On the surface, circumstances don’t appear particularly compelling for Cinemark (CNK). Fundamentally, as a cineplex operator, CNK stock incurs the risk of losing relevance to streaming providers such as Netflix (NFLX). Further, disappointing earnings and seemingly bearish activity in the derivatives market point to further erosion. Nevertheless, intrepid speculators may want to keep close tabs on the entertainment enterprise.
But to start the discussion, those on the bearish side of the camp have plenty of ammunition to fire. First and foremost, the fundamentals for CNK don’t appear encouraging at all. For example, Cinemark came out with a quarterly loss of 82 cents in its latest fourth-quarter earnings report. However, Wall Street analysts anticipated that the loss would on average come out to 34 cents.
