Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Reading International: An Asset Play First, Earnings Play Second

Reading International (NASDAQ:RDI) ("Reading" or "the company"), of Reading Railroad Monopoly fame, is a chronically undervalued theater operator and land owner, with aspirations of becoming a real estate developer on the lands it owns. Reading still owns some parcels of land around its old railroad property in northeast Pennsylvania that it held before its bankruptcy in 1976. The company was purchased in the 1980s by its current Chairman and CEO, James Cotter.

Notwithstanding its long and storied history, Reading is currently only valued at $144 million and encumbered by $196 million in debt. Meanwhile, Reading owns many parcels of land, much of which just sits there, not producing cash flow and costing the company interest and other carrying...

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