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

Is Carmike Cinemas Climbing Too Fast?

The share price of Carmike Cinemas (NASDAQ:CKEC) has soared over 100% over the last year, and is up over 166% over the last two years. Because of this, there is a growing uneasiness concerning whether or not the share price has outpaced the underlying fundamentals of the stock.

Carmike has chosen to grow via acquisitions, contrary to its competitor AMC Entertainment (NYSE:AMC), which is focusing primarily on quality rather than quantity. Nonetheless, Carmike has been able to grow revenue and earnings per screen while adding more theaters to its circuit.

Now, the question is whether or not the acquisition strategy and performance of its individual theaters is reflected in the share price, or the company has...

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