SP Being kept down?25 Oct 2020 10:06
Hi all, imo the SP is being kept surpressed while negotiations continue, whenever good news arrives the SP rises, then sell orders appear and keep it pegged back, but if it still rises we get leaks (generally negative) on negotiations, speculation on films going to streaming / pvod, degrades etc etc, while some companys downgrading then buying cheap shares... for M0oky having a lower SP helps in negotiations as it probably rules out any RI / Placement as not enough revenue would be raised, and M0oky / large holders dont want dilution of any kind. With Cinema sites sold and leased back there is not much in terms of tangible assets to sell, so liquidating would not help lenders. Whats left? The lenders cant afford to simply write off billions in loans and they know Cineworld when fully up and running is a money making machine, so IMO the wavers will be agreed, debt will be re-financed and extra lending will be agreed that protects liquidity and ensures survival until the vaccine is rolled out and the blockbusters return... when wavers etc are signed the foot will come off the break and the SP will rise, the shorters at this point will probably get caught out.... but this is just imo.... anyway GLA and DYOR