Daily Stock Pick: Marcus Corporation

A portfolio of stocks I've been building since September 3, 2019, is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fifth of five communication services sector stocks striving to join my Volio folio. This could be my twenty-ninth pick for Volio!

That communication services sector includes seven industries all related to delivering messages to and from us. Those Communication services industries are: advertising agencies; broadcasting; electronic gaming and multimedia; entertainment; internet content and information; publishing; telecom services.

My subject today is a small-cap entertainment company named, Marcus Corp Their trading ticker symbol is MCS. This is my first ever report Marcus Corp.

Marcus Corp is engaged in two business segments, which are movie theaters and hotels and resorts.

The Theatre segment operates multiscreen motion picture theaters in Wisconsin, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota and Ohio, a family entertainment center in Wisconsin and a retail center in Missouri.

Hotels and Resorts segment owns and operates full-service hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska and manages full-service hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, California, and North Carolina.

It generates maximum revenue from the Movie Theatres segment.

The company was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

I use three key data points to gauge dividend equities or funds like Marcus Corp (MCS):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

MCS Price

Marcus's price per share closed at $10.94 yesterday. A year ago their price was $39.20. Thus, in the past year, their market price dropped $28.26 or just over 72%.

Assuming Marcus's stock trades in the range of $5 to $25 this next year, its recent $10.94 price might rise by $4.06 to reach $15.00  by March 20, 2021, assuming upward price momentum continues.

MCS Dividends

Marcus's latest declared quarterly dividend was $0.17 paid March 16. That $0.17  Q dividend results in an annual payout of $0.68 per share to yield 6.22% at yesterday's $10.94 share price.

MCS Gains?

Adding the $0.68 annual estimated dividend to my $4.06 estimate of  Marcus Corp price upside shows a $4.74 potential gross gain, per share, which will be reduced by any costs to trade those shares.

Put a little over $1,000.00 today invested in Marcus Corp at its recent $10.94 price, would buy 91 shares of MCS.

A $10 broker fee paid half at purchase and half at sale could cost us  $0.11 per share.

Subtract that $0.11 brokerage cost from my estimated $4.74 gross gain per share results in a net gain of $4.63 X 91 shares = $421.33 or a 42.15% net gain on a $995.54 investment.

Therefore, Marcus Corp, whose trading ticker symbol is MCS shows a possible 42.15% net gain including a 6.22% dividend yield. It could be more, it could be less.   

The above speculation is based on past performance and supposition. Only time will tell if Marcus Corp is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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