Lionsgate Entertainment: Misunderstood, Too Cheap to Ignore

Lionsgate Entertainment (LGF) is the most misunderstood media company on the planet and I present here my reasoning and analysis on why I think the shares are particularly cheap and why I believe they will appreciate in value over the next few years, despite remaining in a tight range over the past 3 years. For disclosure, I have been a long time bull on Lionsgate, which has been dead money for the past 3 years. I think LGF is ready to break out of this trend, and that is why I have decided to put my thoughts to words.

For overview purposes, Lionsgate is a producer and distributor of original and purchased content. In the past 5 years, LGF has amassed an enormous library of content to distribute: according to its most recent proxy, as of March 31, 2008, LGF distributes a library of approximately 8,000 motion picture titles and approximately 4,000 television episo