Cineplex Inc (CGX.TO)

What happened over the last year he was waiting for 4 years to happen. Most cash flow does not come from the ticket but from the food. It has finally hit the company that traffic is lower and will be forever. The stock has now reached the level it was going to drop to anyway. This is the time to average down.

They missed earnings just yesterday. Box office is still 70% of their revenues. Trading at 23 times 2018 the stick is still not cheap. They are growing the other businesses. The film slate will probably come back. The balance sheet is stable. Paying a 6% dividend.

The world has gone negative on it. There was a perfect storm last year. AMZN-Q was going to clobber them. A lot of bad news has been baked into this stock. They are at 65% payout ratio so it is safe. He is looking at it because they are down and dirty. Bad news will be over on a go forward basis, he thinks.

Starting buying this in 2001. It worked beautifully. Cineplex has raised prices, has put customers in premier offerings and diversified its offerings. The yield is safe though unsure it it will rise. Getting 10% free cash flow yield. Wouldn't be surprised if private equity or an activist stockholder stepped in. He's still a firm believer in CGX, a very viable company.

One of the goods things is that it is a dominate player in the sector. He has seen them diversify into gaming, VIP sections, and other areas. Without knowing the numbers of the company, he can’t make a strong recommendation. Yield 5.5%. (Analysts’ price target is $38 )

(A Past Top Pick on May 17, 2017, Down 38%) He owned this for a long time, but in Q2 2017, their earnings revisions weakened, then Q2 results showed theatre visits were down. He exited. He doesn't buy turnaround stocks, which may happen here; he buys stocks that keep rising. This stock is broken with a weak earnings picture.

She has held this for a long time. Cineplex is diversifying away from box office, which still accounts for 50% of its revenues. For example, they are expanding into restaurants in their entertainment centres, and so far that's doing well. Give it time. Today, there are many ways to watch movies, so the theatres have to offer "big" films. Nicer seating and alcohol service help.

He owns it. Shares are decently valued now trading at 10.5 times enterprise value over EBITDA. Down from 18 times in 2015. Dividend yield is 5.4%. Strong movie slate this year. The premium movie platform is working for them Strong management.

They are now under a bit of stress because people find other ways of spending their free time.

He is a big customer of the company. But the industry is 100% dependent on Hollywood. It has not been a huge box office year. They are taking measures to diversify away but still basically a movie, bum-in-the-seat business and going to have problems until Hollywood come with movies people want to see.

Concerns that people are going to stop going to the movies affected the price of the stock. Traffic has come down in 2017 but the company manages to make people spend more money once they are in the theatres. The digital media business is getting traction. The valuations have already been hit. The dividend is not going to be cut.

A contrarian call. Real growth is in concessions and the Rec Room operation, not the slate of movies. Boasts 10 times earnings and a 5.3% yield.(Analyst's price target is $39.72.)

Has owned this stock for a number of years. 75% of its revenues are box-office related and traffic has declined. They are diversifying with a restaurant chain and TopGolf. Their goal will be much less reliance on the box office, over the next 5 years. Decrease in traffic is reflected in share price, dividend yield is over 4%. They will report on Feb 22. She thinks the movie lineup over the next 6 months looks good, which can help traffic improve.

Wants to cry on his popcorn every time he looks at this stock price. It has been a long term holding for his clients. The US exhibitors are doing lousy. Short selling pressure on the stock. He thinks they are going to surprise in 2018 and 2019 is going to be amazing in 2019. He thinks they are going to surprise with higher dividends. For a brave investor it is a buy.

A fairly controversial stock in Canada right now. Down 18% YTD. Has a fairly dominant position in the movie business, but this is an industry that is going through a lot of change. People are concerned about a variety of factors such as home viewing of movies, a shorter release cycle, etc. It is somewhat unique compared to the global or US theatre exhibition companies, in that they have a very strong market share in Canada and an attractive dividend yield. They have more advertising in the business and are diversifying with things like Rec Room. With the recent selloff, it is starting to look pretty attractive and he’s taken a very small initial position. Dividend yield of 5.6%.