Since last year's summer movie preview featured mostly sequels and adaptations, this year's preview has been expanded to include more than just potential "blockbusters." The following is a chronological list of not only the most hyped film fare of the summer, but other noteworthy smaller entries, and a short commentary on each.



5/2 - Iron Man, Viacom (NYSE: VIA)'s Paramount Pictures
The first of two big Marvel Entertainment (NYSE: MVL) adaptations of the summer, the Robert Downey Jr. led Iron Man has been getting a ton of hype and critical acclaim. This is the second year that a comic book adaptation has kicked off the summer, following last year's Spider-Man 3, which grossed over $150M over its opening weekend.

5/9 - Speed Racer, Time Warner (NYSE: TWX)'s Warner Bros.
Another big-budget adaptation of a generations-old cartoon. Last year's Transformers was, to my surprise, a huge success, so maybe Speed Racer, in the capable directing hands of the Wachowskis, can be as well.

Shrek 3 and Spider-Man 3 are coming to a movie theater near you, just as the sector is coming out of an ugly downturn.

Overcapacity and over-leverage had led to an ogre-ish performance causing theater operators to file for bankruptcy or get picked up by private equity.

Now theater companies are going public or emerging from bankruptcy with little fanfare. However, according to Buzz Zaino, long-time great stock picker at Royce Opportunity Fund, it is time to start looking at these stocks again. In Barron's fund-manager interview (subscription required), Zaino said box-office receipts are up 7.2% year-to-date with a summer of good new releases expected to keep the momentum going.

Carmike Cinemas Inc (NASDAQ: CKEC) looks particularly attractive since it has upgraded 75% of its screens to digital, on which, in addition to showing movies, new alternative concepts are expected to generate additional revenue. Other movie chains Zaino likes are Regal Entertainment Group (NYSE: RGC) and Cinemark Holdings Inc (NYSE: CNK).

Expected improvements in box-office receipts should lead to nice incremental EBITDA margins especially for Carmike since its theater upgrade is mostly completed.

Few have mentioned theater stocks as a place to invest in. Zaino is one of the best at find long-forgotten industries as fundamentals are on the upswing. This ogre of an industry appears ready to return some princely profits to shareholder.