Stock price when the opinion was issued
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.
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.
Motion seating for theaters. They are getting into a bit of a problem. Markets are going to stop caring about them. The bottom line is doing nothing.