Whether the lofty expectations pan out or not, believe it or not, there is more than one investment opportunity you can take advantage of to make money on the success of The Hunger Games series and other major Hollywood blockbusters.
The company behind the production of The Hunger Games is Lions Gate Entertainment Corp. (NYSE/LGF), which is already up over 100% from its 52-week low and could head higher if the film sets new records, meaning this production company may be an investment opportunity. In addition to films, Lions Gate also produces 28 television shows over 20 networks.
Chart courtesy of www.StockCharts.com
Fundamentally, Lions Gate has delivered decent results, beating the Thomson Financial consensus earnings-per-share (EPS) estimate in each of the past four quarters, making it a possible investment opportunity. Revenues are estimated to grow 6.4% to $2.93 billion in fiscal 2015 ending in March. Fiscal earnings are estimated to rise 50% to $1.54 per diluted share in fiscal 2015. While the best gains are behind the stock for the time, longer-term, I see Lions Gate as a good investment opportunity.
A second investment opportunity on the success of The Hunger Games series and other blockbusters is IMAX Corporation (NYSE/IMAX). IMAX offers venues in which you can see the film on a specialized 12,000-watt power-packed screen that could be as high as 98 feet. In general, every major blockbuster film is shown on IMAX screens around the world…. Read More
As I’ve written in these pages before, Apple Inc. (NASDAQ/AAPL) needs to increase its brand in the Chinese economy in order to really entice investors and jumpstart the stock. (Read “Update: Apple’s Attempts to Enter Emerging Markets a Blunder?”)
The reason is simple: China is the biggest mobile phone market in the world with over one billion users, which is more than three times the size of the United States market.
Apple is rumored to have a major distribution deal in place with China Mobile Limited (NYSE/CHL), the largest cell phone operator in the country with a market cap of $210 billion. The company services about 755 million customers as of the end of September, which is huge. (Source: China Mobile Limited web site, last accessed November 5, 2013.)
In my view, Apple could see its business accelerate if a deal is finally announced and, of course, if Apple can execute in the Chinese economy via much cheaper smartphones than the “iPhone 5C.”
For China Mobile, the addition of Apple could also generate new sales and higher margins, so it’s a win-win situation for both companies. The move towards 4G networks will also help to drive growth.
And with the rise in income levels in the cities and rural areas, we could see a major push to buy higher-end smartphones, such as those made by Apple.
China Mobile is the top mobile play in the Chinese economy. The company is bigger than Verizon Communications Inc. (NYSE/VZ) and AT&T Inc. (NYSE/T). China Mobile also owns Luxembourg-based Millicom International Cellular S.A. (OTC/MICCF), a telecom operator with mobile operations in 13 … Read More
While BlackBerry Limited (NASDAQ/BBRY) sends an open letter to investors and the smartphone market begging for its understanding, Apple, Inc. (NASDAQ/AAPL) continues to charge ahead, looking at various ways to expand its sales, especially in the global market.
Even with signs of the recently launched “iPhone 5C” not faring well, the company continues to strategize concerning its direction. (Source: Ellyatt, H., “Apple cuts 5c orders on weak demand: Report,” CNBC, October 16, 2013.) The higher-end metal-encased “iPhone 5S” is performing exceptionally well. (Read “Update: Apple’s Attempts to Enter Emerging Markets a Blunder?”
In the case of Apple, the soft demand for the 5C is not a big deal at this point, but the company will need to find a way to break into the emerging markets. The strategy of producing what is perceived to be a lower-cost version of the 5S (but with a cheaper, plastic look and slower processor) appears to be failing. The issue is that Apple’s rivals have a deep-rooted presence in the emerging markets, with Samsung Electronics Co. Ltd., Nokia Corporation (NYSE/NOK), LG Electronics Inc., HTC Corporation, and others offering smartphones for essentially zero dollars.
In order to excel, Apple needs the emerging markets, especially a deal with China Mobile Limited (NYSE/CHL), which appears to be in the works, as the iPhone can now be used on China Mobile’s 4G network. If a deal is done, Apple will have access to more than 650 million customers who would likely be extremely happy to move over to the iPhone. Of course, the price has to be right. There is speculation the date of an … Read More
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