Today we’re talking about how to trade America’s love affair with the silver screen – Hollywood’s summer box office.
Regal Entertainment (RGC) Chief Executive Michael Campbell joins the guys for this conversation. Here's a recap of the interview's main points.
What kind of impact are the recent blockbusters having on your business?
“It’s been a great summer so far, after coming off a great 2006,” replies Campbell. Last year we were up 5-6% and we’re heading in that direction again this year.”
Is the digital revolution hurting business?
“I believe there will always be a place for out-of-home entertainment. Certainly movie theaters fall into that category,” replies Campbell. “And we have large numbers of customers turning out this summer.”
How is the money divided between theaters and movie studios?
“Typically it’s a percentage split and varies film by film,” explains Campbell. “We will pay a bit more for blockbusters and a bit less for films that are not quite as good.”
In the past the longer a movie stayed in theaters the better theater owners did. Is that still the case?
“No we’ve modified that practice over the past few years,” he says. “We typically split now at a fixed percentage for the entire run of a film.”
Dylan Ratigan asks the guys what they think of this stock?
Jeff Macke tells investors to be long RGC and he still likes Disney (DIS).
Trader disclosure: On June 21 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (EMC), Bolling Owns (DIS), (ICE), (NMX), (T), Sugar; Bolling Is Short (FXI) And Owns (FXI) Puts; GE Is The Parent Company Of CNBC; CNBC Is A Service Of NBC Universal And Dow Jones
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