Member Info for 2reincarnated

Look at where the SP is in an environment in which the DOW is rising on " false liquidity" just imagine when US investors come to their senses and we see at minimum a 10% correction. some speculators are calling for the DOW to correct by 50%, where will that leave Cineworld?

Think it is having the opposite effect

Good post, bags of common sense in it. This will get back to over a quid, but the point I am making is it wil go a lot lower first. The problem with the markets after the march crash were that the liquidity provided by the fed and most importantly the purchase of corporate bonds, artificially inflated the market. They have been buying the bonds of bankrupt companies, it is a bit like the tge UK government buying the bonds of Woolworths and Debenhams.
In March all shares crashed at the same time and nearly all recovered at the same time, so by the time the shares you held recovered, the ones you would have liked to buy when yours crashed, also recovered. You could not be inplaces at once. When the DOW corrects/ crashes, you will find some shares that have fallen on the FTSE will recover when the DOW recovers like they did in March, but not all of them. If you are in the right stock and I think Melrose is one of them, you will be able to sell and will find many that will continue to fall, so you can throw funds into them.

Love the way the SP appreciates it

1st August

https://www.telegraph.co.uk/investing/shares/three-cheap-stocks-will-survive-covid-three-wont/

I disagree with them. You are going to survive, but you are going to 20p first.

hope that is the floor

carry on dreaming. More like a Rights Issue.

20p?

and we have not yet seen a ''bloodbath on the DOW'' but all agree one is due.

Explain

Quite soon

"starting to look tempting?" You obviously have a very short memory, it has already fallen to about this price during very good times before the term Covid 19 had even been invented.
This company is operating in an extremely environment and 60p is the " recovery price" from a "horror story low" I believe the low to be 20p.

Think not much lower than 20p and Lloyds certainly is not in the position it was when it was bailed out, coming into this crisis it was strongly capitalised.
Think there will be a further lockdown and we will find pubs ansschools closed, in fact I think the Schools are only opening because of the devastating effect of having geen out of education for 6 months. If they close again in Octoberish, it will be until after easter, sadly.

JV will go ahead 100% because the Government cannot be seen to be doing anything that prevents a company surviving and getting stronger.
The only concern is that even after the JV is approved, the SP cannot surge to 60p or even 70p because it will continue to be weighed down by the threat of a further closure of pubs.

The question I would ask myself is whar would the SP be if there had never been a coronavirus outbreak. I would suggest no more than 80p, that is based on the profits and high debt.
The company now is stronger with the debt reduction programme, but with the lockdown only recently ended sales are weak and will for a long time. expect a poor Christmas. If there is a vaccine that offers even 3 months protection next year, that will signal the beginning of the end of Coronavirus. Thankfully for you stockmarkets are forward thinking and the SP could hit 60p because some 12-18 months later Marstons could be a strong company. The only concern is the short term likelyhood of the SP crashing to 20p.

Rony explain why please

We are currently at the "new recovery price" this is the price to which this share will rise to after the next "bloodbath" takes it down. When it is back to 50p it could rise quite quickly to 80p on the hope vaccine treatments could allow numberd using buses to rise to somewhat normal levels.

The good thing is whilst the DOW and Tech stocks are wildly overvalued, we are not in the same situation as we in March where all the market crashed at the same time and most recovered almost instantly at the same time. This meant if you were holding a stock by the time it recovered, so did another crashed stock, meaning you couldn't be in 2 places at once.
This time things will be different, you may well find BT reaches a new low after another of your stocks recovers, meaning you will get the chance to jump in at a low.

I would not be at all concerned, at worse you will be holding your shares for a few months to break even. Longer term you can make a 20% profit. I personally feel that if the DOW corrects orthe Nasdaq crashes like it did during the dot com bubble, we could see this as low as 50p, but back to 80p just as quick.