If you peruse this quarter’s 13-F filing from Cove Street, you will see Lionsgate (Ticker: LGF.B) show up as a new holding. On that note, I recently had a chance to appear on the Market Champions podcast to discuss our rationale for the investment. Very briefly, our research suggests that things have changed since Lionsgate reportedly turned down Hasbro’s offer to buy the whole company for $40 per share. One thing is that the stock performance has not been stellar. But, in addition to that, the eye-popping price that Amazon is offering to pay for MGM implies a valuation for Lionsgate that is materially higher than is the current stock price.

In the presentation I gave and the Q&A discussion with the podcast host, Srivatsan Prakash, I discussed all of the above topics and more.

Please enjoy the interview here.

If you are interested in the slides, you can access them here as well.

-Ben Claremon