Cineplex Inc (CGX.TO)

Just reported and their earnings looked pretty good. Have had a record performance from Star Wars, and Jungle Book is doing very well. They are growing out their media division and also want to build out an entertainment/gaming division. (See Top Picks.)

He still likes the name. Great branding in Canada. They have the benefit of the strong slate of recent and upcoming movie releases. Strong attendance numbers have lifted concession revenues nicely. It is a low beta name. 3.07% dividend.

Dominant movie theatre operator in Canada. It is priced higher than US peers, but they are pretty good at driving traffic through their theaters and increasing concession spending. She continues to like it. 3.5% dividend.

Would love to buy this at $46. His model price is $41.53, a negative 17%. If we go through another January, or have another correction like August, the stock comes down. Would buy this at $42.

Just reported and they were good numbers. A good slate of movies has helped traffic. Very good operators. They are always able to improve their revenue spend per patron. Have been able to increase their concession spend. They are trying to diversify their revenue base by getting into online gaming. Dividend yield of 3.2%.

(His top picks are dividend growers.) 2015 was the best year of box office that we have ever seen. These are wonderful operators. They generate a lot of free cash flow that they use to improve their theatres. They are now getting into gaming. There is even the potential for a US company to take a look at this, to get exposure to Canada. Thinks you will see a dividend increase in 2016. Dividend yield of 3.25%.

One of the best media companies in Canada. Very solid management. Their original business was movies, but they have diversified into digital advertising. Have also upgraded their studios where you can order a glass of wine, reserve seating, etc. Also, getting into arcade and vending. In the future, they are looking at having bigger restaurants that can be combined with the Cineplex. Very dependent on what Hollywood is producing and showing. Good margins on the popcorn and soft drinks. This is a good price. Dividend yield of 3.3%.

(A Top Pick Jan 14/15. Up 9.82%.) Still loves this. One of the best managed companies in Canada. Have done a brilliant job of taking dinner and a movie, and turning it into an entire Cineplex experience. Have 70% of the screens in Canada and they have pricing ability. They have 3-4 more years of CapX, after which they are probably going to buy back shares or kick their dividend higher. Dividend yield of 3.36%.

Stock vs. Stock. CGX-T vs. DIS-N. CGX-T is in the exhibition business and DIS-N is in the marketing and production business. CGX-T is a very smart company and he has owned it for years. They make money on the concessions, airline entertainment, the advertising and the movies. They are building out theatres into entertainment complexes now to add to their revenue streams. DIS-N makes money with their movies, but to him CGX-T is less risky.

She is positive on the movie slate. They are continuing to raise the dividend. They are opening the ‘rec room’ concept and bought an online gaming company. They are good at finding other ways to make money from their theatres.

Down about 10%, but that doesn’t matter a whole bunch. That is pretty much what a lot of stocks have done, but that doesn’t take away from the fundamentals behind it. They are doing great things about expanding their non-movie activities. The dividend is fine and will continue to grow. This is a good buy here.

A simple business for investors to understand. All of it is setting up really nicely for 2016. Doesn’t see why this would not be a good investment for an RRSP investment.

A bit of a steady Eddie in this market environment. Not the cheapest stock out there, but they have done a good job of justifying their valuation. They continue to grow revenues and their earnings. Have about 80% market share of Canadian theatres and are branching out from that. Very good at selling concessions to clients in those theatres. Have all sorts of different drivers of revenue inside the theatre. Branching out into a new concept called The Rec Room where they will have entertainment centres across the country. Also, moving into E gaming. Dividend yield of 3.3%.

Likes the stock. In the near term it will benefit from a couple of strong Q4 movies that are coming out. Looking out to 2016, there is a very strong slate of movies, and they will benefit from that. Also, likes that they are diversifying into different spaces. They just bought World Gaming, the electronic sports game company. Good dividend at about 3%.

(Market Call Minute) A recent seller on valuation. It is a wonderful company, but too expensive for him. Buy at $45.