This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

The 5 Dumbest Things on Wall Street This Week: March 23

3. Icahn Goes Hungry

Here's one for all you Dumbest fans that like to follow the so-called "smart money."

Shares of Lions Gate Entertainment (LGF - Get Report) approached an all-time high this week of just under $16 a share based on the massive expectations for its upcoming release, The Hunger Games. Wall Street analysts say the futuristic film, which focuses on mortal combat between teenagers, will likely gross over $300 million and spur a $2 billion franchise.

Sadly, a lot of investors missed the run-up after they left the stock for dead last summer. You see, when activist investor Carl Icahn, one of Wall Street's oldest and best known warriors, dumped his 44 million shares for $7 apiece in August 2011 as a result of a feud with the company's management, he took a lot of hot money with him.

"We made $2.5 billion last year for our investors," Icahn told Reuters about his Lions Gate whiff. "You never want to get out early, but we did pretty well."

True Carl, but all those bandwagon barbarians who tried to storm the gate with you are probably a bit peeved right now seeing the stock where it is, especially after the ruckus you made on CNBC two years ago.

You may choose to forget, but we certainly remember you publicly maligning Lions Gate vice chairman Michael Burns, accusing him of overspending and under-delivering. Well Carl buddy, a simple chart check shows that once the company stopped fighting with you and got back to business, it really showed its management mettle. For all your gripes about the company's spending, even you can't argue with the bump in the stock after it bought Summit Entertainment's "Twilight" vampire movies for $421 million in January.

Icahn, who said he roughly broke even on his initial Lions Gate venture, continues to own 3.4 million shares of the company, according to Bloomberg. Despite his sizable stake, however, we don't hear him roaring at Lions Gate's brass the way he used to.

He may not want to admit it, so we will: It's game over Carl and you left hungry.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.98 2.00%
DNB $130.21 -0.26%
HPQ $33.71 -0.85%
LGF $33.49 -0.06%
VZ $48.36 -1.10%

Markets

DOW 18,042.99 -92.73 -0.51%
S&P 500 2,095.11 -5.93 -0.28%
NASDAQ 4,978.6090 -4.20 -0.08%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs