Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Regal Entertainment Group (RGC), Dreamworks Animation Skg Inc (DWA): These 4 Stocks Are “Future Proof”

Page 1 of 2

Blockbuster, Borders, Circuit City; it seems like every day technology is putting another household name out of business. While investing has always been about anticipating “what’s next,” today’s investors have to be especially careful. For today’s investors a rock solid company with a wonderful history can literally become worthless over the course of one short year.

But because of this technological disruption, I feel that some investors have become too trigger happy. There are some “old school” businesses that are holding up fairly well, and they should do well going forward.

These four businesses are “future proof,” no matter what the cynics say.

Silver screen stocks

With technological advances, like bit torrent and the endless new ways to view movies, many investors have been worried that the cinema may go the way of Blockbuster video. But did you know that U.S. box office revenues have actually doubled ($10 billion vs. $5 billion) since 1995? In part growth is due to ticket price increases, but even the amount of actual ticket sales has also increased by over 15 billion per year. I find it surprising that this industry has seen any growth at all, if you’ve listened to some pundits you likely would be surprised too.

Regal Entertainment Group (NYSE:RGC)

The industry has held up well but is still surrounded by negative sentiment and worry, because of technology, in my world we call that opportunity. One nice way to play the silver screen value is with Regal Entertainment Group (NYSE:RGC) and Cinemark Holdings, Inc. (NYSE:CNK), two large theater holding companies. I think it’s safe to say, when you look at this weekends record box office sales for Man of Steel, people are still loving the movie going experience. Those record sales can’t happen without both Regal and Cinemark profiting.

The steadiness that these companies revenues offer allows them to pay outstanding dividend yields. Cinemark’s dividend currently stands at 3% and Regal Entertainment Group (NYSE:RGC)’s dividend is a whopping 4.7%! Not bad for two companies that have had large price increases recently, and they both still trade cheaper than the market today–with forward P/E ratios under15.

Regal Entertainment Group (NYSE:RGC) saw its earnings increase more than double last year, but if I had to choose just one going forward it’d be Cinemark. While Cinemark pays the lower dividend, its earnings have grown at 11% annually the past five years. I like Regal, but the slower growth combined with an increasing dividend does make it a slightly riskier play than Cinemark.

Speaking of risk if you want a high risk, high reward, play in this space you should consider Dreamworks Animation Skg Inc (NASDAQ:DWA). DreamWorks had been all but left for dead by the market last year, but now there are some signs of life. I think one thing that’s lead to Mr. Market’s discounting of this business is a fundamental misunderstanding of how it works. DreamWorks isn’t going to see the steady income that Regal and Cinemark enjoy, because it only makes money when it produces a hit. That’s actually the good news if you’re an investor.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!