Shares of entertainment and media group Village Roadshow Ltd (ASX: VRL) have fallen sharply today, dropping 6.3% or 36 cents to just $5.33. The stock has now lost 37% of its value since last June.
So What: Today's drop can partially be attributed to the stock going ex-dividend. When Village Roadshow reported its first-half earnings late last month, it announced a fully franked 14 cent per share dividend, up from 13 cents per share in the prior corresponding period.
However, it's also possible that investors are punishing the stock following the malfunctioning of a ride at its Movie World theme park on the Gold Coast on Sunday. Although reports suggest that none of the 13 passengers were injured in the ordeal which involved an issue with a wheel on the Green Lantern ride, investors could be concerned that attendances at the theme park will drop in the near-term.
Notably, Village Roadshow isn't the only entertainment group under fire from investors recently. Shares of Ardent Leisure Group (ASX: AAD), which owns the Dreamworld theme park on the Gold Coast, fell dramatically last week after the company announced its long-standing CEO would step down from his role at the end of this financial year.
Now What: Given the heavy falls experienced by Village Roadshow recently, now could be a good time to look at buying the stock. Its first-half results were impacted by factors outside of its control(including unseasonably heavy rain during the holiday season), but strong long-term growth is still on the cards for investors willing to remain patient. To cap it off, the stock is expected to yield 5.3% fully franked this financial year, making it an excellent play in a low interest rate environment.