Cineplex Inc (CGX.TO)

Three kinds of seats: with VIP you can have wine and a roast beef sandwich. You can spend a lot of money on a movie. Good dividend yield with a history of increases. Earnings reported this week so wait till they come out.

(Market Call Minute) Prefers Cinemark Holdings (CNK-N) in the US.

This has diversified itself away from the film place. The box office is now only about 50% with concessions at about 30%, and they are getting into E-gaming, building out the rec room, digital signage. He sees them being able to earn 15% compounded annual growth rate over the next couple of years. Pretty expensive relative to its 5 year, but if we are in an environment of multiple expansion, this is a good one to own.

(A Top Pick July 8/15. Down 15.21%.) (Long CNK-N) Feels this is one of the most over owned companies by Canadian institutional managers. Relative to its US peers, it is very expensive.

A stable generator of cash and free cash. Has about 80% of the marketplace, and they are the game in town. You spend a little bit more money every time you go in. They have a media division, the concessions, etc. A wonderfully operated company. Dividend yield of 3.11%.

(Market Call Minute) It ranks well with him.

(Market Call Minute.) Great company and great growth rate. Diversifying in other media. A name you want to own, but it is trading above its five-year average.

The largest theatre operator in Canada. The one thing they cannot control is the type of movies that is going into their theatres. Had a very good past year and there is a good slate coming up. Very good operators and are increasing concession per spend. Also branching out into new areas such as family entertainment centres. Also, slowly increasing their dividend. Dividend yield of 3.1%.

(Top Pick Jun 15/15, Up 12.25%) He has held it for 15 years or more. He heard that VHS was going to kill this company :)

They have done a great job of executing. It has been a good year with Star Wars. It might be a tougher year next year. They recently made a new high, but looks like it is ready to lift. He would have no problem owning it. This one is attractive from a yield (3.1%) point of view.

(A Top Pick July 16/15. Up 9.57%.) His largest position across all his portfolios. Still a Buy. Thinks they are going to have a series of their best years ever. In about 3 years, their CapX falls off, and then the dividend will really go up. Growth is coming from their ability to put people into more expensive seats.

Not as cheap as it used to be. Has been a core holding for him for many years. It had a very good rally along with many other consumer stocks, so it is getting a little bit pricey, but the business is doing well. Had a great year with Star Wars. They keep finding ways to grow revenue outside of the box office. They are also growing a pretty nice media business as well. 3.2% dividend yield.

(A Top Pick May 12/15. Up 8.04%.) The largest movie operator in Canada. They can’t control the film slate, but it has been very good so far this year. They are very good at driving concession spending which has been growing. In addition to their movie operations, they are going to open up Rec Rooms, entertainment centres offering pool, bowling, upscale dining, etc. Still a buy.

Continues to like this. It’s a great long-term story. Likes what they are doing over and above the straight cinema exhibition. Ticket prices will probably continue to go up along with everything else. They are dependent on the quality of movies coming down the pike, but there are other aspects of their offerings to the public, and he likes all of them.

It is dependent on the movie cycle. Consumer discretionary can suffer in the summer. We are trying to break above the resistance line. It is a consolidation that is taking place. We are at the top of the trading channel. He would exit and look to buy at the bottom of the trading channel.