Lions Gate’s(NYSE:LGF), Once a Wall Street ‘Darling’, Stock Has Collapsed

Lions Gate’s(NYSE:LGF), Once a Wall Street ‘Darling’, Stock Has Collapsed

$LGF

The Hollywood studio that brought us “The Hunger Games,’’ “Mad Men’’ and “John Wick’’ is now facing an existential Question.

Lions Gate Entertainment Corp.(NYSE:LGF) has lost more than 60 % its market value over the last year as the once-idolized filmmaker struggles to find new mega-hits and tentpoles.

On Top of that, recent mergers have created entertainment behemoths that threaten to make smaller studios an afterthought in Hollywood’s new blockbuster environment.

All that has created a new sense of urgency around the 22-year-old Lions Gate as it weighs its future: open itself to being acquired, sell off pieces, or try to bulk up to compete with the giants.

“Some studios have scale and unfortunately some studios are now subscale,” said an analyst at Gabelli & Co. “The question is obviously, if you are a smaller studio and you do not own Marvel, what are you going to do?”

Lions Gate declined to comment.

HeffX-LTN’s overall technical outlook for LGF is Bearish in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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