Lionsgate is a company I like for the following reasons:
1. It is a content provider. In the age of live streaming, the content providers have lots of leverages. Its library has accumulated thousands of titles and is going to make stable cash flow.
2. The Huger Game's box office is flying. The serial will make at least 1.2 billion dollar for LGF in next four years. The last Twillight coming out in Nov. will bring another 300 million dollar.
3. The sale of TV guilder network will reduce the debt load by about 150 million. Given the cashflow from HG, I expect by the end of this year, the debt level will be around 600 million which is more comfortable for investors.
My target for LGF is 19-20 dollar in 6 months.
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