"Every once and awhile there's a new product that's big enough to move the needle," Cramer told viewers. Once such product is a new movie called The Hunger Games, coming in March.
Cramer explained that movie studios have a hit-or-miss record when it comes to financial success, but in the case of Lion's Gate Entertainment (LGF), shares have already run up 35% for the year ahead of the Hunger Games release.
So what makes this movie so special? Cramer said it's the first book in a trilogy by Suzanne Collins, a trilogy that has already sold more than 23.5 million copies and comes with a built-in fan base. Lion's Gate plans to covert the series into four movies, the first of which could generate $400 million in revenues for the company in the U.S. alone.Cramer said that number translates to 87 cents a share for Lion's Gate, a huge swing for a company that was expected to earn only nine cents a share this quarter but delivered a penny a share loss instead. yet despite the disappointment, shares of Lion's Gate rallied 7% in the follow day's trading, another sign that momentum for the new movie is building. But Lion's Gate is more than just a single potential hit movie, said Cramer. The company also has one more film in the popular Twilight series and is actively developing other pop-culture young adult titles for its portfolio. Cramer said that movie studio stocks often don't trade on earnings, but rather on the anticipation of new releases. In this case, that anticipation is reaching a fever pitch, which is why Cramer recommended buying the stock on any weakness.