We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
As Allkap pointed out, Analysts are pricing in a 25% chance Plex will win full amount in the appeal. Anything lower than the synergies calculations will be a win for cineworld because the full price has been priced in and looming over the SP since december.
As for the 30 Jun 2022 deadline, the information was from the Feb/Mar RNS and may have changed in the interim. The Last RNS about it in May said they obtained a waiver for the GCF in case they fail to make the payment 2 days ago.
Agreed @bullsbears, and CINEâs acquisition strategy also has put the company in a lot of danger.
CINEâs strategy appeared to be âleverage now, reap benefits laterâ. And to be honest, itâs not the worst strategy. If the pandemic did not happen, then by we would have seen the true benefits of the regal acquisition. Itâs just a shame that covid happened.
Then again, who would have thought that CINE would be purchasable at such a low price. Once these headwinds clear I think I will be incredibly happy with myself for making the decision to invest here. Time will tell, but Iâm hopeful :)
@mountainous yes a rights issue would be 'OK' - in a worst case scenario (and agree prob better than a debt for equity swap).
TBH anything other than administration - and I have confidence in the share to rise.
Its at a bargain basement price - but its got an as thriving business as anyone in the sector is likely to have. (Unless you were lucky enough to have been caught up in a unique social media short squeeze or funded by a bottomless fund.)
Its expensive to acquire property/locations - and im sure pretty much every business involved in property funds expansion through borrowing/debt.
I doubt CW's debt is due to them being inefficient, or paying over the odds or not knowing how to run a cinema - its just the nature of expanding a property portfolio and they were very unfortunate due to the pandemic.
The court case decision/fine was the biggest kick in the n*ts imaginable - I still cant believe at the size of the penalty. Just simply outrageous.
Looking at the charts up until that point - technically the company was primed for a reversal. It was around .45p, and looking like it was bouncing off a major support and bottom a range (descending wedge) - with BO clearly picking up. Then the floor got taken away from under its feet.
The court case situation is just crazy and there doesnt appear to be any real solution in the interim to raise the sentiment. They cant say they have lenders backing in case they dont win the appeal, or that they can manage the fine in a worst case scenario - as this might jeapordise some of their argument in court....and no one wants to go near the share unfortunately with such a huge fine hanging over it.
@oceanpassage, are you under the influence of something?
It is evidently clear that you are here for nothing more than to spread fear. If you were a legitimate shareholder, then you would have known that the vast majority of Mookyâs net worth and his familyâs net worth is based upon the performance of cineworld stock.
I donât know how on Earth Mooky would see a debt-for-equity swap as an âattractive optionâ considering his net worth would effectively be wiped out too.
@bullsbears in a very worst case scenario I would prefer a huge rights issue. I actually have no problem investing in CINE, it is just the headwinds that make me uneasy a bit. If things such as Cineplex or debt werenât an issue, then I would be all over CINE stock anyday. The stock was outperforming the FTSE 250 pre-pandemic year-on-year. The company and the business model is solid, itâs just these headwinds right now. So, I wouldnât mind a big rights issue if it meant I could invest further into CINE. At least with a rights issue you have the option of increasing your investment, whereas with a debt-for-equity swap you are just a sitting duck.
Please excuse my lack of knowledge in this area - but debt for equity swap - wouldnt this lead to dilution of shares and so a drop in share value - not just simply completely wipe out retail investors? Im not saying i want this to happen - but if its that or going bust - id pick the debt for equity....
Cinema is back. In this country anyway, and with June BO numbers, probably pretty much back in other places too.
Each time ive been to the movies recently - its been just like pre-pandemic.
Ultimately CW have customers coming through the door - seemingly pretty close to normal. They also have a physical footprint - sites in key locations - which is not easy for anyone to just replicate. It would be crazy to fold the business.
If the debt levels have grown due to teh pandemic to a level which is difficult to manage - but business is back to normal - then personally - i would be open to pretty much any solution as long as it wasnt administration - as I know following which the share price can only really go in one direction - even if its a longer hold .
Hope you're right. Minions 2 is breaking out - first back to back 100m openers since 2015! With Thor 4, Avatar Remaster, BP2 and the crown jewel if he can do it for a third time Avatar 2 still to come!
unless a debt for equity swap is agreed wiping out retail punters ...
In one swoop the creditors would be sitting pretty. Mooki would get an attractive option, and the business is saved!
everyone is happy!
well maybe not everyone
Honestly does the world need hairdressers? Yes Does the world need cinemas? Yes. Stop ramping down ÂŁ1 by end of year. All this negativity make me laugh. Keep cool and watch people go back to cinemas. The banks wonât get there money back if they go into admin. Keep calm and carry on.