Why Lionsgate Entertainment (NYSE: LGF) Will Succeed In The Long Term.
Perhaps you choose to use Netflix (NASDAQ:NFLX) as you primary entertainment provider; Possibly your family chooses Red box (NASDAQ:CSTR) to bring a night of popcorn and a flick; or may be basic network television, including networks such as CBS (NYSE:CBS) better suits your needs.
Lions Gate has created hit television series such as Weeds and Mad Men, and movies such as Twilight, the Hunger Games. Movie studios like Lions Gate have a very delicate balancing act to play when it comes to striking contracts with content providers. On the one hand, they can gain a lot of revenue from Netflix, Inc. (NASDAQ:NFLX) by striking a contract. On the other hand, they are potentially giving up revenue from other sources as the subscriber base at Netflix increases.
Lions Gate, operates in two segments, Media Networks and Filmed Entertainment. Media Networks covers any network that plays media. Filmed Entertainment is the production of the films. I recommend (NASDAQ: LGF) for several reasons. Their ability to "play well with others" impresses me. Tonight when I decided to post, once again on this stock, it hit me how much companies work together. Especially in the Entertainment sector.
It is not to say LGF does not have competitors. Viacom (NYSE:VIAB) is more diversified beyond motion pictures and is engaged in producing more television content: MTV, BET, Nickelodeon, Spike, VH1, Comedy Central, etc. The difference is, Viacom is trading at twice the price of LGF, making it difficult for new combers to the market to get in on Viacom stock.
I am new to the market and my base investment will be around $1000. Stocks priced as high as Viacom are out of my reach. LGF is still with in reach and I expect the company to progress. From a working woman's perspective, this is a stock that will improve a portfolio, covering for mistakes made by new investors in the market.
I am a paper trader currently, saving money to really invest. If I had the money now, I would go for it with this investment.LGF on New York Consolidated
7 Jun 2013
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Lions Gate Entertainment Corp. (Lionsgate) is an entertainment company with a presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales. During fiscal year ended... (more)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I am a beginner trader, interested in all aspects of the cooperaton between competitors, and how they work together. Any feed back will be appreciated.