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Editor's notes: Concentration of voting rights and a CEO compensation package tied to revenue (rather than profit) are concerns, but Digital Cinema's roll-up model may prove extremely successful in an industry full of small independents ripe for consolidation.

Once you've been active in the markets for a while, you'll notice that certain business models are used over and over again. One of the more common ones is the roll-up model where a company executes multiple M&A acquisition transactions (typically of much smaller companies) to consolidate a market and achieve meaningful benefits of scale. Provided that the multiples paid stay under control (particularly relative to the cost of capital) and management doesn't lose sight of expenses, this strategy can produce some pretty significant growth.

That brings me to Digital Cinema Destinations (DCIN) - a small, but growing, operator of all-digital movie theaters. On one hand, I really like the company's strategy of acquiring small independents and...

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