3 Picks For Long-Term Gains

Includes: IMAX, LGF.A, SIRI
by: Stephen Faulkner

Since I started writing for Seeking Alpha, many people have asked me for some ideas for longer term gains. Since my longer term is 6 to 12 months, these stocks should be considered as recommendations for that time frame. Each shows great prospects moving forward, and I expect solid gains from each in my portfolio for the reasons I list for each below:


Sirius XM is the only provider of subscription-based Satellite Radio service in the United States. With over 20 million subscribers, a profitable balance sheet and exceptional prospects for the full year 2012, Sirius XM is poised to appreciate well beyond its current share price at Tuesday's close of $2.25.

With a large driver of subscribers being auto sales, and those figures shaping up for an exceptional year, Sirius XM stands to benefit. SAAR was approaching 15.1 million for February, and March, as Spencer Osborne puts it, looks awesome. Making headway into used automobiles, along with additional retail exposure through the Lynx and Edge radios, Sirius XM can be expected to add considerable numbers to their subscriber base over the next year. These factors should increase other metrics in a positive direction across the board, compounded with a modest and so far well received price increase this year.

Sirius XM has flirted with resistance at $2.35 recently, and appears due to break through very soon. After a long period of sideways trading on very low volume, Sirius XM has had a surge in volume over the past two days. Generally this points to a large move soon, and given the positives, I believe Sirius XM is due for a break to the upside.

Lions Gate (LGF)

With the blockbuster release of The Hunger Games under its belt, Lions Gate looks poised to continue its string of impressive gains already exhibited this year. The recent pullback, or, in my opinion, selling on the news, could offer a great buying point for those looking to go long for gains down the road.

The steady rise from January can be attributed to Lions Gate's purchase of Summit Entertainment, which gives them rights to the Twilight Saga series of movies, and rights to theatrical release of the last movie in the series. The most recent rise over the past week can be attributed to speculation and hype surrounding the release of the movie The Hunger Games.

Reality is proving that The Hunger Games is already turning into a blockbuster hit, and be extremely profitable for Lions Gate. Consider the movie took only 80 million to make, and on opening weekend raked in over $150 million. Want more than The Hunger Games? Take a look at this contribution from Brian's Opine. Excellent prospects abound for Lions Gate for the full year.


After a disappointing year of earnings from IMAX in 2011, the company could very well be shifting gears. 2012 is here, and with it comes a new year of potential blockbuster hits due to hit the big screens in the next 6 months alone. Consider the following line up :

  • The Hunger Games (released)
  • Wrath Of The Titans (March 30th)
  • Titanic 3-D (April 4th)
  • The Avengers (May 4th)
  • Men In Black III (May 25th)
  • Prometheus (June 8th)
  • The Amazing Spider Man (July 3rd)
  • The Dark Knight Rises (July 20th)

These movies are all highly anticipated films which look to be some of the biggest movies of the year. Consider how well The Hunger Games is doing from Lions Gate above, and look at that line up one more time. Is there a single movie on there that does not scream "blockbuster"? I know I will be attending every single one of them, and as always, I will see them in IMAX. A blockbuster year for IMAX could translate into a blockbuster year for the stock.

Each pick above I have chosen from my longer term holdings as great prospects moving forward, and great ideas to look at for your portfolio. Consider the future 2012 offers these companies, and capitalize on them if you have confidence in their abilities to offer you returns moving forward.

Disclosure: I am long (SIRI) (April and June $2 calls), (LGF), (IMAX)