Over the fourth quarter, Cinemark Holdings (CNK, Financial) (-13.3%), a suburban focused movie theatre business with operations in the US and South America, was the weakest performer. The company’s third quarter results were weak as a result of higher big box film concentration and consequently lower film gross margins. However, these kinds of quarterly fluctuations are common in this business. On the positive side, domestic concession per ticket continues to improve. We feel that today’s discounted share price more than compensates us for this risk.
From Leith Wheeler Funds' fourth-quarter 2019 quarterly review.
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