No rush to sell Village

Village Roadshow’s share price has risen 66% since upgrading in Village Roadshow: A profitable ride? from 6 Dec 12 (Long Term Buy – $3.80) and is now well clear of our $5.50 sell price. Still, we’re in no rush to sell. With the theme park business benefiting from a lower Aussie dollar and sunny weather, combined with higher cinema visitation, we expect it to produce an impressive result – and better than we previously expected – when it reports later this month.

Longer term, the company's new water park in Western Sydney, developments in China, and a cinema production venture that looks increasingly like it's worth far more than $80m means there are plenty of reasons to continue to hold this stock. We’ll update the situation in more detail following the results. For now, with the share price up 43% since Village Roadshow: Interim result 2013 (Hold – $4.40) we’re increasing our sell price to $7.00, and increasing our portfolio limit to 5% in line with our new process. HOLD.