Investors Not Hungry For Lions Gate $32 Shelf Offering

'' Lions Gate Entertainment

shares are trading lower by $3.29 at $31.48 in Wednesday's session. The catalyst for the steep decline is the announcement of a 10M share shelf offering via selling shareholders at $32/share. The issue, which has been on tear since entering into stock exchange agreement with affiliates of John Malone on February 11, rallied from its February 10 close ($29.69) to a closing price of $34,17 on March 18, Since that day, it has made multiple highs in the upper $33 handle and lower $34 handle while posting multiple closes in the $33 handle. In fact, since March 18, it has only had three closes not in the $33's, two in $34's and the lowest close over this same time period being $32.85 on March 25. Today's announcement has jolted the issue out of the nealry month long trading range. After a lower open (Tuesday's close of $33,58 vs. Wednesday's open of $31.30), it had a brief pop to $31.74 before declining to $31..02 and rebounding to its current level. The current intraday low coincides with its February 19 low ($31.03), which represents the lowest level for the issue since the stock exchange agreement with the affiliates of John Malone.