Two Lights in a Dim Economy

So rarely do we hear about a company or an industry that is doing well. Yesterday I had the chance to speak with two different CEOs of two very different companies that are each doing very well, given the current economic climate.

First up, David Brain, CEO of Entertainment Properties Trust, a REIT (Real Estate Investment Trust). The company owns movie theaters and other entertainment destinations like water parks, casino projects and ski resorts. While the stock just hit an 8-year low based on lower-than-expected guidance for next year, the company did post a 29% increase in earnings and a 17% increase in revenue year-over-year. The company also had seven consecutive years of double-digit gains, but warned Wall Street that 2009 numbers will decline. In my interview with David, he said the company has also slowed or stopped all development and that there is a chance a small percentage of their $3 cash dividend will be cut.

But, the thing that really got me excited was hearing about the movie business. Entertainment Properties relies heavily on Hollywood because 50% of its portfolio consists of movie theaters. Get this -- box office receipts were up 20% in January year-over-year and movie sales were just north of $1 billion in January. A Hollywood economist named Jack Kyser at the Los Angeles Economic Development Corp. recently told Daily Variety: "2009 has gotten off to a very strong start. Maybe moviegoing is recession proof." In the last five recessions, box office receipts were up in all but one case. Not bad! Now that's something to get excited about. Take a look.

Next up, Pacific Gas & Electric CEO Peter Darbee, whose company just saw its profits double to $517 million. Net income was up 34% and the company increased their dividend -- a nice 4% dividend in this economy is not bad! We talked about the opportunity to upgrade the country’s electricity grid and the need to coordinate the response and actions of the multiple regulatory bodies that oversee state-to-state and federal guidelines for the different energy sources. We also spoke about why he's investing heavily in solar power. He’s not a big fan of coal and the emissions. See why he's investing $1.5 billion in ratepayer's money to add 500 megawatts of solar power in hopes of generating enough power to supply 150,000 homes. Is he a fan of President Obama’s energy plan? Is alternative energy too expensive? Are we wasting our time? He was terrific. Take a look.