RGC : Liquidation at small profit

Regal Entertainment group owns the largest theatre network in USA, mainly under the Regal Cinemas and United Artists brand. I initiated this position due to the reputation of movies being a robust industry in a depression, and also because I had a price target of $15, which is a PE of 20 over its previous year’s EPS of $0.73. During the two months when I held it, the stock has underperformed the general stock market, and does not appear to be moving towards the price target. I liquidated my position for a small profit of 6% over 2 months. Perhaps the threat of Internet distribution of movies is threatening the core business of RGC, or perhaps a PE of 20 is simply too rich in this climate. I chalk this one up as a miss.