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

Does Regal Entertainment Group Have Any Significant Catalysts?

It looks like Regal Entertainment Group (NYSE:RGC) could come under pressure, as it has little in the way of catalysts under its control that point toward future growth. I say 'catalysts under its control' because there is always the box office catalyst, which it has no control over.

Contrary to its major competitors Cinemark and Carmike - which in the case of Cinemark has international growth prospects, and with Carmike domestic growth potential because it has under 3,000 screens at this time - Regal has pretty much saturated the top markets in the U.S.

It would have to expand to more smaller markets, which don't command the pricing power it now has at its existing theaters. It also...

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