Carmike Cinemas: Issues facing the Cinema Industry Don't Change the Investment Thesis

By Adam Muller:The recent market downturn has created opportunities. One oversold opportunity is Carmike Cinemas (CKEC). Carmike is a small cap company and, as a result, the stock can be volatile but in this case it is this volatility that has taken Carmike to a level well below its true value creating a unique investment opportunity.

Carmike Cinemas (CKEC) Q1 2013 Earnings Call May 06, 2013 5:00 pm ET Executives Robert Rinderman S. David Passman - Chief Executive Officer, President, Director and Chairman of Executive Committee Richard B. Hare - Chief Financial Officer, Principal Accounting Officer, Senior Vice President of Finance and Treasurer Analysts James M. Marsh - Piper Jaffray Companies, Research Division

Carmike Cinemas (CKEC) Q4 2012 Earnings Call March 14, 2013 5:00 pm ET Executives Robert Rinderman S. David Passman - Chief Executive Officer, President, Director, Chairman of Executive Committee and Member of Corporate Governance Committee Richard B. Hare - Chief Financial Officer, Principal Accounting Officer, Senior Vice President of Finance and Treasurer Analysts

By Adam Muller:Carmike Cinemas (CKEC) describes itself in its 10-K filing as follows:

Adam Muller submits: First Quarter 2011 was Weak as Expected

Wall Street Cheat Sheet submits: by David GibbsMovie theater operator Carmike Cinemas, Inc. (CKEC) beat earnings estimates by a significant margin Monday after bell, reporting its most profitable quarter in over two years.

By Gordon Hodge:Two positive developments occurred over the weekend for Carmike Cinemas, Inc. (CKEC).

Adam Muller submits:On April 29, 2011 I posted an article regarding Macy’s (M). I argued that Macy’s, which was trading at $24 per share at the time, would benefit from excellent strategic execution and an improved balance sheet. Macy’s closed Tuesday at $28.30, up 18% since April 29th.