Teens love “The Hunger Games”, a trilogy of books coming to theaters. However, it is possible that their main fans are from another generation: investors.
So far this year has boosted the value of the shares of the companies best positioned to benefit from the release of the film scheduled for Friday. And analysts expect more profit report series.
Lions Gate Entertainment, which released the film Lionsgate studio in the U.S. and major foreign markets, is perhaps the most favored by post-apocalyptic story about teenagers forced to fight for life or death for the amusement of viewers.
Shares of Lions Gate Entertainment have risen 75% so far this year after climbing more than 7% on Tuesday to close at a record high of 15.27 dollars on Wednesday climbed another 4% in early morning trading.
Analyst David Joyce of Miller Tabak brokerage firm raised its price target for Lionsgate 14 to $ 17, and believes that this weekend the film will collect in the U.S. box office between 70 and 90 million dollars. In total, Joyce expected the film generate at least $ 300 million in ticket sales in the U.S.
“It’s not Harry Potter, but I think it will be awesome,” anticipates Joyce. The latest Harry Potter film, released last year, raised 381 million dollars to Time Warner at the domestic box office, to reach 1.300 million dollars in ticket sales around the world.
According to the specialist, much of the rally in stocks is because the company recently acquired Summit Entertainment, the independent studio that owns the film series “Twilight”. The fifth and last film of the vampire saga opens next November, and each one has raised, on average, 270 million dollars in American theaters.
“I can not tell how much of the gain registered by the action is due to the Hunger Games and how much is due to the Summit agreement. But producing the film helped to complete the purchase of Summit,” says Joyce.
The performance of the shares of Lionsgate this year suggest that the financier Carl Icahn may be the big loser of the stock rally led by The Hunger Games.
Why? Last fall, Icahn and his son sold 44 million shares of Lionsgate to $ 7 each, in a decision that put an end to a battle for control study.
Win the publishing and movie theaters
The noise generated by the film also helped increase sales of books, allowing the publisher Scholastic overcome their own forecasts and sales target in the most recent period. Scholastic shares have risen 22.5% so far this year. At the meeting last Tuesday rallied 1.7%, and on Wednesday rose another 1.8%.
Company executives said that although the fourth quarter turns out to be the year with more books sold, provide good results anyway franchise in the future. Analysts agree that the first film and the other planned films will help boost sales in the coming years.
“Unlike the series of Harry Potter, in which the self-propelled launch of the book sales , in this case, the film ‘The Hunger Games’ is one that seems to be driving the sales of books, “said Drew Crum, Stifel Nicolaus analyst in a note last week.
“The Hunger Games” was first published in September 2008. The second part of the trilogy, “Catching Fire” came the following year, and the last book in the series hit bookstores in 2010. Together, they have printed 24 million copies of three books only in the United States.
Shares of film carriers have done well this year as “The Hunger Games” and some other highly anticipated titles like “The Avengers,” “The Dark Knight Rises” and the latest movie “Twilight” have fueled hope of an upturn in box office after a disappointing 2011 with revenues.
James Gross, an analyst with Barrington Research, which monitors the industry, said the film “The Hunger Games” will surely have the best opening so far this year and could end up in first place in 2012, given the demand for tickets pre-sales. “Since last month were sold out tickets for the midnight session,” he said.
Shares of Carmike Cinemas have recorded the best performance of the group, the role is up nearly 81.7% this year, but fell slightly in early trading Wednesday. Operator actions giant IMAX screens have risen 41.8% so far this year, while the roles of two other major theater chains listed companies – Cinemark Holdings and Regal Entertainment Group – have made more modest gains, although both are up about 20% in the year. The last three companies experienced a slight rise in the price Wednesday.