An update from Peace Arch Entertainments biggest Fan...Karma and Chapter 27

We have spoken about the greedy individuals, willing to put their morals aside and purchase stock in Peace Arch Entertainment. Hoping like management to profit from Chapter 27, basically making money off of the murder of John Lennon. I have also stated that I believe these individual stock holders are worse in many ways than John Flock, Linsay Lohan, and Jared Leto. This is an update from the analyst from ThinkIntrinsic, one of the very few Wall Street firms that follow Peace Arch Entertainment, the company that has produced Chapter 27. This is a copy of the email I received, including the links to his latest coverage on a stock that he had built up in the last few years. Seems like the curse of Chapter 27 will now hit the individuals looking to profit, right where it hurts...in their wallets.
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Thanks for your feedback on ThinkIntrinsic. I have recently updated my position on PAE, which can be found here:

http://www.thinkintrinsic.com/companies/t/pae_update

Over the last little while we have also made some posts about PAE on the blog:

http://www.thinkintrinsic.com/intrinsicthoughts

But for the most part the future of the company is not clear so I have avoided speculation and will wait until the earnings release and more information before forming an opinion.

Since the last mention about PAE on this site (we have talked about it some more on the blog) PAE's CEO has left the company. The Chairman, Jeff Sagansky, is interim CEO and PAE is looking to acquire ContentFilm, a UK-based film company with a large library and distribution business. PAE's vision has changed and we think this acquisition is more like a merger, given that ContentFilm is larger than PAE.

We also think that Sagansky has no reason to stay on as CEO and that a CFL executive will likely take that position. I would also like to note that Sagansky has sold one of his companies to CFL in the past and has a large ownership stake. It is not clear whether PAE wanted to merge with CFL all along but Howsam (former CEO and regarded by most as the founder) did not want to.

From here, I have not written PAE off but have sold my shares pending a valuation analysis of CFL. I am also unclear on the future direction of the company because CFL is larger than PAE so I must familiarize myself with CFL and see how it may affect the combined company's strategy going forward. For instance, CFL has intentionally avoided the production business, but PAE recently expanded its production operations with an acquisition in mid-2007.

and

PAE
Since the CEO was fired/quit, I’ve unloaded all of my shares. When the integrity of a founding CEO is questioned, holding onto the stock cannot be justified unless the new management has proven that they can hold their own and that their morals have not been influenced by their former-CEO. Also, it is unclear to what extent Howsam’s presence was fundamental to the execution of deals. We also don’t know if the acting-CEO will remain or if the Board is looking for somebody else.

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Please let us know where we should go with our blog as Chapter 27 and Peace Arch Entertainment disappear.



Remember John, not his killer!!
Boycott Chapter 27!!!
Stop Peace Arch Entertainment