Ariana Research
Long/short equity, Deep Value, special situations

Digital Cinema Destinations: Investing In A Middle-Market Roll-Up Without The Private Equity Fees

(Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

Digital Cinema Destinations (NASDAQ:DCIN) ("Digiplex", "DCIN", or the "Company") is a fantastic opportunity to invest in a simple, cash-flowing business in a stable industry run by a successful management team who have already successfully built two public businesses. Digiplex is rolling up small "mom-and-pop" theaters across the country at ~4.5x theater level cash flow inclusive of digital upgrade costs using flexible purchase financing.

The following are the reasons Digiplex is a timely investment now:

  • Multiple Arbitrage: Digiplex is buying theaters at ~5x EBITDA when comps
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