How long will the joyride continue? Lionsgate’s stock closed today +1.6% to $16.86, exceeding the previous record of $16.68 that it reached on November 9. While that’s the company’s best closing price, it’s still shy of the intra-day high of $17.02 that it hit on November 1. But execs at the independent studio have no reason to complain. Investors remain dazzled by Lionsgate’s string of successes this year including The Twilight Saga: Breaking Dawn Part 2, which has generated $227M at domestic box offices in its first two weeks. Lionsgate and Summit, acquired early this year, account for about 12.2% of the domestic box office so far this year, up from 5.8% for the two in the same period in 2011. And the company’s shares have appreciated nearly 111% in 2012.


In its statement, Lions Gate said Mr. Icahn and his son, Brett, had agreed to sell their stake of 44.2 million shares in the company at $7 a share, which it said was approximately the same as their cost basis in buying the stock – NY Times August 11, 2011.
illusion from the part of Investors, if they think that the film’s success is because of the distributor.
Investors don’t care why a film is successful-all they see is dollar signs. The Hunger Games: Catching Fire should carry LG above 20 a share by the end of 2013.
Talk to me in March when all this goes away. Twilight is done, now LG has to wait it out till the next Hunger Games. (thank god for that). A small player like this can’t continue in perpetuity with a tentpole once a year – and be able to finance all the rest of the duds, pay overhead, write off losers, etc. We’ll see. Look at Summit – even w/Twilight, they had to find a buyer or go quietly in to that ghost of a night !!!! Lions Gate does happen to be a very well run company, and that has been part of how they’ve survived. They didn’t have Twilight to carry them – but now they have Hunger, and that’ll provide much more heft. I wonder if they really made a smart move by buying Summit. Summit is most likely still carrying huge debt to investors and banks. LG has to absorb that !!!! Oh well, the wonders of Film Accounting