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Cinemark Holdings: The Advantages and Disadvantages

Posted on July 03, 2009

I had purchased Cinemark (CNK) at $8.90 at the end of April when Swine flu broke out in Mexico. 20% of CNK's EBITDA comes from LatAm (mainly Brazil and Mexico), so the fears were justified at that time. 1H09 has been spectacular for US theater exhibitors with box office gross up approx 13% yoy. In 2H09 though, the company will face difficult comps from The Dark Knight, which was released in July 2008.And come 1H10, it will face difficult comps from a great 1H09. So the question is what should one do? Here is a list of the positives and negatives:Advantages:...

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