Core Investment Thesis - Cinemark Holdings, Inc. is positioned for significant upside due to improving fundamentals and a stronger film slate expected from 4Q 2025 through 2026, with a consensus implying a 40% upside over the next year [4] - The stock is currently trading at $27.38, with a potential share price in the mid-$40s within a year, suggesting a return potential of approximately 75% [1][5] Company Overview - Cinemark operates around 300 theaters in the U.S. and 200 in Latin America, holding a 15% market share in the U.S. and benefiting from exposure to higher-growth Latin American markets [2] - Concessions account for 40% of total revenue, highlighting the importance of in-theater spending [2] Financial Performance - The company experienced a significant decline in attendance during the pandemic, with U.S. attendance dropping from 176 million in 2019 to 35 million in 2020, recovering to 127 million in 2023 [2] - Cinemark has been focused on repairing its balance sheet post-pandemic, cutting its dividend and now reinstating it as leverage trends toward 3x by 2026 [3] Market Dynamics - The weak film slate has negatively impacted recent quarters, despite strong results in 2Q 2025 [3] - Key catalysts for growth include a stronger film slate in 4Q 2025, resolution of a convertible note maturing on August 15, 2025, and potential competitor asset sales or IPOs [5] Strategic Positioning - The company is well-positioned to pursue accretive acquisitions due to its improved balance sheet, especially in light of strategic activities in the sector, such as Cineworld exploring a sale [5] - The investment thesis for Cinemark shares similarities with The Marcus Corporation, emphasizing stronger fundamentals and near-term catalysts [6]

Core Thesis - AMC Entertainment Holdings, Inc. is positioned to benefit from the anticipated Taylor Swift theatrical event, which could exceed the $93 million domestic debut of her Eras Tour film [2][3][5] Company Positioning - AMC operates approximately 900 theaters and 10,000 screens, providing a range of movie experiences including AMC, AMC Classic, and AMC Dine-In [2] - The company has made significant investments in post-pandemic recovery, including upgraded seating, expanded food and beverage options, and enhanced digital experiences [3] Event Impact - The rumored Taylor Swift event, potentially occurring from October 3-5, is expected to drive record-breaking attendance and increased per-viewer revenue due to its exclusivity and fan engagement [3][4] - Historical performance from the Eras Tour film indicates strong box office results and additional revenue from concessions and merchandise, with AMC likely capturing a significant portion of this upside [3] Strategic Alignment - The event aligns with AMC's strategy of focusing on premium experiences and event programming, which could enhance margins and revenue [4] - Despite uncertainties such as the event's unconfirmed status and competition from streaming services, there is a notable underappreciated opportunity for AMC in Q3 [4] Investment Potential - If the event occurs, it could act as a catalyst for AMC's stock, presenting a compelling investment case with a favorable upside-to-risk profile for event-driven theatrical releases [5] - AMC's operational expertise and capacity to monetize high-demand events position it as a primary beneficiary of this potential cultural phenomenon [5]