Topic: How To Invest

Hi, Pat: Could you please comment on Cineplex Inc.? Is it a buy, sell or hold? Thanks.

Article Excerpt

Cineplex Inc., $42.76, symbol CGX on Toronto (Shares outstanding: 63.0 million; Market cap: $2.7 billion, www.cineplex.com), is the dominant movie theatre operator in Canada and the fourth largest in North America. The company owns or has interests in 161 theatres containing 1,639 screens. Its brands include Cineplex Odeon, Galaxy, Scotiabank Theatres and SilverCity. Cineplex takes in about 80% of Canada’s total box office revenue. Cineplex continues to invest in new growth projects, including adding more VIP theatres with amenities like alcoholic beverages and reserved seating. It’s also increasing its revenue with exclusive attractions like Bollywood films from India and live performances from the Metropolitan Opera in New York City. In the three months ended June 30, 2014, Cineplex’s revenue rose 7.2%, to $323.5 million from $301.6 million a year earlier. That’s mainly because the company paid $194 million for 24 theatres in Atlantic Canada in late 2013. The new screens contributed $22.2 million to Cineplex’s revenue in the latest quarter. The company also benefited…