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Lionsgate wants Tiger Blood

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Why is it that some things never go out of style? Somehow Charlie Sheen has managed to land himself a new role with Lionsgate (NYSE: LGF) television, starring in a role similar to his Charlie Harper on Two and a Half Men.

This news came after a night of rumors that Charlie Sheen was dead. A twitter user fabricated the news of his untimely end, and soon the Internet was abuzz with the falsification, driving the search popularity for "Charlie Sheen Dead" to number one.

The rumor is easy to understand after Sheen's appearance earlier this year in a seriously disheveled state. His interview, where he claimed to be a warlock or to have tiger blood (not actually a product placement for an energy drink), strengthened his reputation as an out-of-control over-the-hill B-lister with a voracious appetite for cocaine.

After this behavior, and controversy over some statements that Charlie Sheen made about his bosses, his employment was cut short with Two and a Half Men. He then went on to tour the country, with a one man show where he confused his audience and embarrassed himself.

Lionsgate must be anticipating a similar show from Sheen. You can bet there are clauses in Sheen's contract to make sure he shows up and knows his lines, but you can bet that Lionsgate is depending on Sheen's reputation to draw a crowd.

Lionsgate is also planning to helm another embattled star's next project. Arnold Schwarzenegger has dealt with the consequences of cheating on his wife, Maria Shriver, and they are currently separated. In the midst of this, Schwarzenegger was signed to star in the film The Last Stand, a film about a sheriff in the west defending his town from a drug cartel.

Amid all this, Lionsgate has seen its stock appreciate. From a low of $6.50 two days ago the stock has gone up 1.35% to $6.75. Considering that news of these two stars doing business with company has only been released in the last two days, it isn't hard to tell where the climb is coming from. Will Sheen and Schwarzenegger help Lionsgate's price run out of the gate, or is there a cat nap ahead for this stock?

ACTION ITEMS:

Bullish:
For investors who think that Lionsgate is Winning!:

  • The upward trend could continue in Lionsgate's stock. Sheen and Schwarzenegger have been big stars for a long time, and controversy may only add to their fame.

Bearish
For investors who think these stars don't have any tiger blood left:

  • Lionsgate could be seen by its investors as making impulsive bids on stars nobody wants at the moment. Investors might run from this company the same way Sheen's audience did after his Torpedo of Truth.

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Posted-In: Arnold Schwarzenegger Charlie SheenNews Movers & Shakers Trading Ideas General Best of Benzinga

 

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