, 2016
By VITO J. RACANELLI
Thumbs Up for Lions Gate
Mr. Market sometimes gets emotional in the short term, which can present investors with an attractive opportunity. That appears to be the case with Lions Gate Entertainment.
When the shares of a profitable company are chopped in half over the course of 90 days, it pays to take a closer look. Mr. Market sometimes gets emotional in the short term, which can present long-term-oriented investors with an attractive opportunity.
Lions Gate hasn’t exactly lost its movie mojo. Several 2015 films garnered critical acclaim and awards nominations at the Golden Globes and the Oscars. And it recently inked a new three-year deal for its popular Orange Is the New Black TV show with Netflix (NFLX).
Valuation seems cheap. The stock trades at 13 times forward consensus analyst estimates of $1.60 per share, significantly below its median 20 price/earnings ratio. Clark estimates that EPS can grow to $2 in fiscal 2018 and puts a 15 multiple on that for a $30 stock price, 50% higher than today. Moreover, based on prior recent deal multiples, the company’s TV and film library is at least equal to its $3 billion market value, so there’s some downside protection, he adds.
Lions Gate’s stock price reflects a lot of bad news, and it doesn’t move much with oil prices or China’s economic growth. Sounds like a potential hit.