Investment Thesis
Cineplex (CPXGF) [TSX:CGX] is one of the largest entertainment companies in Canada. The company is facing the challenge of growing its box office revenue due to declining attendance. However, the company has a diversification initiative that aims to grow location-based entertainment revenue to re-accelerate its growth rate. The company also pays an attractive dividend with a healthy payout ratio. Its share price is currently very attractive. Hence, we believe Cineplex is a good investment choice for investors with a long-term investment horizon. However, its share price may continue to exhibit weakness