In reply to your post, I have 2 months of additional data to reflect upon, but I think CNK price can
improve if its Latin America operations continue to show improved revenues
If the US and Latin America improve, at the same time, then the CNK multiple will going higher
due to its ability to generate profits from 2 separate regions of the world.
I am not selling CNK .......but not adding yet, either. My CNK position avg cost is $ 20.10
Recently read in Barron's that CNK is seeing improved movie going metrics from its growing
Latin America segment ....
This is good news for 3 reasons
1) The US movie theater box office data has not been strong this year, overall
2) Latin America movie attendance have been slow for many quarters & CNK has
invested large amounts of capital to biuld their Latin American business.
3) CNK is the lone US theater operator with a significant Latin American presence
thus this improved region could provide CNK with a catalyst other theater operator
do not possess.
CNK should increase in price as Latin America returns to its original revenue trends
and the US holiday season increases US movie box office sales.
I expect a strong 2nd half for CNK price movement
CNK traded $ 28.20 this morning, in response to last night's CC......not a good reaction by the
Are there signs that the Latin American growth plans are hitting a bump ??
What is your thoughts on future stock price prospects for CNK.....
I added to my position in CNK on the premise of excellent mgmt execution
back in May. What are you expecting from the next CC ?
Here is what happened...07/05/2011
Sector Snap: Cinema stocks fall amid 3-D worries
Shares of movie theater companies drop after Janney downgrades Cinemark, Regal
NEW YORK (AP) -- Shares of movie theater companies such as Regal Entertainment Group took a hit Tuesday following downgrades from an analyst lamenting a recent decline in 3-D movie attendance.Janney Capital Markets analyst Tony Wible said that 3-D movie attendance has fallen the past month compared with attendance at regular-screen movies.
As of Oct 2012 hitting $22 even it went to $27 and change. After the downgrade shares slide to just above $16...and yet before the end of 2011 shares traded all the way to $20. Now...what stock hit $38.50 on a 1 year chart and can still be had for pennies? Use the Ragingbull website. Find the message board for MGM, read 282.
I want to say it deals with size and locations. CKEC normally does smaller areas / screens.
I have nothing to prove that theory
Last month, both CNK and CKEC purchased theaters from Rave.
CNK bought 32 theaters/483 screens for $ 240 million ....or $ 496,900 per screen
CKEC bought 16 theaters/251screens for $ 19 million .....or $ 75,700 per screen
Both groups of theaters seemed to have the same digital and 3D infrastructure.
CNK states their screen are mostly located in the NE while CKEC's are located
in the south, Florida & a few in the Midwest.
Why would CNK pay 6.5 times more per screen than CKEC ?
What am I missing ? On the surface it looks like a bad for CNK
This is a much easier stock for me to earn compared to our Imax crazy beta high low dumbness.
We will see how earnings do on an presidental election day...
I know the volume is crazy low, but something is odd to beat earnings and be down over 2% when numbers are good on headlines...