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Good grief, that was just an example. What if. Not that I was saying I thought it could go to 5p. The question was not about 5p or 10p or 15p. But what if you could sell now, and buy more later after the pandemic is over.
Though that said, I could give you a real world example of a share going to a tenth of its value, Lloyds. In retrospect, would people have been better selling and buying later, or waiting 10 years for it to go back up? Clue , it never went back to its former price range.
No, I am not short on anything at the moment. As to the results, do you expect them to be good or very bad? Combine that with lockdown measures increasing not decreasing. This is a risky share in a disposable business. By which I mean, no one needs cinema. Everyone has entertainment at home that can easily replace it, perhaps not quite as good, but good enough.
@TheINVESTigator If there are reasons it could hit £1, what are they exactly? I'd love to hear your theories rather than meaningless target prices.
JC,
I know you were exaggerating but at what potential price does it become less risky?
30p is a decent guide i think. If it fell from here to 30p I could potentially have around 15k more shares than I currently hold, for the same money. But if it goes to 55p after results day, I'd have 15k less shares.
I just think its safer to not play the games. My opinion though, and I dont expect you to share it.
Johnny, people might have entertainment at home, but the virus won't be around forever. In a year's time people will be laughing at about what life now was like, while cinemas will be open and raking it in. Remember too that Cineworld makes most of its money from outside the UK.
@johnycoder
Like most people invested or not, I believe the results are not going to be comfortable reading. However, I am one who believes that the stemming of cash burn will result in the financials not being as bad as expected. I fully expect the share price to increase on Thursday by a good amount and there to be some panick buying by the short positions.
Let’s see what the big boys do today and tomorrow with their short positions. If they begin to close, like one did yesterday, then perhaps they fear better than expected results and are mitigating their risk....
if you’re shorting the stock and you see the short positions close today and tomorrow then my advice to you would be to do exactly that bud.
On another note...... why is it that you feel the increased UK Covid measures are so instrumental in Cine’s revenue?? Surely you should be concentrating more on the lions share of our sites in the US??
£1 isn't coming for a while. But investments aren't instant cash (unless you're lucky). Eventually, when cinemas are operating normally, and a vaccine has been developed, £1 will be the minimum imo.
I can see in 1 year - 18 months this getting to 1.40, which I think is fair. I'll have probably sold long before then though, missus wants a dorma and new car ha.
@abrooking Perhaps. But the way things are going, does it seem like things are getting better or worse at the moment? Is our government acting rationally? Paying people to have a meal out, then closing pubs at 10pm because people are going out too much. Work from home. Go back to work. Work from home. They are insane.
Yes, I understand they own American cinemas too. Sadly Americans appear just as insane.
@PrayFor When things go back to totally normal, I can see no reason why it cant go back to its 2019 price. Which was between 200-300p. The question is will that happen, when will it happen, and will the business still be viable then? Other factors I would consider: Unemployment level after covid.
One positive thought. There are a lot of powerful people in Hollywood with a lot of money. They will be doing their upmost to get things back to normal. But will they succeed?
@johnycoder
Please re-read my posts. Not once have I ever said, in any of my posts, that I believe the share price will jump to £1 within any timescale.
My earlier post simply stated it is more likely to hit £1 that it is 5p. A comment I stand by and I think you would agree with too if you’re honest with us.
If you want my opinion on what the share price will be come Friday then my answer is higher than it is now. How much depends on the results, on short positions closing and on any potential industry news that Mooky has to offer. I would be very pleased if it jumped over 25%. All imho.
@prayfor I think you have some sound thinking there. If you want to day trade or short, the risks are much higher. Hats off to those who make good money from jumping in and out of shares but like you say, they risk missing the boat on a big jump in price. I see Cine as a very low risk long term investment but not as a short term investment at the moment.
I think cine was dropping a bit before covid , so 140 ish I reckon. However, with the back log of blockbusters you could be correct.
It does all depend on how quickly a vaccine is thrown out. Cinemas aren't going to make nearly enough money to boost cineworld over £1 unless they can have more than 25% capacity. The good news is that China have allowed 75% capacity now, and usually we are about 3 months behind them.
Theinvestogator, excellent post. I agree entirely. I'm not selling any for a good while and add when I can. Low risk medium term. Short term fluctuations are not a concern. ATB
@PrayFor My view on the vaccine is that it is a total red herring. Firstly there has never been a vaccine for a corona type virus, they mutate and change too much. If they could have done so, where was the one for the common cold, which would have made trillions? Secondly, there is no great demand from people to be injected with barely tested vaccines against a disease with a 99.5% survival rate. And when I say no demand, I mean a large % who have said they would definitely not have it.
I know what you're saying, In fact, I've had the same discussion with my mates in the pub. I think a lot of people suspect what you're saying to be true. However, vaccines arent cures. We take the flu jab every year, to help our bodies cope if we catch it. C19 will be no different. The idea will be to give our bodies some kind resistance to covid, so the symptoms aren't as severe.
Jcoder, that is a bit of tosh I'm afraid. Comparing Covid to the common cold shows how little you understand about science, research and pharmaceutical companies.
Sometimes it is best to say nothing and hope others think you are clever. Better that than to say something and prove you are not. IMO. Sorry if this seems insulting but your statement is not just misleading but wrong. Also IMO.
"@abrooking Perhaps. But the way things are going, does it seem like things are getting better or worse at the moment?"
Well, in terms of being closer to a vaccine that will allow life to continue on as before - better. Six months ago we were six months further away from a vaccine than we currently are now.
@sharefall Sadly like most childish posters, you didn't refute anything I said so I have nothing to argue. You are wrong. No you are. No you are. Yawn. Didn't you leave this behind in the play ground?