Bruce Kaser (Seeking Alpha, AMC, MPO)

00:06:28

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This segment of financial exchange brought you in part by W host northern Italian steakhouse. Obvious is nine locations drop in East Coast with five locations the Boston area. Including Braintree the central plaza in opening its first West Coast location in Irvine California this summer. At dot PO she could enjoy seasonal cocktails handmade pastas perfectly cooked or beef steaks. As well as fresh seafood salads expertly prepared using the finest ingredients. Obviously it's all about the guest. Now it's all about stock doc Bruce pacer from seeking alpha joints is Bruce thanks for joining us. Got a letter Bruce AMC entertainment is on your list now I thought people worked go to movies anymore my wrong. There and they declining slowly declining amount of people going to movies but what we've found is that the revenues they not the box office that has an actor quite strong at last year would near record number for the industry. That part of that I understand is that this move to more of an upscale experience tonight it almost like I coached there waiting for you. To watch the movie on the big screen. Is there paying off is it becoming a better experience that you attracting people. It absolutely has that the theater experience today is much better that was the luxury liners are. I very comfortable in and actually the food and and beverages in theaters are. I really much much better than it worth it been a very very good experience or the the heat to companies as well attempt to bring in people and it's like profitable. Now with AMC entertainment I noticed the stock is off about half from its year high. I can't imagine it's vastly overpriced because just. You know my knee jerk reaction was well and there aren't as many people go to theater anymore. What do you think about the stock is of value from where it is right now. It we think it's a very good value it is pretty inexpensive they trade at about seven and at times that ash flow and also pays a four point 8% dividend. We think the company is is really a good value here what are the concerns side you mentioned these people maybe not going to Peters has much in. There is some concern about streaming services like. Netflix or Amazon prime. But the movie theaters we we think you're doing quite well from the problem last year was really just felt a lack luster weighed at a movie. Who went to go to Bourne movies. But this year it back to is played a very good movie the blockbuster up black panther has crossed over one point three billion dollars and not annual revenues or in the industry revenues. And even a movie. 409 revenues for the industry and really just a few weeks. That we think the company's future is much better than market giving it credit or are we gonna like it here. You think that's four point 8% dividend to sustainable. It. Okay good that's good news coverage a stock you want talk about today marathon petroleum. Now we like energy and energy is doing pretty well today and it's been doing pretty well lately. Is this a good way to play energy. Yet you know part part pretty mistake it site mid state petroleum. And misstate just small cap company ya about 350 in market value we think it's a very good way to captured two things one is. Oil and gas companies are very inexpensive now mid State Street where about three at halftime cash flow. And the other thing is interesting about Mitt state is that it recently emerged from from bankruptcy. And companies that have not come through bankruptcy often had a pain and investors think those are rob is companies have been not bad and are still troubled. But coming out of bankruptcy can be very beneficial and admit state case. It erased about two billion dollar in debt and now the company has been very strong balance sheet with passion that apple that it each other so strong about treat. He also have a new shareholder friendly management team and board of directors. That we like doing a great job of rebuilding the company and setting about what India very good strategy going forward. Yellow price earnings ratio of ten point seven that's pretty low is now. Yeah oil and gas companies can't be measured a little bit more on cash flow but ten times or eight EMP company is is pretty good pretty good low number. See like marathon petroleum and and you'll also like EMC. I made it petroleum honest and support him at PO and AMP energy and yet remote we like but there are quite a risk pasted from my seeking help with thank you very much great thank you. Some interest in picks their chuck absolutely and and I think you know what what's interesting is. You know eat you talked about oats. I wonder a little bit about a company like that troll and company that states unity. It just you worry in this market oil's been so unpredictable the last couple years and I just I. I have questions I guess the only thing I'd say in defense is the risk of overpaying for petroleum company. Or movie theater the risk of over the regular probably worse discounted if you know and in terms of your downside risk there just because the American consumer habits change faster on that account than they do. You know in terms of obviously on on the energy side of things at the big couch. And game plans kind of understated at these big. Beautiful coaches you can line and then you know don't have that home I think they act as noted in its like okay so our big play at the movie theaters is to make it feel more like you're at home. So to stay home or just stay up brand like. I wonder you know why I get the attraction obviously for the studios to that's how they make their money is that they make their money when a family of four goes and spends forty dollars on a move. Right but it's. They also pay some of that to the theater they'll you know. I just wonder if at some point we get to you know it used to be that direct to video was a bad thing. Why it's so bad anymore you know as. I think in the big screens at home get bigger and bigger in the surround sounds get better and better it's him he's cute and cheaper whatever paper exactly it's not a hot trends and instead of going on spending forty dollars he could stay home and spend twenty. All of a sudden it's a while A this is affordable B I don't have to go anywhere. And and now what a great experience and now with Netflix to caution nothing for the content yeah it's I just I I look at it and say. Look if I am you know Sony Pictures are on Warner Bros. bomb BO coming out the next marvel movie yet great that I can have it in theaters. But at some point. That the that we have in our home becomes better.
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