Mr. Pink's Picks: selected event-driven value investments Message Board

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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: Mr_X who wrote (14322)	10/19/2000 5:31:34 PM
From: Andrew	Read Replies (1) of 18998

The DOMESTIC theater exhibition industry has been burdened by substantial overcapacity, operating losses, long-term leases on outdated theaters, and dramatic overleverage. Recent bad film product made a bad situation worse. However, unlike the many AND GROWING number of domestic theater exhibitors in bankruptcy, Reading is expanding without over-leveraging and while retaining ownership of the land under most of its centers. Reading is redeploying its assets from its few domestic holdings into the higher return development of new Australian/New Zealand movie theaters and entertainment centers. Recently, Reading completed the sale of a majority of its stake in the Angelika Film Center in New York City for cash and equity in cash-laden National Auto Credit, Inc. (O-NAKD). This transaction provides Reading with additional means to further the build-out of its growing new Australian/New Zealand operations. Each quarter, more of Reading’s developments have begun producing cash flow as they move from the construction phase to operating phase. RDGE/ and its parent, Craig Corp N-CRG, and affiliate Citadel holdings (A-CDL) are trading at a significant discounts to net book value per share of these relatively new properties. In fact RDGE and CRG are now trading near 15-20 year lows! Yet this enterprise is converting from an undervalued asset story to a growing operating income story and one of the only public movie theater exhibitors that is growing. There is no doubt that the complexity of Reading’s story and the relationships with its holding company Craig and its affiliate, Citadel Holding Corp (A-CDLa, A-CDLb), contribute to investor neglect and misunderstanding. But anyone at this year's annual meetings heard Cotter publicly commit to merge/collapse these companies into 2 (and consolidated financials at parent CRG) and maybe even simpler single entity in the near future as NOL tax issue goes away. New CFO for ALL THREE COS rather than differing ones. New CEO for ALL THREE COS. How much writing on the wall do smart people on this board need? Would you rather try own/buy the stock at these ridiculous levels as tired investors leave before merger or try to get shares after its announced?

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