This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

May 21, 2010 - Cinemark Holdings Inc. (CNK-NYSE) and subsidiaries engage in the motion picture exhibition business. As of December 31, 2009, the company operated 424 theatres and 4,896 screens in the United States, Canada, and Latin America. The company also manages theatres in the United States, Brazil, and Colombia. Cinemark Holdings is headquartered in Plano, Texas.

Earnings are on the same path, after a loss in 2008 of 45 cents. In 2009, they were 87 cents. This year, 18 analysts see $1.18 (with a range of 81 cents to $1.50), then $1.30 in 2011. Second quarter results will be out in July and are expected to show 32 cents a share, almost double the 17 cents of last year's second quarter. For the third quarter, look for 26 cents, up from 19 cents in last year's third.

More people are going to the movies. CNK saw admission and concession revenues up 14.8% and 12.7% respectively in 2009. Its ticket sales were well ahead of the industry average of 5% with a 12% increase. Part of that came from more screens (over 100 to 4896). There are plans for another 137 screens this year and in the future.

The company is embracing digital projectors, a necessity for 3D films which many feel is the next wave for movies. It has a joint venture with AMC Entertainment and Regal Entertainment Group along with major studios to install digital projectors. It currently has about 400 3D screens with plans to reach 1200 by the end of the year.

That should mean good things for revenues and profits. 3D tickets are usually 50% higher than normal fare. In 2009, there were 14 films in 3D which rang up $1.6 billion in ticket sales. Of course, the big one was Avatar. This year, expect about 20 movies in 3D with many more being filmed now. The 3D capability gives CNK the opportunity to broadcast entertainment and sports events as well as films.

One reason why it might lose appeal: new movies may not be very good (I have no inside track, just using it as a reason for why revenues may fall). That doesn't seem too likely, but this is a company that relies on others for its product so it doesn't control its own destiny. As long as there are good movies, and more 3D films, this stock should continue its upward path.

More numbers: Price to sales ratio is .93. Price to book is 2.06. Book value is $8.32. Operating margin for the last 12 months was 13.73% while Profit margin was 5.56%. Return on equity was 13.23% and Return on assets was 5.56%. Revenues for the last 12 months were $2.06 billion. There's $433.23 million in cash for $3.86 per share. Total debt is $1.07 billion. Current ratio is 1.97. There are 112.26 million shares outstanding with a Float of 57.75 million. Insiders own 49.12% of the stock. Institutions have 33.4%.

There's a dividend of 72 cents a share which yields 4.10%. It takes 71% of earnings to pay it. It was last distributed on March 18 with an ex-dividend date of March 3. Most likely the next 18 cents will be paid on June 18 with an ex- date of June 3 but that hasn't been announced.

Unlike most stocks featured in this Aggressive column, CNK has a dividend that will help your returns. The stock is already loved by a lot of investors. They've bid up the price to almost a new high. That seems justified given the new 3D projectors being installed and new screens being added. Still, what makes movie goers go to the movies is the movies themselves. If you own this stock, remember that.

- Company Web site: www.cinemark.com

- Ted Allrich