Why Cineworld is a good investment during the recession

Cineworld operates in an industry which traditionally does well in a recession. Even in the Great Depression Joe Kennedy made part of his fortune through his investments in cinema chains. Cineworld is protected by high barriers to entry and is one of the market leaders among the cinema operators in the UK and Ireland. Management are investing in future growth, including the rollout of digital upgrades across their cinema chain and acquiring flagship locations like the O2 in London. The stock is cheap, pays a nice 5.1% dividend yield and generates significant cash. It continues to trade well with 3-D movies being the newest public attraction.