Time for Investors to Go to the Movies: Regal Entertainment Group (RGC) and More

Future years look bright as well.  Disney has plans to revive the Star Wars franchise.  The company will release three more Star Wars films in the coming years and also has plans to release spin-off films based on individual characters.  In addition, Disney is continuing to leverage the power of its Marvel comic character movies.  Other releases, including TheHunger Games, The Hobbit, and Star Trek, should drive plenty of traffic into the theaters for several years to come.

The Bottom Line

Cinemark appears to be the most attractive way to invest in the theater business, given its growth rate and reasonable price.  It’s not only an investment in the continued power of the theater business in the United States, but it’s an emerging market investment as well.  The future growth of Cinemark will almost certainly come from countries like Brazil, Mexico and Argentina.  These are places where the consumer is gaining traction and their economies are becoming consumer-driven.

Movie theaters aren’t recession-proof, especially in the emerging markets, but they are highly recession-resistant.  The durability of Cinemark’s business makes it a very attractive company.  As a side note, many of the same institutional shareholders of Disney also own shares of Cinemark.  That may not be entirely coincidental since Disney is slated to release many powerful franchise films in the coming years.  The bottom line is that Cinemark looks like a great investment in both the U.S. and emerging markets.  I think it’s time for investors to go to the movies.

The article Time for Investors to Go to the Movies originally appeared on Fool.com and is written by Frank Constantino.

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