Movie Producers and Theatre Chains Love 2010: CNK, DWA, LGF, RGC, RLD, and CKEC
There’s Money in those Moving Pictures. There’s Money Showing Them to Audiences.
The following six companies are in the Services sector in the Movie Production, Theatres industry. Some of the following six produce movies, some operate movie theaters, some have their hands in both pies including home DVD sales.
Cinemark Holdings (CNK) has jumped from under $13 in July to its current price of $17.88 on theatre ticket sales. CNK operates 424 theatres and 4,896 screens in the United States, Canada, and Latin America. CNK has strong y-o-y revenue and EPS growth.
DreamWorks Animation (DWA) is of course the studio that has theatrically released 18 animated feature films, including Shrek and Madagascar. The stock price fluctuates on a particular movies box office success, but how are you going to miss with Spielberg?
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Lions Gate Entertainment (LGF) was trading below $5 in Feb and has slowly, but surely climbed to its current $7.45 level. One of the ‘Big movie producers, LGF also distributes a library of 8,000 motion picture titles and 4,000 television episodes to All media.
Regal Entertainment (RGC) operates 6,768 screens in 548 theatres in 39 states and the District of Columbia. Missing a penny in earnings brings out the analysts rage, but don’t let that fool you, the Co is undervalued at its current $13 range and a strong ‘buy on the dips’ consideration.
RealD Inc., (RLD) licenses stereoscopic three-dimensional or 3D technologies internationally. RLD 3D technologies have also piloted the Mars Rover. The July IPO has gone from $16 in Sept to its current $28.70 a share. Considering its 3D prowess, is this a $40 stock?
Carmike Cinemas (CKEC) owns, operates, or has an interest in 244 theatres with 2,277 screens located in 35 states. The stock dropped from over $18 in April to its current $7.72 price range on rising 3D costs and weak EPS. Another strong ‘buy on the dips’ consideration?
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