Regal Entertainment Group (NYSE:RGC)

CAPS Rating: 1 out of 5

The Company operates as a theatre circuit in the United States. It is a motion picture exhibitor.

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Player Avatar Morbaine (56.80) Submitted: 6/29/2007 10:24:36 AM : Underperform Start Price: $14.78 RGC Score: -4.15

The company is burning through cash, I doubt they will be able to maintain their dividend.

Their yield is one of the reasons many people own it and if that disappears, the stock will suffer.

The theatre industry, like fitness clubs are difficult to run long-term. The margins stink and you have to constantly reinvest in long-term assets and renovate or your facilities will become run down.

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