Key insights
- An individual investor increased their position in Lions Gate Entertainment ($LION), citing a valuation gap compared to Warner Bros. Discovery's library value and upcoming catalysts like the Michael Jackson biopic release and debt reduction. They anticipate a price increase and plan to hold until mid-June. The investor believes the recent sell-off was unwarranted and driven by external factors.
With the drawdown of IRANIAN war and the false sell-off of LION heading into their poison pill expiration, MICHAEL release, later Hunger Games release, and debt buy down, I have increased my position to 275,000 shares (single investor).
Based on a 55% EV discount to WBD library value, we still price acquisition at $20-22 a shares for $LION.
We will be holding through June 15th before trimming. There was a sell-off in $LION last week which should never have happened but this is what happens when it gets tied up in $PSKY noise and overall market sentiment. This stock should gap up based on 7 years of following this company.
Reference: Last 2 posts related to $LION (685,000 shares at 5.85 and exited at 8) Re-entering higher on a much greater conviction.