Ahead of the Bell: National CineMedia skids

Already trading at all-time lows, shares of National CineMedia Inc. sank in premarket trading Thursday after the company, which sells advertising in movie theaters, predicted a weak fiscal second quarter.

Late Wednesday, the Centennial, Colo., company said it expects between $83 million and $86 million in revenue for the quarter ending June 26, as sales of "scatter" ads _ TV advertisements bought close to their air date _ were weak. On average, Wall Street expected revenue of $91 million according to an analyst poll.

The stock sank $2.31, or 12.5 percent, to $16.15 in premarket electronic trading. Shares closed at $18.46 Wednesday, which was their lowest price since National CineMedia completed its initial public offering on Feb. 8, 2007.

Soleil Securities analyst Marla Backer downgraded the stock to "Hold" from "Buy," and cut her second-quarter revenue forecast to $80.4 million from $88.5 million. Backer said Regal Entertainment Group reduced its drink purchases, which also hurt National CineMedia's revenue.