Illogical29 Sep 2022 22:18
Share prices are very difficult to predict. Humans naturally look for patterns or trends. It’s human nature to buy a rising share price, expecting it to continue. I’m as easily persuaded by this as anyone.
It seems crazy to buy shares in a company ‘protecting themselves from bankruptcy’, owing much more than it seems they can ever repay. However, all this information is public knowledge and factored into the sp. When you are warned of ‘significant dilution’ you aren’t about to put your pension pot or hard earned savings into such a risky gamble. However, this is where your money, in my opinion, is most likely to prosper. If you’re looking for the next best thing, lithium for electric cars, graphene, renewable energy it’s almost a certainty that you’ve missed the boat or are too late to the party. You need to be ahead of the game or in there before hand.
Unless you have a tip off from a minister about government policy in the next few weeks you need to take a chance on what might seem like a certain loss. This is Cineworld. The terms ‘bankruptcy’ and ‘significant dilution’ are frightening terms until you understand their true meaning. This is safe as any other share, in my opinion, but massively oversold. A risk averse person will wait to see it rise 25% tomorrow, similar on Monday then wait for a drop to buy. It rises again on Tuesday and before you know it, the price is 10-15p. If you buy then, you’ve possibly missed the boat.
Also, I could be wrong. It could be 1p at the end of tomorrow. Please don’t put the pension pot on this…….