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PinkEye
You're right and currently in the blue. I guess because the markets look six months ahead and can expect a better outlook than the likes of Indepthwins,investroid,oceanpassage,Jwd222,guitarman001,Bertles,johnht,shorterguy and other like them who feed off the negativity that is circling around Cineworld
Why has AMC’s share price not dropped?
Also the tax credit from regal which I think was something like 150 or 200 million
Yeah McDonald’s has done one aswell must bran Tesco is doing one...
Just got to on what has been said and dilution wasn’t on the forefront and plenty of things were before this including over 100 million by landlords paying back money for refurbs
That’s a large amount now that cinemas
Are open and revenue is coming in
AMC done a dilution cine may do the same
Just on that 1st point alone having been to the cinema a number of times since they opened it has been absolutely dead on every single occasion.
Opening their estate has cost them money and I dont believe they are taking any worthwhile income to offset costs right now.
No doubt they will need further liquidity but a dilution would equally water it down so much as to be a non-starter. There may not even be a succesful take up.
Its a sad day for Cineworld :-(
Unfortunately, no business can try and operate without shoring up the cash reserves, whilst operating in a hostile and unpredictable environment
The RNS today clearly stated two bits of information...
1. "There can be no certainty as to the future impact of COVID-19 on the Group. If Governments were to strengthen restrictions on social gathering, which may therefore oblige us to close our estate again or further push back movie releases, it would have a negative impact on our financial performance and likely require the need to raise additional liquidity."
2. "We are encouraged by our recent performance in our newly reopened markets, in particular the good performance of Tenet earlier this month. We are excited by upcoming films for 2020 which include 'Wonder Woman 1984'; 'Black Widow'; the latest James Bond 'No Time To Die'; 'Dune'; 'West Side Story'; 'Soul' (new Pixar); 'Death on the Nile' and many more."
So clearly the RNS was written BEFORE both the new UK lock down measures, and the Disney announcement to delay the superhero movie "Black Widow" and Steven Spielberg's "West Side Story" to summer 2021, both of which happened over the last several days.
With debt having ballooned to $4 Billion and a whopping net loss of $1.6 Billion in the first half off 2020 alone, even with all the cost saving measures, I fully expect the business to raise cash as they tackle this very difficult time to try and see it through.
To me it's all but certain that there will be cash raising exercise shortly.
AMC Entertainment Holdings have announced they are raising cash via dilution today, so soon after a refinancing only a month or so earlier.
Only then may the share be investable as they steady the ship and Covid-19 improves but for now, i expect a dilution.