- My long-term bearish view on theaters was validated last year as top cinema chains have failed to recover with the rest of the market.
- AMC Entertainment has suffered the most due to its lack of liquidity, but even the more solvent Cinemark is in a difficult position.
- Surveys clearly show that a very large portion of movie-goers plans to remain as movie-streamers even after the pandemic.
- Cinemark may see a recovery in sales, but without a full recovery, its shares appear to be overvalued today.
- Latin America may fare much better than the U.S., but Cinemark's profitability is still entirely dependent on its U.S. business.
For further details see:
Cinemark: Theaters Are Unlikely To Ever Fully-Recover From COVID