I've been a near-psychotic bull on Lions Gate
(LGF), and I'm happy to see that the stock's up huge today after being featured on CNBC's Fast Money last night.
Essentially, the CNBC segment, which featured Lions Gate Chairman Michael Burns, put what I call the "Hunger Games Trade"
on the map. On Monday
, I wrote this about The Hunger Games
film, which will be released in March:"Yesterday, The New York Times ran a story discussing the hot sales of The Hunger Games book trilogy, noting that "if spiking sales of the books are any indication, Lionsgate’s marketing efforts are whipping up a five-alarm box-office fire."
Plus, The Hunger Games is now in the finals of MTV's Movie Brawl 2012, an online tournament where fans vote to determine the year's most-anticipated film.
Movies that didn't make the finals include the final Twilight, The Dark Knight Rises, and The Amazing Spider-Man."
The Fast Money crew recounted these points more or less verbatim last night, and thus, I used this morning's pump to book gains in this relatively illiquid name.
I still have some LGF call spreads on the books that I'm going to let ride for now.
I'll be looking to add on pullbacks, though they've been hard to come by as of late as the stock's gone parabolic.
The lesson for investors -- there's money to be made by paying attention to what kids are reading/watching/playing.
Position in LGF