Johannes Salim, CFA
CFA, long/short equity, hedge fund manager

Carmike Cinemas: Running Ahead Of Fundamentals?

Carmike Cinemas (NASDAQ:CKEC) is the fourth-largest theatre chain in America. With 252 theatres and 2,660 screens as of December 2013, Carmike is much smaller than the top three operators: Regal Entertainment Group (NYSE:RGC) (580 theatres/7,393 screens), AMC Entertainment Holdings (NYSE:AMC) (345 theatres/4,967 screens), and Cinemark Holdings (NYSE:CNK) (334 theatres/4,233 screens). What's piqued my interest is that since January 1st of 2013, Carmike's share price (+114%) has way outperformed Regal's (+39%), Cinemark's (+18%), and AMC (+42% since its IPO on 20 Dec, 2013). Hence, in this article, I would like to take a close look at the fundamental story of Carmike and see what has been discounted in its share price.

Going on...

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