Carmike Cinemas’ share price is up 166% in the last two year, but that’s not necessarily a good thing, according to research analyst Gary Bourgeault. This long article looks at Carmike’s rollup and acquisition strategy, whether it will be bought by a larger competitor and what price is right.
Carmike has chosen to grow via acquisitions, contrary to its competitor AMC Entertainment (AMC), which is focusing primarily on quality rather than quantity. Nonetheless, Carmike has been able to grow revenue and earnings per screen while adding more theaters to its circuit.
Now, the question is whether or not the acquisition strategy and performance of its individual theaters is reflected in the share price, or the company has heated up too much and is overvalued.
Another catalyst to contemplate is that Carmike is considered a prime candidate for acquisition, as it moves toward its goal of owning 300 theaters and 3,000 screens. At the rate it’s growing in this consolidation atmosphere, I think part of the reason for the surge in share price is the inclusion of the possibility of being acquired by one of its larger rivals. LINK
Just as with his incisive piece of analysis about AMC, I urge you to read this article in full.
USA (NY) - Physical attacks on people trying to enjoy a film without others talking are not being taken seriously enough. This dad was attacked by eight people. Will it take another shooting? Justice has definitely not been served in this case. You can read here what originally happened.
In the case of last summer’s vicious attack at the Bow Tie Cinema by a gang of teenagers on an innocent father trying to enjoy a night out with his daughters and their friend, justice for the victims is nowhere in sight.
During the June 28 incident, a Niskayuna man suffered a severe concussion, a broken hand, a damaged tooth and other scrapes after being repeatedly kicked and punched by a group of out-of-control teenagers. One of the man’s daughters also was punched in the face and had her cell phone stolen. LINK