JBL: Movie Star

National box office revenues increased from between 7.5% and 8% in the second quarter year over year. Regal Entertainment Group's total admission revenue, which is two-thirds of total revenue, was up 7.8% year over year.

While RGC benefits the most from these attractions, they are still held hostage by what Hollywood puts on their screens and technological advances. However, I believe these issues are priced into the stock.

Regal Entertainment Group has price-to-earnings multiple of 26 based on 2006 consensus earning estimates of 73 cents per share. RGC also has growth projected at 26% with next year's consensus earnings forecast at 92 cents. RGC is throwing off $395 million in operating cash flow and sports a terrific yield of over 6%.

The same Hollywood machine that has created all the previous hits is still in place, and I believe RGC has plenty of legs left before the world becomes educated to downloading movie content over the Internet. Add to that the current advertising rush to find captive eyeballs, which National CineMedia offers, and I believe RGC is a compelling stock to own here at this level.

Remember, being poor is bad, staying that way is stupid.

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