You will give up your fancy apartment, sell the copper pipes and granite counters for scrap; the repo man will take your Hummer; and your wardrobe will be from Marshall’s. But you will still be spending money at the multiplex.
That, in a nutshell, is what Piper Jaffray analysts wrote yesterday. They were talking up “escapism” as a rationale for stocking up on movie-house shares such as Regal Entertainment, Cinemark Holdings, and Carmike Cinamas.
And as the economy gets worse, Piper Jaffray says, it gets better for theatres because going to the movies is considerable cheaper than live theatre or any type of sporting event.
Their evidence (from behind Barron’s paywall):
•The highest grossing Easter Weekend ever, carried by broad audiences at three vastly different films: Hannah Montana: the Movie; Fast and Furious; and Monsters v. Aliens.
•Historical patterns of the past six recessions, the 15% growth seen in box office take will likely hold up.
•People actually went to see Paul Blart: Mall Cop.
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