RE: POSITIVE - SUGGESTED READ9 Aug 2020 21:48
I got in last week. I find that there are quite a lot of derampers here.
The way i see it, the cinemas are shut and they are not spending on rent or in some venues, nothing more than rent as the operation is ceased. So, no revenue or profit, but apart from that, they are also spending nothing for operations unlike other companies or business sectors. So, if they can hold off for now and once cinemas reopen, there will be cash flow. I notice when the new movie is out, the seats will be full for the first two weeks then they will become quite empty. So, with Covid cautions, the cinema will only be able to occupy ar about 30-40% or may be more. But every movie up in the cinema will stay there for about a month or in some cases is more due to demand. So, the amount of audiance they get will be spread out during the full showing period of the movie instead of cramping within the first two weeks. So, they will still get the same or similar amount of profit and revenue once the cinemas are reopen.
I for one always go to cinema after two weeks of avoiding spoilers because they are always free in the morning time or after two weeks of release. This literally applies to every cinema. So, they will have similar revenue and profit to continue operation.
Debt and interest? Yes, just like any other business, they will have it and they are not alone in facing this problem. Since they are not alone, there will be schemes that will soften the blow. So I don't see why people are so negative about this share. I am invested in some other sectors which are a bit more risky. for example, I'm invested in IAG, but I feel like there are so much more negativity towards such a simple industry like this compared to an air-liner.
Correct me if I'm wrong, is this business sector (Cineworld) this complicated? I'm not so sure. hmmm,.....