A recent addition to the RedChip Nation, Digital Cinema Destinations (NASDAQ: DCIN) ("Digiplex"), broke out to a new 52-week high earlier this month. With an established trend of significant revenue growth over the past several quarters, we anticipate much higher prices ahead for DCIN.
In the quarter ended March 31, the Company reported a sizable 27.5% jump in sales from the quarter at year-end 2012 and a staggering 800% increase year-over-year.
This growth hasn't gone unnoticed. B. Riley , Maxim Group, and most recently Barrington Research have issued buy ratings for DCIN, with price targets as high as $10 per share.
So what does DCIN do?
As Travis Reed, CEO of national cinema advertising leader Screenvision, recently said, "Digiplex has positioned itself on the cutting-edge of theatrical exhibition innovation."
DCIN is executing a plan to transform movie theaters into interactive entertainment centers. While traditional theaters have seen declines in overall ticket sales, DCIN is filling the void with unique offerings that include live opera, ballet, Broadway shows, sports events, and concerts, in addition to ongoing major motion picture features.
DCIN currently operates 19 cinemas and 184 digital screens across six states (AZ, CA, CT, OH, PA, and NJ). Longer-term, the Company is seeking to expand its network to 100 cinemas and 1,000 screens.
While working to expand its own network of cinemas with its unique interactive entertainment concept, DCIN has struck a major deal with Screenvision.
"Joining forces with cinema advertising leader Screenvision is a clear win-win for both organizations, and importantly, this will result in a much larger release platform for unique, specialty content that deserves a much wider audience," commented Bud Mayo, Chairman and CEO of DCIN.
The relationship is hitting the ground running with the recent debut of the hard-hitting documentary "The United States of Football." The film debuted at DCIN theaters and select locations in major cities on August 23. A week later, the film will get expanded release in theaters that are members of Screenvision's 14,000+ screen footprint across the U.S.
Be sure to watch our recent interview with Bud Mayo to learn more about this exciting company and its plans for changing our theatergoing experience.
Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.