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Andrew Shapiro

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  • Cinemark: Still The Best Bet In Movie Theatres? [View article]
    Don't disagree with the factors you cite favoring internationally diversified exhibitors vs US-only ones. In fact, I think there additional benefits that you did not mention.

    However, with your observation that Cinemark is a total return opportunity of 10% for the next 12 months, Reading International (NASDAQ:RDI) appears to me to be much better risk reward. Here are some articles

    Similarly solid balance sheet (Net of RDI's recent sale of two non-cash flowing development parcels, RDI's balance sheet is even stronger), substantial owned rather than leased real estate, far lower adjusted EV/EBITDA multiple and huge embedded unrealized gain and real estate development upside in several Reading parcels, particularly NY City.
    Aug 27 09:38 AM | Likes Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    revaluation process from Burwood being a sold just being discovered in the 6/30 balance sheet. What was strong just became much stronger.
    Aug 20 12:09 AM | Likes Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    thanks - appreciate the feedback and sharing/tweeting, etc the articles
    Aug 15 08:29 PM | 1 Like Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    Reading International just made the surprise announcement that Chairman and CEO James J. Cotter, Sr. has resigned immediately due to health reasons.

    Mr. Cotter’s children, who have been involved in Reading’s businesses, have been elected to lead the company.  

    Reading’s CFO, Andrzej Matyczynski, has also agreed to extend his current September 1, 2014 retirement date for three months, until December 1, 2014.

    The company’s 10-Q, which provides substantial detail on Reading’s assets and business operations, should be filed in the next few days

    Reading International Announces 2nd Quarter 2014 Results
    Resignation of James J. Cotter, Sr. as Chairman and CEO, and the Election of His Successors
    Aug 8 05:31 PM | 1 Like Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    PICO has owned their Class B forever and accumulated over time. Mark Cuban bought pieces in the open market including my former 13D position, which I sold to him for a huge premium to the greater # of RDI shares I bought with the proceeds.
    Aug 7 03:04 PM | 1 Like Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    DCX - Thanks for your comments. There are mixed views as to the reason for a trading discount. Some believe Cotter never will sell his undeveloped property and wants to develop it all, sometimes to the detriment of IRR. Few have the belief that he makes investments that lose money.
    Reading did NOT lose money on Burwood as I will highlight below.

    First, as to the value estimates. I was at the annual meeting where he opined the parcel was worth $75MM. This was a reasonable number in light of the appraisals he had in hand from RDI's initial attempt sell 40 of Burwood's 51-acres (residences and comm'l/residential tower) and imputing appraised values to the portion he planned for RDI to keep and develop into an entertainment-themed retail center (ETRC) with a large Reading Cinema multiplex as the anchor. The AUD is about 15% lower vs US$ than at the time of these estimates. So adjusted for the currency move, Cotter was slightly high ($64MM) and I was right in the range ($51MM-$76MM). As for the deferred date for the receipt of the money. The Burwood site is a former rock quarry and there has always been an soil environmental remediation contingent liability to deal with. Reading has annual cash outlays towards removing bad soil, accumulating clean dirt and would have increased outlays to fill in the pit properly. See the press release with the deal's details at

    Australand's quick close, in a matter of weeks, transferred RDI's increasing cash outflow remediation obligations from Reading immediately. That "savings" got negotiated in the price and the deal's installment payment terms.

    Also note, that 2017 is the back-end date for final payment. RDI is to be paid 90% of whatever Australand pro-rata develops and sells prior to that date. From this article it appears that Australand will likely be building and selling new homes or other portions of the parcel in 2016 or early 2017. They would also have to pay RDI should they sell or JV part of the parcel rather than directly develop it.

    RDI's book value already included AUS$23.3MM of non-cash mark-up on the parcel reflecting non-cash step-up in basis in connection with the 2001 TAXABLE merger of Reading Entertainment, Craig Corp and Citadel Holdings that created Reading International plus IMPUTED capitalized interest expense during Reading's development of the parcel. There has never been any debt encumbering the Burwood parcel and thus no direct interest expense outlays. Yes money is fungible so there is an 'opportunity cost' on the long period Reading held it. This impacts IRR, but RDI's cash outlay on the investment was approximately $27MM.

    I have written extensively on RDI's NYC properties and the rejection of the $100MM bid for Cinema 123 and Union Sq. See specifically and generally. IMO the cost to develop these properties into higher value and the SUBSTANTIALLY higher value to be achieved as developed justified rejecting Capstone's low-ball highly conditional bid.

    Cotter has always stated and proved disciplined to comm'l/retail development competence I think the company has - he doesn't directly develop residential and has and will continue to sell or JV residential development. If cinema 123's eventual development plan falls outside Reading competency, RDI will sell or JV it. Union Square will be in RDI's competency and be directly developed. As for Coachella Valley - always will be residential developed and sold by RDI. I have been critical of the distraction but the price was a pure steal and RDI will make a great IRR on this VERY small investment.

    Hope this helps.
    Aug 7 12:34 PM | 2 Likes Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    Thank you very much for appreciating the work I put into providing all those links and support information. That part and formatting seems to take as long as writing the text. One main reason I don't publish SeekingAlpha Pro, which puts archives back behind the 'pay-wall' after 30 days, is to be able to link to prior articles and save on repeating past detail. Though for many readers who don't click through the links, they miss out on the extra detail. Probably why RDI still suffers a wider-than-deserved discount.
    Aug 6 10:48 AM | 1 Like Like |Link to Comment
  • Important Events In Front Of Reading International Q2 Report [View article]
    The 'margin of safety' discount to RDI's growing NAV more than reflects the valid points your raise.
    Aug 6 09:14 AM | Likes Like |Link to Comment
  • Update: Amazon's Losses Widen [View article]
    When a company grows its revenues by $3.6 billion y/y you would think there would be SOME growth in Income. But with $AMZN Income DROPPED by more than $100 million.
    Jul 24 09:09 PM | 1 Like Like |Link to Comment
  • Update: Amazon Earnings [View article]
    Usually when a company grows its revenues by $3.6 billion y/y you would think there would be SOME growth in Income. But with $AMZN Income DROPPED by more than $100 million.
    Jul 24 09:08 PM | 2 Likes Like |Link to Comment
  • Cinemark Launches New Chairman’s Advisory Committee [View article]
    Sounds like a cheap and (possibly younger less experienced version) of a CNK's board of directors but selected and serving at the leisure of the Chairman.
    Jul 1 10:56 AM | Likes Like |Link to Comment
  • Lawndale Capital Mgmt To Conditionally Vote For Equal Energy Sale [View instapost]
    The likelihood of a credible higher alternative bid diminishes every day but we are prepared to reverse our vote it there remains time to do so.
    Jul 1 01:09 AM | Likes Like |Link to Comment
  • Is This Hidden Advantage To Generate Outsize Gains Fair? [View article]
    The "making" of any money by Icahn has not occurred just by the price being bid up following announcement of his large ownership and investors, believing higher returns, to follow make purchases at ever increasing prices. It only would be made if Icahn then were to turn around and be able to sell all those options or shares to incremental buyers. (BTW, at some higher price, its folly for these purchasers to expect or obtain higher returns and this is no fault of Icahn, just greed by the buyers.)

    Now if Sir Carl were to turn and quickly, instead of what he regularly does, which is spend great resources and clout to bring about change in his targets, then there would not be the cavalcade of money following him and buying shares after his next announcement. Right now Carl is perceived to be smart money and people follow smart money. If he dumped on shareholders or even were perceived to have lost his 'touch,' then there would be less of a bidding frenzy following announcement of an Icahn position.

    Right now you can purchase and accumulate no different than Icahn can. He has no advantage whatsoever over you or any other investor. He just has more fame, which is something investors and the media voluntarily choose to provide him - and believe me - will quickly move to take away from him, should he deserve it. Given his age and wealth and all he has achieved in life, frankly, I think all he has left is his legacy. So follow away.
    Jun 24 11:54 AM | 4 Likes Like |Link to Comment
  • Although Small, New Source Energy Partners LP Worth A Look [View article]
    I am not sure why you feel PETROFLOW was "favored" by the soon to be departing Canadian Based CEO, Klapko. He collects his sizable golden parachute regardless of who buys the company. Furthermore, he was given so many shares in the past, I don't feel his interests for obtaining the highest price are all that misaligned from shareholders. Though I do think he favors a transaction that pays him the severance vs one (leveraged recap) that does not. Similarly I think the Canadian directors of EQU are burnt out and want to be done with this company via a complete sale vs. some other, albeit higher value added alternative.

    There aren't really any more non-core assets for Equal to sell. Petroflow's acquisition multiple is so low and prospects for the industry are favorable that there is no reason for them to have to sell any assets as well. Cash flow will easily cover all debt requirements. That is why a leveraged recap could be structured to provide for at least $6/share of value in my opinion.
    Jun 18 12:59 PM | Likes Like |Link to Comment
  • Papa Murphy's: Franchisee Relief Plea Portends Imminent EBITDA Decline - Shares Could Fall 80+% [View article]
    I think the quick rise followed by sharp decline associated with Russell measurement day supports the argument that Russell measurement day had a great influence in both the institutional investor and the sell side enthusiasm
    Jun 11 03:01 PM | Likes Like |Link to Comment