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Buyout of CKEC now more possible being down -4 today or well over -20%



May 04, 2010 – Comments (0)

If anyone remembers back to March 22, 2010 analyst comments suggested a merger in the film sector was very possible with bigger fish gobbling up the smaller ones.

Barrington initiates the Film Exhibition industry : Barrington says they view the film exhibition industry as an attractive sector, reflecting a variety of favorable attributes. First, the core business has shown exceptional resiliency throughout economic cycles. Given the turmoil in many media and entertainment sectors, this alone should provide some investor comfort. Second the firmsays, several newer catalysts exist, including digital, 3D, advertising, and alternative content. Third, physical plant and financial issues that have posed risks in recent years are being dealt with successfully. Fourth, the potential for growth and improving productivity exists both organically and through acquisition in a space that includes several large players and a large group of smaller entities. The firm iniitates Cinemark Holdings (CNK) and IMAX Corp (IMAX) with Outperforms and $22 and $20 tgts. Firm also initiates Regal Entertainment (RGC) and Carmike Cinemas (CKEC) with Market Performs.

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