Shares of movie theater operator Regal Entertainment Group hit a 52-week high today — $21.08.
The Knoxville based company has seen its stock price climb slowly but steadily over the last 12 months. Since Jan. 1, shares have gained more than 8 percent.
In early afternoon trading, the price had slipped back from the 52-week high, trading at $21.02, up 11 cents from Tuesday’s closing price.
At least one analyst thinks Regal, the largest movie theater operator in the country, could see its shares hit $23 by the end of this year.
Writing for the financial website Seeking Alpha, research analyst Gary Bourgeault says:
“If it is able to sustainably trade above $20.00 per share, I believe the company will be rewarded by investors. With the summer season upon us, and the holiday season to follow, I see the share price of Regal breaking the $23.00 mark by the end of 2014, as blockbusters like The Hunger Games and The Hobbit are released, along with the ongoing benefit of an increase in adjusted EBITDA to $137 million in the first quarter, with expectations that should continue to grow through the end of the year.”
Click here for Bourgeault’s full report.
Movie theater operator Regal Entertainment Group reported record high fiscal second quarter revenues, but a slight decrease in profits. Next week, investors will find out if the trend continued in the third quarter.
The Knoxville-based company said it will post its quarterly financial report after the market closes on Oct. 24. A conference call with analysts will be held at 4:30 p.m. following release of the report.
Given a strong box office in recent months, Regal likely will report a good, if not record-breaking revenues, for the fiscal third quarter.
But what can shareholders expect in the long-run? Since the first of the year, Regal’s shares have gained more than 38 percent. Will that kind of growth continue?
Chatter from stock watchers on the Web is generally positive.
Here’s an excerpt from a Motley Fool report:
“Regal Entertainment delivered a lot of impressive numbers in Fiscal 2013, including a 3.6% increase in attendance and a 0.3% bump in average ticket price. However, comp screen attendance dropped 2.4%. The improved attendance occurred because of the company’s recent acquisitions, instead of repeat moviegoers. This likely indicates that fewer people are going to the movies than in the past, which would make Regal Entertainment’s potential to grow the top and bottom lines simultaneously very challenging. That being said, shareholders should take heart as Regal Entertainment is willing to close under-performing theaters — it closed six theaters (52 screens) in Fiscal 2013.”
A Seeking Alpha contributor is even more bullish on Regal:
“While shares of Regal Entertainment have rallied nicely from here, I believe the bull run is far from over. The movie-going business has proven to be extremely resilient, virtually immune from home watching with annual sales growth of 3%. At the same time, Regal has recognized that increased concession sales are far more lucrative than increased ticket sales and has focused its business appropriately through expanded menus and a pilot dine-at-your-seat program. These factors will help RGC grow faster than the industry while improving overall margins.”
Regal is the largest movie theater operator in the country with more than 7,300 screens in 575 theaters nationwide and Guam, Saipan, American Samoa.
Click here for the Motley Fool analysis.
Click here for the Seeking Alpha report.
Is Green Mountain Coffee Roasters a merger target? If so, what does that mean for the company’s relatively new roasting and distribution plant in Knox County?
Green Mountain Coffee
The maker of the Keurig single cup brewer system has seen its share price plunge from nearly $116 a few months ago to less than $18 today. As its stock has spiraled lower, talk of a takeover has increased.
Green Mountain expanded to Knoxville in 2008, investing millions in a distribution and production plant in Forks of the River Industrial Park, where it employs several hundred workers.
Miller Energy Resources has received its share of online criticism in recent months – that’s what happens when you have to refile corrected financial reports and a class-action lawsuit hangs over your head.
But in a somewhat surprising turn, the Knoxville oil company has been the subject of positive online commentary in recent days.
A report posted today on the website Seeking Alpha by an anonymous contributor called Rougemont includes Miller among a group of undervalued oil stocks.
Like a number of very successful companies, Knoxville-based Scripps Networks Interactive Inc. is sitting on a big pile of cash. We’re talking several hundred million dollars.
Having a lot of cash can be comforting in an uncertain economy, but is it really a good idea? It used to be “considered bad form, even indicative of poor management” to have too much cash, Daniel Carver writes in a piece for the website Seeking Alpha.
Carver looks at the cash holdings of five companies — Scripps, Google, Tiffany, Analog Devices and Xilinx. His comments about Scripps Networks are less than enthusiastic.
Today’s market rally is boosting a couple of stocks of local interest that have struggled to hold their value in recent weeks.
Shares of Maryville-based restaurant chain Ruby Tuesday were up about 3.3 percent at midday to $6.92. Shares of Green Mountain Coffee Roasters, which has a major roasting and distribution operation in Knoxville, were up about 3.6 percent to more than $51.
However, RT stock remains close to its 52-week low, and GMCR has seen its share price cut in half in the last two months. Check out these online commentaries about Kevin Clayton’s recent purchase of RT stock; and Green Mountain’s rapid price drop.
TheStreetSweeper has a particularly critical report that questions the value of the company’s Alaskan assets, among other things.
StreetSweeper also takes a jab at Miller CEO Scott Boruff’s purchase a few weeks ago of Villa Collina, a 36,720-square-foot mansion Knoxville; and his use of a company airplane for trips to the Florida beach and “to or from a small town in Delaware – located near the home of the CEO’s girlfriend …”