RE: Netflix ain't doing bad today27 Jan 2022 19:38
Not every industry operates as an oligopoly. Plenty of industries are fragmented in terms of both market share and profitability.
Please readers on his board do not read and automatically believe. What a ridiculous thing to say. Indeed, some of the smaller players are much more profitable than the supertankers at the top of the industry, particularly for investment banking. The boutiques often are far superior - consider Houlihan Lokey.
Only a very small segment of the market use options to speculate. The vast majority of options (and other derivative instruments) are essential in the transfer of risk. Some derivative instruments are much older than any stock market. Hedging using options, swaps, futures etc. is essential to the stability of the market.
A hammer can be used to build or repair things. It can also be used in a violent way. As with any tool, it can be misused and abused in an unproductive way. Derivatives are much the same. You demonstrate ignorance by condemning an entire concept by focusing purely on a tiny proportion of the market that abuses it. It would be like me saying all football fans are hooligans.
Lending stock is often carried out by banks in order to offset exposure taken on by arranging a position for a client. An intermediary may hedge an equity swap in such a way. It's not because the intermediary has a poor outlook on the subject equity, just a mechanism to offset risk. Not shorting, in this example, would be foolish.
Most of the traders that have borrowed Cineworld shares in order to profit from downside share price movement will do it as part of a broad strategy that fits the objectives of their portfolio. Therefore, they won't be chopping and changing their positions as frequently as retail traders do (largely driven by behavioural investing tendencies).
Thecouchman and Bonkers are right - good to be encouraged by the recent rally, and although there is a lot to be positive about (good film slate, restrictions easing etc.) there are still a number of headwinds. You are painfully limited if all you can see on the horizon is good news. Provided Covid keeps mutating into a weaker form, the film slate is delivered as planned and some progress is made on the appeal, there could be significant gains ahead. There are a number of 'ifs' though. The problem here is retail traders often think in absolutes.
Yeah wellington you big shorter! No one is going to take you seriously if you don’t use appropriate terminology. Slugs have nothing to do with Cineworld or investing.
Listen to Chilston. I for one didn’t realise that debt is a debt on the balance sheet. Nor that there is a revenue column on the balance sheet. There was me thinking there’s a separate table for revenue and expenses! And he’s seen loads of court cases.
Glad that it has been clarified the debt was used to acquire business and not used on funding lavish parties. All the evidence was there.
RE: This stock remains very high risk17 Jan 2022 15:56
Giantsquid - I am all for critical commentary on a given equity choice, but referencing your investment decision with Motley Fool is like referencing your MBA dissertation using the Daily Star or the Sun. Good luck with your investments. You’ll need it.
Mountainous - who was the broker report from? The broker report will presumably only cover the trading volume (flow??) that relates to their client base. I would be very surprised if retail trading is the largest driver of intra-day movement.
Understand now Mountainous. Not familiar with the term market flow. Is this your own term?
Regardless, I’m inclined to disagree. I most trading is carried out by algorithms, which are largely used by institutional traders, often rebalancing positions based on changes in economic and operating assumptions that underly them.
I largely have access to the same information as you. I tend to find it more helpful limiting my exposure to information on the web. Certainly opinions. Can’t go wrong using simple valuation models and some basic fundamental financial information. Happy to discuss.
RS - totally agree that the BB influences retail investor sentiment. But I don't think that in turn translates into market-moving action. Certainly not in the UK, where the investor base and method of investing is quite different from that of the US.
Institutional investors will be chopping and changing much less as Cineworld will probably make up a tiny portion of their portfolio (probably in the riskier bucket with a nice chance of some decent upside).