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Yes, it is better you keep quiet and sell up(doubt you are invested) as you are worried about finances.
£6 open on Monday, let's see if my market control works both ways.
Too much ridiculous with your post SmallT to respond any further.
FI - come on mate. Stop with your comments - you’re driving the share price into the ground! Lol.
Just topped up another 500 shares at 64.5
FI, it is best to sell up(although I doubt you are still invested) than worry about CINE finances. How cleverly you have spinned the good news about securing liquidity to negative. SP started to drop after your commments. Could be a wider market thing and nothing related to your comment but others should make a note of FI comments.
First, if you read the first few lines in the RNS, it said no material impact on the cost for debt. Moreover Mooky said 200m of incremental loans, which means they are not desparate to take all of 200m at once now and they are not getting all at once either as it is incremental and Mooky will use it at will and when needed and that also means that they are making money with tills ringing loud every day and every month and that proves that you "falsely" claimed previously about monthly cash burn is alarming and it is NOT.
Ofcourse one may ask why secure additioanl liquidity when tills are ringing and making money. Well, when you are running world's second largest cinema chain, you will need money considering the pandemic and moreover it is an incremental 200m loan, which Mooky can use when needed(that is why no material impact on the cost for debt)and considering we are still in pandemic, it is good to secure money now when trading conditions are good and be prepared for any uncertainty with the future.
Maturity of the new 200m is not until 2024 so that means lenders are happy to wait till another 3 yrs from now! Read that again - lenders are happy to wait till 3 yrs from now! It shows the confidence on Mooky and on cinemas as they clearly are seeing pent up demand for cinemas. Even other cinema chains have said that they seeing pent up demand. We also have seen how many here have posted saying that cinemas are full and very busy at the peak times.
Mooky says that since cinemas started reopening in April 2021, trading has continued to improve and the Group is now "well-positioned"(wouldn't use that word if there is a worry about finance) to benefit from pent-up customer demand and the exceptionally strong film(Bond and many more) slate through the second half of 2021.
We have the demand and all that we need is more movies every month and second half has exceptionally strong films.
This is good news.
The board have a duty to identify and mitigate risks - ensuring they have adequate liquidity to cover any risks is part of this
Lenders perform DD before extending facilities and have better visibility of the financials than the public markets
This is good news!
Currently 64p a share and someone suggests we could see 1.50 by September geeeeeez. ( some still clearly off their heads )
The loan is great news , it means we can continue through the last bit of this pandemic , but in my opinion it shows money and finances are STILL very tight. I wonder why this was announced now rather then after financials like last time. Only mooky knows I guess.
But overall great news to see us out the pandemic , clearly will be around in 2024 , and no impact on debt payments.
The very fact we need another loan though for me isn't great especially when we were told we could survive shut throughout this year. The very fact we have it means we need it right.
Results will be very inrresting. Its still a long term rollarcoaster for me , you don't jump out half way and get injured with losses. I will wait for this ride to stop before jumping
I fully agree with Funinvestor. There's obviously liquidity issues, and the beast needs feeding, hopefully this is just a short term fix and normal service will be resumed shortly!!! Remember the major shareholders are also looking after their own interest, and the old saying, "you don't throw good money after bad" springs to mind. The fact that the company has been thrown a lifeline, and is being supported is a positive. Definitely patience is required, and I may have to top up if the price goes back to the mid 50's. The fact that the major shareholders are prepared to support the company, gives me reassurance in my investment. I'm quite happy and confident for it to come to fruition. Good luck all.
Unfortunately released RNS on a bad day for the markets, hard to know the impact if any on the SP.
Being dragged down again by bloody far east this time, and yesterday's GDP news from the US.
It's absolute s---e how all these external factors influence the Ftse when the UK is actually doing ok.
When you say how the markets have reacted? I am a little confused as there are a lot more buys than sells, how are they supposed to react?
Pretty clear from how the markets have reacted (or not) that this additional debt secured isn't the amazing short-squeezing news the rampy lunatics believed this morning. It's hilarious how many people look like complete amateurs on this board.
Key is the phrase "operational flexibility", great if the debt is potentially going to be used to realise new opportunities in an opening market. But not so good if it's continuing to plug holes against opex loses. Hopefully the former.
The next few weeks will be interesting. I feel shorts seeing that not only are lenders willing to lend more and later terms. But Cineworld will not go bankrupt anytime soon and could proper towards the end of the year. Particularly as streaming services are not the great success that they felt they would be. Could see them closing their positions, before a company like Amazon starts looking at buying Cineworld and benefitting from great line up of movies coming out and the revenue this will bring. IMO
Being accepted for a loan when you need one is obviously good because it means the creditor trusts you can pay it back - needing a loan in the first place isn't. It really is that simple.
FI I agree, I think we are currently somewhere in between the "base case scenario" and the "severe but plausible downside scenario" - but to be honest, looking at those scenarios, I think they were always being a tad optimistic to expect 60% of the 2019 levels from May - I can't really remember now (was a while ago, so I might be totally wrong), but I don't think we were even allowing full capacity in the US in May - or maybe we did part way through, but we certainly didn't have a full line up of movies out (we still don't).
It is likely that this month we are going to hit that 60% figure, which in the "Severe but plausible downside scenario" was forecast for the month of August, so a month earlier, although, one hopes that it will continue to rise from there and not hold at 75% for the rest of 2021. I don't believe it will plateau at 75% , but that is just my gut feeling based on the rate it has been increasing month on month - it hasn't shown signs of slowing as yet.
There is a lot of money to be gained by being invested here (IMO), it will just take some patience.
People have interpreted most things wrong and seem to isolate information as if it's the only variable for sp movements in the immediate term. Who knows though, it's still early
More conservatism needed on this BB generally.
FunInvestor I agree people thinking the SP is gonna shoot on this RNS thinking it’s all good news well it clearly isn’t.
If refering to me when talking about the cash burn (clearly you are) then don't make up my reasons for discussing it or then go on to make up a false reality.
Which part of the company now taking on further expensive debt for the second time since it was already supposed to have enough liquidity do you not fully understand?
Do you not recall that at the point of taking on last additional debt it was seen to be enough to see them through this year and beyond with the company's base case assumptions.
Now do you think by taking on this debt it means:
1 The company was performing on or ahead of those base case assumptions.
2. The company was running highly cash positive since reopening.
3. The company already still had sufficient flexibility in its liquidity headroom to be confident of seeing it to stage where it expects to be running at whatever forward levels of admissions will be.
Having been able to secure the further debt and continued support from lenders (at a cost) and the covenant amendments (wouldn't be required if liquidity was absolutely no issue and were 100% back to admission levels) is good news for the company and shareholders.
That is different from considering it good news the company required to or at least took judgement it felt on balance was worth doing.
" Essentially it gives us a great comfort blanket to use the debt if we need it (not unlike a overdraft you don’t need to repay until 2024) to let us cruise into Q3 and Q4 when the tills really start ringing and the money rolls in.
Lenders are not stupid, they have supported Cineworld through its darkest hour as they know when the tide turns we are a very successful cash business which will go from strength to strength.
Rearranging of covenant agreements is also a huge plus and puts us in strong position moving forward to
start bringing in serious cash with the huge blockbusters waiting in an unprecedented queue.
Shorters have banked on this NOT happening and results showing we are close to running out of money and breaching our debt agreements, this now WONT happen and only way the price is going is up and the shorts are going to need to get out before the quickly start to drown - it’s a case of who blinks first and they start to close before they all need to jump for the exit for fear of being left behind with price rising"
I28 excellent post!
Fantastic update. Did not expect RNS so close to the results.
"The lenders and indeed Cine are sending out a statement that they believe in the business and are happy to support it through to a return to normality" well said Crumpets.
I said many times Mooky will take care of the debt. It is better to leave monthly cash burn to Mooky than trying to do a guesswork and creating panic. He secured more liquidity without dilution. Yet we will get reminded about debt by the expert resident trolls here.
It is clear Mooky is aiming for his bonus when SP reaches £1.90!
By the time Bond releases, we could be at £1.50!