Member Info for bald_eagle

"So 4p could easily become 40p again quite quickly."
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I doubt that is true....unfortunately.
The amount of new equity issued would be massive....many times the existing number of shares.
Let's say the equity raises £2bn and the existing market cap is £44m. So the existing shareholders will own a very small slice of a much larger cake. Assuming the new equity was issued at 4p per share (with no further dilution)....what would the new company be worth if the SP rose to 40p?.......the £44m would rise to £440m for current shareholders (GREAT!!) BUT the new shares would now be worth £20bn.
So for the SP to rise from 4p to 40p the new refinanced company would need a market cap of £20.44 billion.....which is lot of money!! Is that very likely?

Bzohdan, you are correct. So I have just bought a ticket to the Ukraine to fight Russian aggression.

Mountainous, you have perfectly described the choices facing existing investors. To get out for a big loss (but some money at least to invest elsewhere) or take the risk - in the hope that the company can be saved without too much of a haircut for shareholders - the risk being you lose everything.
I suppose the rewards would come IF a knight in shining armour appears to save the day, pay shareholders a decent price and accept the company debt. It has happened before!!....but not much sign at the moment.

FunInvestor, I think their might be something wrong either with your maths or your assumptions. It is difficult to see current shareholders getting back equivalent to 30p for their current holding if/when the 'new' (diluted) CINE gets back to £3.
Assuming thet find someone to swap debt for equity the dilution of the current investors may be very large indeed....there may also be a consolidation which wouldn't be relevant to your calculations.

Efectively billions of new shares would be required to re-finance the company (debt for equity). this would wipe out existing shareholders.....unless they can buy some of the new stock, but that would require putting new money into CINE.

Rock8, that's what I thought....that Chapter 11 only applied to the US part of the business. It might be that the US chain was profitable and couldn't get Chapter 11....I did hear the US cinema numbers were strong.

Ideally they would come to a gentlemsn's agreement with Cineplex ove rthe court case. Then sell assets or find some way to refinance the business. But the sharks may be circling!!

Bullbears, I suspect the business will remain largely intact but under new ownership....getting rid of old management & starting anew with a sound financial footing. Unfortunatly for shareholders it has been bad luck over the pandemic that has done the damage. Private equity will be crunching the numbers over the weekend and probably get their hands on the assets.
Nobody saw the pandemic coming and it looks like CINE may be one of the casualties!!
I don't know if there is a way back for shareholders but I wish them luck.....better luck.

" Im thinking maybe they are a 15 year old on their summer holiday?"
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I suspect that isn't far from the truth!!

It would be intersting to know if this is true. I would assume that committing to buy or sell is unaffected by the suspension....so the buyer would 'legally' have to stump up the cash and equally the seller should also get their money. However if the transaction is not honoured within the settlement period then the platform may have rules to withold payments.....but then I presume it gets legal.
Presumably if a buyer is forced into bankruptcy or administration themselves - if they were to make the payment - then perhaps they can decline to settle....but basically I don't know!!

"All those that jumped on Thursdays rise were severely burned on Friday unless they got out on the day of purchase."
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Daytraders trying to talk up the SP....but it looks like CINE has big problems. I expect some people will be bailing out before the ship sinks. It would have to be an analysis of the risks of getting a little back now or waiting to see if things ain't as bad as they seem. Not a pleasant scenario. Personally I wouldn't put new money into CINE.....daytraders may have a different mindset, they love the risk/reward game!!

I wondered why the SP was rising strongly this morning

"I will galdly try to help advise others where I can but in the end if no one wants any help advice why should I give a fig it's not my money in Cine."
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Jed, I have read a few of your recent CINE posts and they make sense (IMO). However I suspect that a lot of investors are in shock and having trouble working out the truth from the dreamers comments. There are also the master manipulators in action trying to game a quick buck.
I suspect there is a defined pattern that these things take.....unless a knight in shining armour suddenly appears (not impossible but remote!!).

It's about risk and reward. The SP rising so quickly over the last 2 weeks leading up to the ex-div date gave an opportunity with little risk (IMO) to sell some shares and bank profits and/or re-purchase at a lower price. At 285p it was near post-pandemic highs, talk of a recession in next 2 quarters could dampen SP (of all shares) and (for me) the cherry on the cake was the Jefferies target upgrade, pointing to a ramping of the SP prior to ex-div date........or perhaps it was just one of those things!!!.....but still a relatively risk free transaction (IMO).

The danger is that 'something' happens to boost market sentiment, say the war ending, and one is left holding the baby.....which would be an unknowable risk....unless one had contact with one of Putin's cronies.

"fake drop?? Lmao"
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Is it true that Donald Trump bought a load this morning?!.....if he can get the MAGA crowd on board this is going to over £5. [definitely Fake News]

A bit of a rollercoaster ride at the moment. Day traders loving it no doubt. I wonder where they will take us next?!

"But kitchens have been around 100s of years,...."
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We are a society driven by experiences - when we have the cash - that is unlikely to change. The structure of those experiences may alter over time. The 'problem' for companies like CINE is the short term.
Weakened by the pandemic if they can survive the short term squeeze on household budgets then surely they have a future. But who is going to lend them the cash to weather the storm on the horizon?....and what will shareholders be left with?

"Remind me why.....anyone bothers holding a share for dividend purposes ?"
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I take it the question was rhetorical.
People have different strategies......tortoise & hare!! Both equally valid but with different routes to their goal.
It was 'fairly' obvious that buying yesterday was risking the drop we see today ex-div.....however there wasn't much advice from analsysts & share pundits about that risk (apart from on here by some astute people).
The SP might hit 290 tomorrow.....some pundits are talking about the end of the war or inflation dropping....I suppose it is all the 'fun of the game'. But in terms of a 'big' drop today it was nailed on.

IMO very risky and many sleepless nights....not for me (I have my own nightmares to deal with). Possibly a good day trading stock for nimble footed with orbs of steel. Suggest bank profits where you can and prepare for stormy weather ahead. Day traders will be like pigs in the proverbial.

".....To my mind, there’s a lot of pushing/promoting of L&G, going on at present."
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I have noticed that too. The Motley Fool especially....but being recommended by 'the Fool' isn't exactly a recommendation!!
Yesterdays "Jefferies raises Legal & General price target to 335 (310) pence" seemed a little odd. Anyone buying LGEN yesterday morning at circa 287 on the Jefferies target would be a little annoyed.....they have secured the 5.44p dividend but the SP has currently fallen quite a bit more than that (as some predicted it would).
I am sure the SP will get back to circa 287p.....but don't know exactly when (unfortunately).
But I suppose analysts have their reasons for raising their targets when they do.

"When a share goes Ex-Dividend it means it is now trading as normal, Excluding the dividend."
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So the SP automatically starts today 5.44p lower.
Any change below (or above) that 5.44p reduction at the end of the day is a hypothetical net loss (or gain) to shareholders.

"would it be such a surprise if some sort of Cineplex/Cineworld merger took place ? "
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It's beginning to like that sort of deal may be required and preferred.....the big question is what the other party thinks. The current management are 'probably' already packing their bags and updating their CV's.