Lions Gate's Strategic Risk Could Help This Stock Catch Fire

The fate of Lions Gate's stock hinges on whether The Hunger Games: Catching Fire outperforms, Fool contributor Tim Beyers says in the following video.

Why? The budget. According to The Hollywood Reporter, Lions Gate spent $130 million to produce the film. That's up from $78 million for The Hunger Games, which earned more than $400 million during a 24-week run in U.S. theaters. Worldwide, the film earned just over $691 million.

Those are terrific numbers for Lions Gate, which historically has earned much of its keep bankrolling small-budget horror films or co-producing cable hits for the likes of AMC Networks and Netflix. Investors have responded by bidding the stock up more than 150% since The Hunger Games' debut.

Can investors expect Catching Fire to beat its predecessor, and bolster Lions Gate stock in the process? Tim answers this question and more in the video. Please watch now and then leave a comment to let us know what you think.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Netflix at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends AMC Networks, IMAX, and Netflix. The Motley Fool owns shares of Imax and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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