Lions Gate Entertainment: Still waiting for cash flow

This is why shares of the studio were rewarded with a bid in yesterday's after-hours market. At the time writing, Lions Gate was up over 7%.

I can't say I was as pleased with the data as the traders seemed to be. Besides my issue with cash flow, I'll point out that a mere 3% increase in sales doesn't cut it. However, I will concede that Lions Gate has generally done okay with the top line as of late.

Revenues are a tricky thing for a content business to control. Competitors such as Disney (DIS) and General Electric's (GE) NBC Universal have had their share of problems with underperforming film slates. Also, coming to grips with the declining home video industry has been an ongoing struggle.

I don't necessarily see a catalyst for Lions Gate that would help it to break out of the trading range it's been in. For now, I'm going to stay on the sidelines. Cash flow will probably improve over time, but I'll wait for more information on Lions Gate's current slate before undergoing additional due diligence (the performance of the latest Saw sequel certainly isn't going to help the process).

Disclosure: I own Disney, GE; positions can change without notice.