Regal Entertainment Group (RGC)

Mmm...movies...

I own this stock, and it performs well in down times.

Hate Regal. Hate them so much...

good movies theathers

Hot summer months - airconditioned theaters - summer blockbusters

People aren't going to be going to the movies in this depression. Once gas is back at $4/gallon and the unemployment rate is 15%, staying at home and watching TV is going to seem a lot more appealing.

Burning through its cash as of late, Regal also cut its dividend. While that may look bad, it gets worse when you realize that the company has a negative net tangible asset value. Can't look to this company for growth either, in my opinion, as they seem to be scaling back on capital expenditures.

If RGC continues to give a .30 cent dividend at a little over $10.00 a share that is a easy 10% profit just from the dividends alone.

RGC traded above $15 from May 17th 2002 till October 1st 2008 when the market really took its big beating. That is a discount $5.00 at the minimum.

Their margins are about to implode.

Same concepts applies as for GLW, had heard something about the new tech for the RGC cinema coming in next year

In a down turn people go to the movies.

this stock has been steady with the S&P but with the summer months coming, I can see it outpace the S&P until the end of the year.

The reasons I am long on exhibitors have mostly to do with the foreseeable impacts of digital distribution. I would be interested to know what others think about the following impacts of this phenomenon.

The obvious benefit is the ability to run blockbusters on all/most screens, which was previously prohibitive because of the cost of prints (distributors never know in advance how many to send, and often send too few, causing exhibitors to turn people away from Harry Potter on opening weekend even though the Simpsons is running on two screens half empty). Similarly, a smaller film that is an unexpected success can be ramped up more quickly. This gives managers a lot of flexibility for revenue management.

Second, is the prediction that digital distribution will allow the proliferation of alternative content (U2 concerts, sporting events) that can be used to fill theaters on off nights. (theaters make most of their money on weekends, so extra weekday sales go strait to the bottom line).

Finally, 3D is on its way. Gimmiky or not, everyone is going to want to see the new generation of 3D films. even people who don't normally go to the movies. I think that Beowulf's box office success has shown that.

I realize that some of this is speculative, particularly with respect to timing, but also cost of implementation and audience response, but RGC pays a pretty good dividend to see how things pan out. As long as its debt doesn't get it into trouble...

nice dividend

At $21.50 a shr, cheaper than a movie ticket w/ popcorn and soda. Movie industry has had a respectable summer. This is a true value stock w/ P/E of 10.7 and a 5.5% yield.

foundamentals are sound, could be better, but it's a great industry to be in. i mean, do you think hollywood is going to stop making movies? they have a target on suburban markets, which is a prime target for movie entertainment. however, this stock won't be without a rough year or two. will be a good long-term pick

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.

I usally don't like to "pitch" my picks, but i just started playing on this site again so maybe i'll stop being such a lazy bitch. Why should you own REGAL ENT? Well, they have a really really nice dividend. Not to state the obvious, but this summer has been coined "the summer of the sequal" with 14, that's right 14 sequals coming out. We just saw how well Spidey did... Another factor to consider is AMC was supposed to IPO 05-05-07 but pulled it (again) and if i'm not mistaken, which i'm sure i am Cinemark is RGC biggest PUBLIC competition and that the company might as well be called "Cine-missed-the-mark." Wow, that was bad!!!!!
Cheers and go see you're movies at a Regal Theater.

Regal Theaters.Operates movie theaters. As of Dec. 29, 2005, the company had 6,463 screens in 555 theaters in 40 states, and operated its theatre circuit using its Regal Cinemas, United Artists and Edwards brands.Paying 5.8% dividend. should grow syock price as mivie going becomes most affordable entertainment option for cash squeezed middle and blue collar workers.