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Agreed Fun
As we keep saying Mooky is very good he obviously keeps one step in front and I too would prefer the RSNs which hopefully impact on sp and even shorters, fingers crossed, rather then day to day to help a small % drop.
Hope to see a good day today and one that holds.
GLA
I prefer Mooky does this day after day i.e. run the business through the toughest times it has faced.
Building a strong supportive relationship with its lenders giving the company a route to a (hopefully) prosperous future while (mostly) not diluting shareholder value.
Rather that than spending time with daily updates every time SP moves a couple percentage points for the small investors on a bulletin board ;-)
Insider Could not agree more with this comment “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”
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 and never going to go down again.
Soon as price rises you attract the PI and institutions as it catches their eye quickly and your motley fools and the like report it.
This is going up and one thing is for sure, we will be trading more than 3m/4m shares today - we will do those levels in an hour.
Fasten your seatbelts everyone, we are about to start moving.
Normally, you'd expect taking on more debt to be seen as an opportunity to crash the sp.
But the encouraging thing here is where it says ' does not have a material impact on the Group's weighted average cost of debt.'
And also 'agreed covenant amendments on certain of its existing debt facilities, including reducing the minimum liquidity requirement and relaxing limitations on the use of cash.'
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.
Excellent news and surely had to be seen as such by the market.
Surely surely surely this now leaves not only 66p but the 60s and 70s in due course? Has been pushed down way way way too far by though shorting expecting a dilution via share option or liquidation threats due to running out of money.
Time for those shorts to close boys.
See you on the other side when we are rising through the 80s and 90s.
Not often we can say this with Cineworld but this IS going to be a good day.