Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Cinemark's International Presence May Be Underrated

Even though Cinemark (NYSE:CNK) has come off a strong quarter, it has been vastly underperforming its major rivals Regal Entertainment Group and Carmike Cinemas over the last 12 months. As of this writing, Cinemark is up only 12.64% over the last year, while Regal Entertainment Group is up 35%, and Carmike a huge 72.67% during the same period.

With revenue in the third quarter jumping, and concession sales up over 21%, it has been surprising to some that the company lags so far behind its major competitors.

I see it being the increasing amount of capital expenditures, and the uncertainty of when it will be used throughout 2014 as being the main reason for the poor performance of...

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