Carmike Cinemas, Inc.NASDAQ
Carmike Cinemas: Re-Rating In The Cards
Johannes Salim, CFA • 14 Comments
Johannes Salim, CFA • 14 Comments
Carmike Cinemas Is Extremely Oversold
Alpha Gen Capital
Alpha Gen Capital
Tue, Nov. 15, 3:04 PM
- Shareholders at Carmike Cinemas (CKEC +0.1%) approved the company's merger with AMC Entertainment (AMC +0.3%) during a special meeting held today.
- The company says 86% of the shares voted at the meeting were in favor of the theater chain combination.
- The transaction is expected to be completed by the end of 2016 or in early 2017 after regulatory approvals are lined up.
- Under the terms of the AMC merger agreement, Carmike stockholders will receive cash in the amount of $33.06 per share or 1.0819 shares of AMC class A common stock for each share of Carmike common stock owned by them.
- Source: Press Release
Mon, Nov. 14, 3:32 PM
- Shareholders at Carmike Cinemas (CKEC) are due to vote tomorrow on the proposed takeover by AMC Entertainment (AMC -0.1%). The deal is expected to be approved after some late buying action from firms looking for a short-term gain tipped the scales.
- AMC is also pursuing a deal in Europe that is precipitating the need to raise funds through a debt offering.
- If AMC lands both Carmike and Odean & UCI Cinemas Group, it would increase the company's theater count to about 900 locations to make it the largest movie chain in the world.
Mon, Nov. 7, 4:21 PM
Sun, Nov. 6, 5:35 PM
- ACAD, ACXM, ADUS, AKAO, ALB, ALGN, AMC, ANDE, APEI, APLE, ARNA, BIOS, CHGG, CKEC, CRAY, CST, CTLT, CUTR, CZR, DEPO, DMD, DTLK, DTSI, EBS, EDIT, ENV, EPM, FANG, FARM, FICO, FN, FNV, FOGO, FRGI, FSM, FTD, HALO, HCKT, HTZ, IAG, IFF, JKHY, JPEP, KND, LSCC, LYV, MAR, MATX, MCHP, MODN, MXL, NCMI, NEWR, NH, NVGS, NVRO, NWSA, OAS, OMF, OPK, ORA, OUT, PACD, PCLN, PINC, PKI, PRAA, PTLA, RARE, REN, RMTI, RRR, RST, RTEC, RWT, SCSC, SGY, SITE, SNCR, SNHY, TCX, TDW, TREX, TSLX, ZGNX
Mon, Oct. 10, 7:52 AM
- The U.S. box office is up 3.8% Y/Y to $8.7781B through October 9, according to the latest tabulation from Box Office Mojo.
- The sector received a boost in the third quarter from the strong runs of The Secret Life of Pets and Suicide Squad.
- A higher average ticket price this year helped to offset some traffic slips.
- Movie theaters face a tough comparison in Q4 after Star Wars: The Force Awakens brought in $652M during the period last year.
- Related stocks: CKEC, AMC, CNK, IMAX, RDI, MCS, NCMI.
Mon, Aug. 29, 11:42 AM
- The U.S. box office is up 5.5% to $7.9328B after the first eight months of the year, according to tallying from Box Office Mojo.
- Higher ticket prices account for some of the gain.
- Despite a solid summer in terms of movie theater attendance, studios may have left something on the table as they suffered from "sequelitis virus," according to an insider look from The Hollywood Reporter.
- SA contributor L&F Capital Management pointed out last week that Disney's box office dominance (Finding Dory, Captain America: Civil War, The Jungle Book) this year bodes well for Netflix (NFLX +0.7%) which has exclusive streaming rights for the movies geared at children.
- Related stocks: CKEC, AMC, CNK, RLD, IMAX, RDI, MCS, NCMI.
Thu, Aug. 4, 1:05 PM
- Driehaus Capital Management says it will vote in favor of accepting AMC Entertainment's (AMC +2.7%) higher offer for Carmike Cinemas (NASDAQ:CKEC).
- "We are confident that Carmike's current standalone value is substantially in excess of the $33.06 per share offer. However, we are not as confident that it would be one year from today given management's focus on selling the company rather than growing it," reads a statement from the investment advisory firm.
- Driehaus beneficially holds over 2.430M shares of Carmike.
- Shares of CKEC are up 3.57% to $31.29.
Mon, Aug. 1, 4:15 PM
- Carmike Cinemas (NASDAQ:CKEC) reports total attendance fell 11.6% Y/Y in Q2 to 15.875M.
- Average admission per patron was up 1% to $7.69.
- Average concession/other sales per patron rose 9.5% to $5.20.
- Carmike’s Q2 film exhibition costs as a percentage of admissions revenues fell 120 bps to 57.5%.
- Previously: Carmike Cinemas misses by $0.04, misses on revenue (Aug. 1)
Mon, Aug. 1, 4:12 PM
Sun, Jul. 31, 5:35 PM
- ADUS, AEGN, AEIS, AMKR, APU, ARE, ATW, BDE, BLKB, CEMP, CGNX, CHGG, CKEC, CONE, CUTR, DAC, DNB, ENH, ENSG, EXAC, FTR, GGP, GKOS, GPRE, HTA, IDTI, ININ, IPHS, KMT, LNT, MCEP, MTGE, NGHC, NLS, OFIX, OGS, OLN, PLOW, PPS, PQ, QUAD, RAIL, RXN, RYAM, SBRA, SYKE, TEX, THC, TNET, TREX, TSE, TTOO, TXRH, UGI, VECO, VNO, WMB, WSTC, XOXO
Mon, Jul. 25, 7:00 AM
- AMC Entertainment (NYSE:AMC) has agreed to buy Carmike Cinemas (NASDAQ:CKEC) in a cash and stock deal valued at $1.2B.
- Under terms of the transaction, for each outstanding share of CKEC common stock, Carmike’s stakeholders will have the option to receive either $33.06 in cash or 1.0819 shares of AMC's Class A common stock.
- The transaction is expected to produce annual cost synergies of approximately $35M.
Fri, Jul. 15, 2:45 AM
- AMC Entertainment (NYSE:AMC) is exploring a potential sweetened bid for Carmike Cinemas (NASDAQ:CKEC) that would top its previous $1.1B offer, Reuters reports.
- The smaller movie theater chain said on Thursday it will continue to have ongoing discussions with AMC after it delayed a July 15 shareholder vote on its previous $30 per share offer.
- It was the second time Carmike postponed the vote, which is now set for July 25.
Thu, Jul. 14, 6:50 PM
- After it postponed a special shareholder vote to July 15 at the end of June, Carmike Cinemas (NASDAQ:CKEC) is again postponing its special meeting in light of ongoing talks with AMC (NYSE:AMC) about a merger deal.
- The meeting had first been planned for June 30, but amid some contentious talk between the sides it was moved to tomorrow. That meeting is now set for July 25 at 9 a.m. Atlanta time.
- After Carmike postponed the last meeting, with observers saying some Carmike shareholders wanted too rich a price, AMC chief Adam Aron said the $1.1B deal was in jeopardy because of the "loose price talk."
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha
Wed, Jul. 13, 2:02 PM
- Wedbush Securities analyst Michael Pachter updates investors on its view on theater stocks with the back half of the year starting to ramp up.
- IMAX (NYSE:IMAX): Q2 results are forecast to arrive in-line with consensus estimates. A number of growth drivers -- including virtual reality, global growth, higher film volume, and laser projectors -- keep Wedbush locked in with an Outperform rating and $40 price target.
- AMC Entertainment (NYSE:AMC): Shares are rated at Outperform with a $33 price target. Though AMC is expected to lose market share in Q2, concessions and film rental margins are seen improving.
- Carmike Cinemas (NASDAQ:CKEC): Held at Neutral with a $30 price target. The AMC acquisition is seen closing by the end of the year.
- Cinemark Holdings (NYSE:CNK): Also rated at Neutral, the view on Cinemark is that a strong domestic performance will be muted by F/X pressure abroad.
- Regal Entertainment Group (NYSE:RGC): The investment firm expects in-line performance from the chain at the box office.
- Previously: U.S. box office up 1.3% YTD after 4th of July weekend (July 8)
Tue, Jul. 12, 7:38 AM
- AMC Entertainment (NYSE:AMC) says it remain committed to a potential acquisition of Carmike Cinemas (NASDAQ:CKEC).
- AMC CEO Adam Aron adds insight to the company's mindset below.
- “AMC remains committed to moving forward with our plan to acquire Carmike Cinemas.
- “Some Carmike shareholders have an unrealistic view as to Carmike’s value to AMC, and their resulting price expectations are simply beyond what AMC believes is prudent to pay."
- “We intend to continue to work this week with Carmike to see if the AMC/Carmike transaction can be saved, but we again note that the economics of a transaction get marginal very quickly for AMC above the $30 deal price. Therefore, the likelihood of an AMC/Carmike transaction continues to be at considerable risk."
- Earlier today, AMC announced the acquisition of with Odeon & UCI.
- Previously: AMC Entertainment to acquire Odeon & UCI Cinemas Group (July 12)
- Source: Press Release