How have movie production studio stocks performed in the Summer?Is it time to buy stocks such as DreamWorks (DWA), Lions Gates (LGF), Disney (DIS), or even Viacom (VIAB)?
Every summer, movie studios release their blockbuster hits in the summer. Last year we saw the release of movies such as The Avengers, Men in Black III, The Amazing Spider-Man, The Expendables 2, and The Bourne Legacy. We don't need statistics to understand that movie studios make most of their revenue in the summer.
This year movie production studios will release Iron Man 3 (Disney), The Great Gatsby (Warner Bros.), and Star Trek Into Darkness (Viacom) , and Hangover Part III (Warner Brothers) all in the first few weeks of Summer.
For all intensive purposes we will consider May through August as the Summer time period. During this time, how have movie stocks performed?
Let us take a look into the studios behind the featured films to be released this summer among other studios.
My guess would be that because of hot releases in the summer, there would be a huge demand and rise in the stock price of the respective distributors and production companies.
Conclusion: Above are statistics of how the stock performed from May to Aug versus the total year including summer. Cyclically, it appears as of movie stocks do not perform well from May to Aug. Despite the fact that they were up in 2012, the stocks performed significantly better the other periods of the year.
The strongest stock in the list is LGF. DWA is the weakest.