Opinions
Stephen Takacsy, B. Eng, MBA
D-Box Technologies
DBO-T
PAST TOP PICK
Mar 22, 2016
Stock price when the opinion was issued
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While blockbuster movies, like Black Panther, are helping theaters now, box offices are facing significant challenges. Reflecting the challenge, theaters are replacing their current seats with recliner style seats, which is what D-Box offers. Their seats also provide shake-and-quake with the movie. They are now sharing in theater revenue, and Cineplex is continuing to reorder these seats for additional locations. As adoption increases, there is more recurring revenue. The company is not yet profitable. There is an expected loss in 2018, breakeven in 2019, and earn 3 cents per share in 2020. This looks like a reasonable investment over the next three years.
Seats for movie theatres. They also make them for simulation in other industrial applications. They have been releasing better and better results and no analyst has caught on to it. They have huge customers in Canada. It is only a matter of time when these seats catch on in Canada.
He is not sure why the stock is doing so poorly except that money is being sucked out for other sectors. A lot of these companies have never been better valued. They had a great quarter last quarter. They announced a lot of new systems post-quarter. They are reinvesting in sales and marketing. The sales have never been better. He is holding on. It needs a large announcement with a large US chain.
(Top Pick Apr 27/15, Up 32.26%) A Play on technology. The seats that move in theatres. They have really blasted off. They announced record results since he talked about it. There were huge announcements including initial rollout with Cinemark, 80 screens. All the US chains will follow suit. It is the beginning of a huge growth phase. CGX-T announced a continued huge rollout. There is a huge market in the industrial sector in training. With virtual reality there is talk of combining VR with motion in the seat. They are making money and have a record backlog. These are early days.