Summary of reasons behind Cine recovering back up...2 Sep 2022 09:14
Summary of reasons behind Cine recovering back up from rock bottom
A number of reasons to be honest, not just one, reading all the comments:
1-Oversold at sub 10p i.efrom 2p
2-Jhango the seller from 9p has exited
The key seller has gone.
3-Speculation current ongoing talks regarding Re-structure possibly progressing well in the background. No bankruptcy of company, but looking at ALL OPTIONS. Incl potential sale of Eastern europe business? De-leveraging. As per RNS
4-Suspension talk for days was fallacious comments by certain individuals with an agenda.. People have seen through the scaremongering. Dismissed.
5-Mooky and Family owners are defiant and clearly not going anywhere and NOT selling family 20% holdings. No selling means they are not bailing like some had suggested. RNS
6-Revenues expected to pick up from Nov
Cinema business IS expected to pick again. (Cine Plex business already reported their revenues up 400% from 2021 results in Aug-22).
7-Lower risk from 2p-4p.
Greater upside potential from 4p
8-Shorts all but 2.7% left only. Stock Buy-backs.
9-Market as a whole “over-reacted”ref WSJ article. 9p to 2p. Sp should never have dropped below 10p
11-Investors mopping up Cheap shares and potential to average their holdings, albeit with some risk attached.
12-Cine- Appeal Court date Sept22nd. A favourable outcome maybe worked out. Ref: Feb FT article: Potential for outside settlement on both sides) lower award amount or receive zero. Compromise maybe the key to receive and both parties can agree? Legal teams have to work together for benefit of both companies and sector industry survival.
13-New Cine investors come on-board, who have previously never held Cine, now hold Cine.
14-SP reacting to rises on both markets UK and the US.
15-Interims reporting - SEPT 22nd - good news?
As we progress into next week, more news will add to rise....
As it stands the we are c. 4.5p-5p
10-14p (maybe back) for LTH’s namely as main sellers JHANGO has dispersed!!
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