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This rise is driven on fundamentals listed above.
I fully expect to see us on our way to a recovery.
22 May 2020 = 58p
26 May 2020 = 69p
27 May 2020 = 77p
28 May 2020 = 102p intra-day high
A shortage of willing seller's holding the rise.
Shorters need to chose between Armageddon and mere agony.
Been in for a while. It was clearly oversold and the recovery is welcomed.
A bit cautious on this now. We’re verging on the overbought territory now, imo. Unless we’ve seen material change that I’ve missed.
Out for now but will keep an eye on the SP and possibly come back in if it falls back.
Trumps' suggested payroll tax cut means a typical $1200 for employees.
If it goes ahead, some of that will go into retail investor's RobinHood trading app.
They'll probably look for under-valued stocks, those on the move?
FOMO may even want to get ahead of it actually happening. The 'rise before the rise'.
Sentiment with undervalued fundamentals...
And here comes 49p....
@Indpeth you need to follow the trend.
22 May 2020 = 58p
26 May 2020 = 69p
27 May 2020 = 77p
28 May 2020 = 102p intra-day high
This isn't a ramp, I am only presenting what has been witness before.
DYOR and good luck.
Good post racandfz, pretty much spot on.
Shares are a bit like bouncy balls. Down and up until they sort of settle until the next bit of anything material/sentiment hits.
We had an initial bottom of 44+ and then 31+.
The market naturally expects a bounce.
Shorters were hoping for a third bottom and will have to decide to wait it out and risk shorters own version of Armageddon or take a hit now. Assuming they're not still waiting to sell their borrowed shares...
Nasdaq over the pond has seen a (temporary?) move away from tech stocks to cyclicals and Trump has tweeted on deferring/reducing capital gains tax (ultimately he'll need Congress' purse strings).
So the mood is folk looking for depressed non tech stocks - ie not trading around/better than pre-covid prices.
CINE still offer a 4-6 multiple on recovery and are basically (non pandemic) recession free, even amidst high unemployment.
So we have a recovery for some looking for an initial 1.5 to 2 multiple bounce to e.g. 50-60pence. And then see.
The next big covid news seems sufficiently far down the line to allow time for this to happen. Plus growing expectation of a vaccine means people have fomo re missing the 4-6 multiple gravy train, which CINE could very easily be right now.
Personally I like RS's technical posts. There aren't many people who look at the positive sides of cines balance sheet etc, but RS argues the shorters deramps with facts and figures. Its refreshing.
The question that needs to be asked is:
Do you forsee a recovery of global markets by July 2021?
Given the advancements in vaccine trials and declining numbers in the US, the market is taking a bullish stance and realising that there is a lot of value in leisure bouncing back.
Cinemas have traditionally been recession proof because of their low cost to keep the public entertained during hard times.
Now will be no different.
RS2002 you are fighting a loosing battle with him... he's thick..
You are mistaking LOANS with GRANTS and relief packages.
This is demonstrating your immaturity of understanding how companies operate, IndepthDOESN'TWin
"In advance of the Senate’s passage of the $2 trillion relief bill, The National Association of Theatre Owners already is celebrating the agreement as a big win for movie theaters, particularly the $454B loan guarantee fund which will help cinemas get by on their fixed costs as local and state governments force a shutdown out of safety due to the coronavirus over the next few months."
Source: https://deadline.com/2020/03/coronavirus-stimulus-package-nato-response-movie-theaters-1202892854/
Now let me ask you this - what do you think will come in the SECOND stimulas package?
Not that Cineworld will need it because they are re-opening 98% of their estate, which includes the US making up 73% in just TEN days time.
yawn. Zzzzzzzzzzzzzzz
"Lenders allowed cine to borrow from the UK and US governments."
What's your point indepth? It sounds like your just throwing out buzz phrases now.
All businesses do have debt that does not mean SP wont rise..come on don't tell me cine didn't have debt when it went from low to 100p twice in last 4 months..so debt factor is not something new in business..cine board knows about it so as investors so its not surprise element..
Indepthwins you have your HEAD buried in the SAND.
Cineworld's 2019 $1033m EBITDA was so healthy, it scored 62% HIGHER than the 5.5x ND/EBITDA it needed to pass the covenant test.
Lenders are so CONFIDENT in its ability to manage their debt they increased the ND/EBITDA to 9.0x for December which every savvy investor means covenant testing is going to PASS this December.
The fundamentals don't lie. You can either accept that or continue to remain in denial.
Good luck, all and DYOR - the shorters are desperate to close their shorts and will be looking for shares.
The passive income ontop of the box office sales we can expect for the BIG MOVIE slate for 2020 and with just 20-25% occupancy to see profit, the market is beginning to appreciate that Cineworld has been OVERSOLD.
Sufficient liquidity to see them through until July 2021 in the now highly unlikely event all cinemas remain closed, means their cash flow issues have been addressed and they can now look forward to a POSITIVE cash flow.
The public has been missing cinema and if the figures from China are anything to go by we can expect a HUGE turn-out once the studios get their titles out and it's a big and enticing list.
Exciting times ahead for Cineworld shareholders.
Morning All,
I did post this yesterday, that the trend is looking very POSITIVE for Cineworld.
We have seen, in as little as FOUR trading days, an incredible recovery of Cineworld before.
22 May 2020 = 58p
26 May 2020 = 69p
27 May 2020 = 77p
28 May 2020 = 102p intra-day high
Good luck, all and DYOR.
I imagine those in Rochester didn't read the small print that they can remove their mask once they are sat down with a £9.99 combo deal of popcorn and drink. Again, a great upsale from Cineworld.
Kentlive. Wow. Not even a National. So the people of Rochester do not like wearing masks. Big deal. Will hardly affect Cineworld’s bottom line.
I applaud Cineworld as they are quoted as saying: "The health and wellbeing of our customers and employees is our top priority. We are following government guidelines in order to make cinema-goers feel as comfortable and provide a safe but enjoyable cinema experience."
Also, click the poll data for "Do you think cinema goers should have to wear face masks?" at the bottom @ indepth.
Results?
@1631 BST:
Yes, there is no harm in it = 55%
No, it ruins the experience = 25%
It should be optional = 20%
Seems the majority from the poll are in favour.
The market has demonstrated a recovery and we can expect a further increase, tomorrow, too.
What is with people and masks? The government don't ask us to wear them for the hell of it. If you want to do something, you wear a mask simple.
If you don't want to do it, don't wear one. Easy. There are tonnes of reasons and loop holes to get out of wearing a mask. There is no way in hell cineworld will police it once you have entered the screen.
You actually think cineworld share price will drop because people have to wear masks?? Rediculous argument.
Recovery time me thinks
shorterguy is a software maker isn't he? Perhaps he developed the indepthwins negativity bot!
We have witness Cineworld ride the train all the way back up within FOUR (4) trading days:
22 May 2020 = 58p
26 May 2020 = 69p
27 May 2020 = 77p
28 May 2020 = 102p intra-day high
This isn't a ramp, I am only presenting what has been witness before.
DYOR and good luck.