Regal Entertainment Group (RGC) has seens its stock price drop 40% from 52 week highs due to fears about streaming first-run movies.
But there is a lot of opposition to such a move from within the industry including many well know directors (such as James Cameron and Christopher Nolan) due to concerns about how such a move would impact the industry. Primarily these are;
- The importance of an exclusive theatrical launch
- The impact on theatre owners - theatres are still a major driver of income with Star Wars generating $2bn of revenues in theatres alone.
- How many would be prepared to pay the $50 charge being talked about
- Piracy – despite all the technology to prevent it
Much more likely seems a compromise release date after the cinema but before current rental. Perhaps after 4 to 6 weeks. Such a result could allow the studios to boost their revenues without causing an earthquake within the industry.
Insiders at Regal seem to believe in such a scenario with the CFO and 2 board members recently making purchases between $100,000 and $369,000 at current prices.
Following recent SP falls and given an attractive TTM PE of 14.4 other investors may choose to follow.
This is not a recommendation to buy or sell. Stocks are not suitable for all investors. Please do your own research.
Submitted September 09, 2017 at 10:20AM by InterestingNews1 http://ift.tt/2wQC7mf
