Let me present to you, Entourage style, an investment idea.
Say a company leverages its entire future on one movie. And this movie opens with the third largest opening weekend of all time. And this movie blows away all box office expectations. And has fantastic critical acclaim. Would this be a company you’d be interested in?
Additionally, this movie is based on a three book series. And there are now plans to make three more movies based on the books. And, as we all know, Hollywood loves series like Harry Potter and Twilight. Would this be an investment idea you’d be interested in?
Now say you can buy this company at a price below $15 a share and join the ride for the next several years as this franchise breaks all box office records. Would this be a stock you’d be interested in? Well if it is, buy Lions Gate Films. Because I’ll sell you as much of it as you could possibly want.
Here are the facts. Hunger Games was expected to gross $100 to $115 million. It blew away all expectations and grossed $155 million. LGF has gone up from $5 to $16 from the time it bought the rights to The Hunger Games to the weekend the first movie was released. LGF achieved a P/E of only (ha) 73.3x. On the back of its flagship movie breaking all kinds of Hollywood records LGF is trading higher than it has since…..Friday’s opening. If a stock can’t go up on absolutely out of this world fantastic earth shattering news IT CAN’T GO UP. Would this be something you’d be interested in? So, I present to you a film titled Why You Should Short The Hell Out Of LGF.
