Did I Buy A Falling Knife?
Hard To Time
Don’t you hate that moment when you thought you made a great buy, and then the next day it tanks even lower? At the beginning of August before the 2nd quarter release the stock was trading at just under $50 per share. Even know the company increased its revenue 7.7% the stock started tanking. After the stock pulled back another 6% on Tuesday, I made the buy.
Tuesday night when I made the purchase the stock was down 24.32% since the beginning of the month. We bought 80 shares at $37.84 each in our Tax free savings account. At that price the yield is 4.44% which I have never seen cineplex offer. I felt / feel the situation is overblown, clearly movies have sucked this summer. Other than Wonder Women can you name another good one? I went and saw despicable me 3 with my son but really hasn’t been much. Was there even a Jennifer Anniston movie? Some nights we try to watch something on our android box but there is nothing worth watching. (well new movies) Also its the summer, I rather do stuff outside.
Cineplex knows it relies too heavily on hollywood producing top notch movies and are trying new ideas to branch away from that. Did you know they will be showing the Mayweather – Macgregor Match? Seems pretty cool but personally Id like some beer while watching that fight. If your a gamer they hold tourneys and stuff like that. I got to say that would be pretty neat playing mario kart, super smash bros or something like that on a massive screen.
Cineplex has also started Rec Room’s. Massive Entertainment places (Toronto’s is 40,000 square feet) with a couple places to eat, drink and a huge arcade. Sounds like dave and busters but supercharged. One just opened in the Edmonton Mall, I think these will definitely produce nice profits. Sounds like a gay ol time to me. I know the radio always mentions how its a great spot for dating like their friends went there etc.
The stock has dropped another 6.5% since I bought it Tuesday night. Clearly I didn’t buy the bottom. As I’ve stated before I’m not a professional investor. While it sucks that I timed it wrong, Hollywood is going to bust out again. The next star wars comes out this December and hey who knows maybe they will continue the series and make a Joe Dirt 3. Then you know the stock will soar! Did I get ya Joe? No I’m Cool….. Classic!
While I have a android box, I still like a date night at the movies. If I decide to go to a movie its basically guaranteed I will be going to a cineplex. Maybe I’ll even check out the Rec Room and get me enough tickets for a bouncy ball or something. While I wait for the stock to return on its upward trajectory I’ll sit back and collect its monthly dividend.