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Nolte: Because Their Product Stinks, Movie Theater Stocks Crash
9-2-17
Can five titles — It, Kingsman: The Golden Circle, Star Wars: The Last Jedi, Justice League and Thor: Ragnarok — save Hollywood? Because it ain’t just the summer stinking up the 2017 box office. After a dismal second quarter, the third-quarter box office is expected to collapse -21% when compared to last year. That is six months of fail, folks — and now theater chain stocks are crashing, even as the stock market itself enjoys a bull market.
With 11,873 screens in 1,009 theaters, AMC Entertainment is the single largest theater operator in America and — are you ready for this? — its stock price has collapsed a whopping -45% since Memorial Day. Two other monster chains, Regal and Cinemark, have seen their stocks drop by -28% and -18%, respectively. Even Imax, one of the pillars (along with 3D) of the premium pricing schemes that have kept the box office looking relatively good these past few years, saw a -31% drop in the price of its shares.
Is Hollywood in real trouble?
Is this a bigger problem than just one lousy year?
http://www.breitbart.com/big-hollywood/2017/09/01/deadly-summer-box-office-crashes-movie-theater-stocks/