| By Lina Lee, Managing Editor, Alpha Investor Dear American Investor, What would you think if you heard a company was closing every single one of its 500-plus locations nationwide?
You don’t have to be an expert to know that it’s probably headed for failure.
Well, that’s exactly what Regal Cinemas did in October. Owned by Cineworld Group, Regal is the second-largest cinema chain in the U.S.
It made the decision to shut down operations after several highly anticipated films postponed their releases — including the next James Bond film, No Time to Die.
But none of this should come as a surprise.
Not even James Bond can save the movie industry from the pandemic at this point.
Cineworld isn't traded on the New York Stock Exchange, but you can see how movie theaters have fallen in another titan: AMC Entertainment (NYSE: AMC). Take a look at its chart:  (Click here to view larger image.) And it’s something Wall Street veteran and Alpha Investor Editor Charles Mizrahi predicted from the start of the new COVID-19 normal…
And a former Wall Street insider is stepping forward with his No. 1 stock pick in a shocking new presentation. Details here.
A New Business Landscape You see, when Charles’ home city of New York started issuing stay-at-home orders, he saw the lights go out on Broadway … Times Square emptied of tourists … and Grand Central Station became a ghost town.
He knew the business landscape had now changed drastically … possibly for a long while.
So, he had to find out which businesses would thrive despite the pandemic. That would be the only way to still make money investing in the markets.
And with his 37 years of Wall Street experience, he figured it out by solving the problem in reverse. He thought about which businesses would definitely fail in the pandemic.
Over the phone, he told me about the three types of businesses he believed would tank: - Ones needing foot traffic.
- Ones that didn’t provide essential products to keep their recurring customers.
- Ones that needed daily transactions to survive.
If we’d made a list of industries that fit these, movie theaters would have been at the top of that list. They need their customers’ foot traffic and purchases to stay alive. And movies weren’t a critical part of many people’s days to begin with.
With stay-at-home orders preventing people from leaving their homes or traveling, theaters saw their customer base and transactions dry up.
They were facing major headwinds from the very start. And Charles is still betting against them in the long run, too.
Instead, he’s turning to a growing $44 billion industry that’ll thrive as movie theaters become a thing of the past…
The Rise of Streaming The fall of theaters has been a long time coming. And it started with the decline of cable. Nobody flips through the channels anymore.
We can watch what we want, when we want, wherever we want — even if that’s on our phones while working out on a Thursday morning.
And the pandemic has fueled that trend more than ever. Stuck at home all day, we’re bound to binge-watch a show or two.
Plus, most people right now are still reluctant to go back out even after some restrictions have been lifted.
Why go out and risk your health at a movie theater when you can stream your favorite films and shows right from the comfort of your own home?
That’s why we see the streaming industry taking over in the years ahead. And we’re betting on a small number of companies to lead the way. In particular, we see streaming companies using the subscription model becoming the next wave of market dominators.
And it's not just companies like Netflix. There are companies dominating the streaming market for more than just movies. They're gathering subscribers in record numbers. In fact, one of our favorites beat its four-year subscriber target in just 10 months.
And as movie theaters continue to struggle, movie streamers will continue to prosper.
Those with subscription models will do even better.
We’ll continue to monitor this trend as it unfolds ... and let you know our favorite companies to take advantage of it.
But if you want to get access to these names before our research ever appears in American Investor Today, you’ll need a subscription to Alpha Investor.
This will be one of the next mega-trends in the market. You don't want to miss it. 
Lina Lee
Managing Editor, Alpha Investor
    Privacy Policy
The American Investor Today, P.O. Box 8378, Delray Beach, FL 33482.
To ensure that you receive future issues of American Investor Today, please add info@mb.banyanhill.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance.
The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: http://banyanhill.com/contact-us
Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Banyan Hill Publishing expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, Banyan Hill Publishing, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail.
(c) 2021 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096)
Remove your email from this list: Click here to Unsubscribe | 
No comments:
Post a Comment