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JimVanMeerten (63.37)

Let's go to the movies with RDI

Recs

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August 04, 2010 – Comments (0) | RELATED TICKERS: RDI

On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio.

I'm adding Reading International, Inc. (RDI) to the Barchart Van Meerten Speculative portfolio. They are engaged primarily in the ownership and management of commercial properties but not just any properties. They focus on the development, ownership, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. They operate multiplex theatres; and are involved in real estate development and the rental of retail, commercial, and live theater assets. The company anticipates opening of two newly leased cinemas: one in Newcastle NSW, Australia with eight screens with opening scheduled in October 2010; and the Angelika branded cinema in Merrifield, Virginia, with eight screens, with anticipated opening in late 2011.

Reading’s Cinema Exhibition segment owns and operates 53 cinemas with 425 screens, had interests in certain unconsolidated joint ventures and entities that own an additional four cinemas with 32 screens, and managed two cinemas with nine screens. If movie attendance keeps increasing they will benefit.

Although REITs usually benefit for not only from rents on the owned properties but also the increases in the value of the underlying properties this REIT also operates many of the cinemas themselves so you have a triple play:
1 - Rental income

2 -  Property appreciation

3 -  Profits from the cinemas

Now for the 6 technical reasons to buy the stock:

1 - 17 new highs in the last 20 sessions including 5 in the last 5

2 -  18.62% price appreciation in the last month

3 -  80% Barchart technical buy

4 -  Trend Spotter (tm) buy signal

5 - Trading above it's 20, 50 and 100 day moving average

6 -  Relative strength indicator is above 50 at 75.87

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication

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