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 earlier this week. 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 2020 releases to next year — 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 its pandemic woes at this point.
And it’s something Wall Street veteran and Alpha Investor Editor Charles Mizrahi predicted from the start of the new COVID-19 normal…
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 at Alpha Investor, we see the streaming industry taking over in the years ahead. And we’re betting on one company in particular to lead the way.
But it’s not Netflix…
Instead, this company is giving Netflix a run for its money in dominating the streaming market. In fact, its streaming service beat its four-year subscriber target in just 10 months.
And as movie theaters continue to struggle, it’ll use this streaming platform to its advantage to release new films that you can watch right at home.
To find out the name of this company while you can still pick up shares at attractive prices, all you have to do is become an Alpha Investor today.
If you click right here, you’ll find out how Charles pinpointed this great stock that could help grow your nest egg in the years ahead.
Managing Editor, Alpha Investor
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