CNK

Cinemark Holdings Inc

TMT, Consumer


Presented:06/05/2020
Price:$17.64
Cap:$2.07B
Current Price:$28.71
Cap:$3.51B

Presented

Date06/05/2020
Price$17.64
Market Cap$2.07B
Ent Value$4.15B
P/E Ratio20.93x
Book Value$10.67
Div Yield7.82%
Shares O/S117.59M
Ave Daily Vol5,576,942
Short Int13.64%

Current

Price$28.71
Market Cap$3.51B
Cinemark Holdings, Inc. is a holding company, which engages in the provision of motion picture exhibition through its subsidiaries. It operates through the U.S. and International segments. The company was founded by Lee Roy Mitchell in 1984 and is headquartered in Plano, TX.

Publicly traded companies mentioned herein: Cinemark Holdings Inc (CNK), Walt Disney Co/The (DIS)

Highlights

The presenter is long shares of Cinemark Holdings Inc (CNK), the third largest movie theater operator in the US with 345 theaters and 4,645 screens (plus an additional 209 theaters and 1487 screens across 15 Latin American countries). He was short the stock from Fall 2019 through the COVID-19 trough, a timeframe over which the share price fell from ~$35 to <$10. He then covered his position and went long due to his belief that the market valuation reflected an overstated likelihood of near-term bankruptcy. Since the beginning of April, the stock has slowly appreciated and now trades at ~$18 per share. To the presenter, this position is an opportunity to profit from a cyclical improvement and an exaggerated, albeit real secular bear thesis. While he believes CNK can recover to ~$25 per share, the stock reaching $30 per share would likely cause him to revert to a bearish outlook. 

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