Have you seen this movie before? Let me tell you the plot:
- An entertainment company has great content…
- …but has inconsistent profitability…
- …and a stock price that has languished for years.
- Its stock runs up prior to release of its biggest franchise.
- The franchise outperforms everyone's wildest expectations.
- The stock sells off a bit and goes nowhere for months.
- Unexpected Twist: At some point, Carl Icahn, seeing no acquisition of the company, sells his large stake.
The company is… Lions Gate (LGF) in 2011-2012 up to the release of The Hunger Games. The Hollywood ending was that LGF was essentially flat for 5-6 months after The Hunger Games opened, but since August 2012, the stock has more