Cineplex Inc (CGX.TO)

(A Top Pick Feb 19/13. Up 24.66%.) Still likes this. The upcoming movie slate for this summer has some duds but has some good ones as well. This is really about the social aspect of movies. The company keeps increasing their average revenue per patron. Also, increasing their digital advertising as well. The company has about a 74% market share in Canada, basically a monopoly that nobody knows about.

Surprises and surprises. He made the mistake of selling it. Take a partial position now. You want to see a lot of volume through the theaters because it is the food, not the tickets.

Someone came out recently and cast aspersions on this stock which knocked it down, so he bought a little more. Good diversification. Yield of 3% plus is okay. Acquired some Maritime assets that they are converting. This company has such a strong position in Canada that it doesn’t really have a huge amount of competition.

Closed at $41.06 and his model price is $41.32, bang on. Would love to get the stock back to the $32 level. Yield of 3.5%.

Caller is a swing trader (Couple of weeks). You always want to look at one cycle back from the current. When this stock goes below 50 day, it is probably a buying opportunity. You want to look for a big down move early in the day and then it closes back up. This is the signal to look for before getting in fully. Put a half position in at the bottom and the other half if you get the reversal.

Excellently run, very sophisticated company. It is the popcorn as well as the movies and it is the giant in the business. He can’t see any reason that it would descend. It is high quality.

A great growth play in Canada. They definitely have control over a number of theatres, almost a monopoly. Picked up a number of theatres off of Empire. Have a very big footprint when you think about buying concessions, marketing plans and advertising.

A good time to take some profits. Reported good earnings this morning although a little bit less than analysts’ expectations. He prefers some of the US chains. CGX has a premium multiple and he questions how much more room they have to grow. They are an acquirer but in this case things they could be acquired themselves.

Excellent and pays a tremendous yield. Very creative and knows how to make lots of money out of adjuncts to its main screening purpose.

Thinks this is a component of the consumer discretionary, one of our stronger sectors. It is extended, but these extended plays stay extended for a long period of time. Chart shows a long upward growth channel. It wants to work higher. At the top of its channel it trades sideways, which is bullish after a move. If you are Long be patient as it will work sideways getting close to that growth channel before another advance comes in. You should avoid acquiring at the top of a channel.

He would be more interested in this under $40. However, it looks like they have a good winter ahead of them with some blockbuster type movies coming down the pike. Have done a great job with refurbishing their theatres. They bought a chain from the East that he feels they will bring in line so he is anticipating that earnings growth will continue. Increased their dividend last year, so it is a little bit much to expect an increase here.

Extremely well managed, one of the best management teams in Canada. Not sure how they can boost prices much more. Diversified into digital media advertizing. A bit on the expensive side but dividend is safe. They have room to grow the dividend but earnings fluctuate with the movie slate.

Every time she tries to trade this, she has to buy back at a higher price. Acquired some of Sobey’s movie theatres last year and this will be accretive next year. Incredibly well run and always expensive. They are increasing their dividend.

67% of the Canadian market. We love to be entertained. Had record attendance which means concession revenues are huge. He likes it. It is a pretty good buy right here.

One of his favourite “buy and hold” names. There is a high barrier to entry. Almost a monopoly. Have a great relationship with distributors and advertisers.