Lions Gate Entertainment Corp'

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Lions Gate Entertainment Corp.
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What does this company do?

• Lions Gate is the top producer and distributor of
  independent films.
• Engages in the production and distribution of
  motion pictures, television programming, home
  entertainment, family entertainment,
  video-on-demand, and music content.

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History of the company

• Founded 1997 by Investment Banker Frank Giustra.
• Headquartered in Vancouver, Canada.
• By end of 1997 Giustra had acquired Cineplex
  Film Properties, Mandalay Television, and North
  Shore Studios.
• 2000 Giustra was replaced with Jon Feltheimer
  who focused on assembling a library of film and
  TV titles.

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History Cont.

• 2001 Lions Gate joined with Artisan
  Entertainment and the two companies acquired
  distribution rights to the TV and film library of
  Kushner-Locke.
• 2002 the company sold its stake in Mandalay
  Pictures.
• 2003 With its purchase of Artisan Entertainment,
  the company dramatically increased the size of
  its film and TV library.

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Products/Services

• Releases approx. 15-18 motion pictures
  theatrically per year
• Operations
• Artisan Entertainment- (Independent film
  production and distribution)
• CinemaNow- (Online video-on-demand provider
• Image Entertainment- Home video and DVD
  distribution)
• Lionsgate Films- (Independent film production and
  distribution)
• Lionsgate Studios- (Canadian production studios)
• Lionsgate Television- (TV production)
• Trimark Pictures- (low budget film distribution)

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Products/Services Cont.

• Total Sales 2006 951.2 million
• LIBRARY 3,000 motion
• picture titles and 2,500
• television episodes/prog.
• Some selected titles
• American Psycho (2002)
• Crash (2005)
• Fahrenheit 9/11 (2004)
• Monsters Ball (2001)
• Dogma (1999)
• Open Water (2004)

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Subsidiary- Lions Gate Television Corp.

• Operates as Lions Gate Television and bills
  itself as a boutique production company.
• Aims more for the smaller cable audiences than
  its media conglomerate-backed competitors.
• Lions Gate Television believes that its low
  production costs and the programming needs of new
  cable channels provide the firm with a bright
  future.
• 2006- produced more than 90 hours of programming
  

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Lions Gate Entertainment Corp Location of
Operation/Profits

• Lions Gate Entertainment Corp. has offices in Los
  Angeles, New York and Vancouver.
• 2006 Sales- 951.2 million
• 1-Year Sales Growth- 12.9
• 2006 Net Income- 6.1 million
• 1-Year Net Income Growth- 69.9

Source Hoovers
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Stock Performance
Source http//moneycentral.msn.com/detail/stock_q
uote?ipageqdSymbolLGF
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Possible Reasons for the Stock Performance?

• The drastic increase in stock performance seen
  around Sept. 22 was likely due to the fact that
  Lionsgate shares had reached a new 52-week high
  that day.
• The decrease in stock price shortly after could
  possibly be in part due to the anticipated
  releasing of Lionsgates new motion picture
  Employee of the Month. Recent reports state that
  Jessica Simpson is one of the most overexposed
  celebrities out there today- which could have an
  impact on how many people plan to see the film,
  thus negatively affecting stock prices.

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Lions Gate Entertainment is an excellent stock
because

• Stock Rating Summary
• Lions Gate Entertainment Corp., a small-cap
  value company in the consumer services sector, is
  expected to outperform the market over the next
  six months with very low risk. (msn money)
• (10 is the best possible rating.)

msn money
Source http//moneycentral.msn.com/investor/srs/s
rsmain.asp?SymbolLGF
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Continued

• In the past year, earnings growth has accelerated
  moderately compared to earnings growth in the
  past three years.
• The StockScouter measure of relative price change
  and consistency is very high.
• Previous day's closing price for LGF was slightly
  above its 50-day moving average. Source msn
  money
• Lionsgate is an excellent stock because it is a
  successfully run, independent company that is
  anticipated to outperform the market over the
  next six months.

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Why did we chose Lions Gate?

• Interest This company was of interest to all of
  us because it is in the movie industry, which we
  all were drawn to. We know of many Lions Gate
  motion pictures.
• The Company This is a successful, independent
  company that conducts itself in a different, yet
  effective way. It knows how to spend very
  little, yet earn a lot.
• Through our findings, it seemed to be a very good
  company to invest stocks in.