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Lookback: Miller Value Partners 2019 National CineMedia (NCMI) Thesis

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If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on National CineMedia Inc. (NASDAQ:NCMI) stock. In its Income Strategy Q3 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on National CineMedia Inc. (NASDAQ:NCMI) stock. National CineMedia Inc. (NASDAQ:NCMI) is a cinema advertising company.

On October 21, 2019, Miller Value Partners had released its Income Strategy Q3 2019 investor letter. The investment firm said that National CineMedia Inc. (NASDAQ:NCMI) was one of the biggest contributors to its performance in Q3 2019. National CineMedia Inc. (NASDAQ:NCMI) stock has posted a return of -45.0% in the trailing one year period, underperforming the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was wrong in its decision.

Miller Income Strategy fund posted a return of 2.69% in the third quarter of 2019, outperforming the S&P 500 Index which returned 1.87% in the same quarter. Let’s take a look at comments made by Miller Value Partners about National CineMedia Inc. (NASDAQ:NCMI) stock in the Q3 2019 investor letter.

"National CineMedia (NCMI) was the top contributor over the quarter, rising 28.23%. The company reported Q2 revenue of $110.2M, just shy of consensus of $113.0M driven by weaker-than-expected June attendance. Operating Income Before Depreciation and Amortization (OIBDA) of $50.2M was in-line with street estimates, and the quarterly dividend of $0.17/share maintained (8.2% annualized yield). Management reaffirmed full-year guidance with revenue of $450M-$465M and OIBDA of $207M-$217M. Lastly, the company announced an amendment in their Exhibitor Services Agreement, allowing the shift of ads into the trailer window ahead of a film’s start which should drive additional in-theatre ad demand with incremental revenue and OIBDA."

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In June, we published an article revealing that Miller Value Partners exited its position in National CineMedia Inc. (NASDAQ:NCMI) stock in the first quarter of 2020.

In Q2 2020, the number of bullish hedge fund positions on National CineMedia Inc. (NASDAQ:NCMI) stock increased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in NCMI's growth potential. Our calculations showed that National CineMedia Inc. (NASDAQ:NCMI) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.