I will buy Cinemark Holding Inc (CNK) stock because it has great potential. Although the stock is currently selling at a moderate 18.47, it has dramatically increased over the year and shows an increasing pattern. The plan is to buy this stock at its low price and sell it for a much higher price. The reason I expect the price to go up is because of the new popular type of movies being released, 3-D movies. You can wait for those movies to come out on DVD to watch at home but you will not get the 3-D effect; it is a trap that takes advatage of the movie demand. According to MSN.com " The success of 3-D mega hits like Avatar and Alice in Wonderland have basically given theaters the green light to charge a few dollars more per ticket" and "effective last weekend, many theater operators will charge up to 26% more per ticket to see the latest film releases." Though, to put Cinemark out of competition with Regal Entertainment Group, Cinemark has opened three new extreme cinema digital auditoriums that offer a complete entertainment environment (MSN.com). My hope is that they will continue to open up new theaters like this one. Also I'm evoked to buy this stock because people never stop watching movies. Even during the worst part of the recession people were still flocking to the movie theater because it is still a cheaper form of entertainment than others such as a Broadway show. Considering the stock a moderate risk, I'm greatly investing in it as I expect it to dramatically increase over the years.
Rebecca Kern
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