Member Info for giantsquid

Net debt is currently just under 10 times market cap - astonishing the share price is as high as it is - to say it's overvalued is an understatement.

Net debt (ex. lease liabilities) increased by $492.7m from $4,344.5m to $4,837.2m

There's no saying how low the share price could go - I don't see any way back for the company right now - even once the war is over, sanctions against Russia will remain for years to come so those companies with operations there will be feeling the pain for a very long time.

I won't be buying because the company is drowning in debt and I still think they're likely to lose the appeal - which will be the final nail in the coffin for them. Don't get me wrong, I think their cinemas are great and would be sorry to see them go - but it's a p*ss poor company to own shares in because it's badly run. Mooky has steered it into the ground and burdened it with debt in his quest to conquer the world. It's a mixture of greed, impatience and incompetence and it's left the company in a bad place with huge debt. 2023 doesn't seem that far away, but given all the company's debt woes, I'm not sure they can even survive that long. There's still a high risk of more substantial downside, especially if the appeal is lost - the price would tank on that news. For gamblers only, THAT would be the time to buy because it'd almost certainly go sub 20p, possibly sub 10p. My advice would be to get the appeal out of the way and see what's what before even thinking of buying in.

The cinema chain will be booted from the FTSE 250 in this month's reshuffle with its share price struggling to regain ground lost following the onset of the pandemic.

Matters have not been helped by an ongoing legal battle in Canada with rival Cineplex over a billion-pound merger deal that was derailed by Covid-19.

The company is reeling from a judgment from the Supreme Court of Justice in Ontario in favour of Cineplex, which if upheld on appeal could see Cineworld on the hook for hundreds of millions in damages.

Revenue is expected to have more than doubled last year. However, even if this proves true, the group is not predicted to return to profit until 2023.

Ticket sales are also not expected to fully recover to pre-pandemic levels, and given the seismic changes to the movie industry wrought by Covid-19, there will instead be interest in how much the company is willing to spend to attract audiences through new technology and luxury perks.

But this may prove difficult to execute given Cineworld is also facing a massive debt pile, which could grow even larger with legal bills piled on top.

https://www.thisismoney.co.uk/money/share-investing/article-10603909/Cineworld-set-exit-FTSE-250-Covid-pandemic-hit.html

And how much of that revenue is net profit? Because that's the only figure that matters if you're hoping for a buyer. As for stock, if the company goes into administration their food, 99.9% of it, would go to landfill or possibly to food banks because it's perishable and they'll be prohibited by law from selling it on. The only value is their freehold estate - unfortunately retail sites are difficult to sell and are fetching poor prices. It's not worth a lot that's for sure.

The brand is toxic, worthless to any buyer. Know how? Wtf?! Know how isn't worth anything you tool. Post office? Worthless other than the freehold property the business occupies, If it's leasehold it's worth nothing at all.

No, I'm providing facts you don't want to hear. Retail space is heavily discounted because nobody wants it, other than property developers who will take it at auction and knock it down for flats. Food stock is also worthless because it's perishable - literally worthless.

How many of those are leasehold? And how many freehold? Do you actually know? Leasehold are worth jack ****. Freehold shops aren't worth much either. Landlords can't find tenants for retail spaces and are having to almost give them away - free rent for a year and other incentives. And sellers can't sell - the retail property market has all but collapsed. Look in any town or city and you see row after row of vacant shops. Forget any idea their retail property portfolio is worth anything substantial - if the company goes into administration, buyers will snap up the sites at a knockdown price and convert them into flats, which is about the only thing you can do with them these days. Morrison's wont save McColls from administration. It's not a case of having a short position, it's just stating the bleeding obvious.

This is a absolutely going into administration, in my view. McColls own nothing of any real value, other than retail sites. If and when the company go under, those sites will be available to purchase from the administrators at a knockdown price. That's what any circling vultures will be waiting for (assuming there even are any). As for Morrison's, they can simply aquire sites of interest from the administrators and continue to run them as Morrison's stores - they don't need McColls in any way, shape or form. It's a dead duck imo.

Jesus wept. Given the situation I think shorters have little to worry about here.

I think some are ignoring the risks here - its a great company, or was, but the stock is now toxic if the FTSE/brokers want to disassociate themselves from the company.

Wrong. This is not about market cap. It's a refusal by FTSE and UK brokers to deal with these stocks - poly, Evraz, raven and others, due to their connections to Russia.

https://www.reuters.com/world/uk/ftse-deletes-russia-linked-uk-companies-indexes-amid-trading-crunch-2022-03-14/

"Being deleted from ftse indices on 21st March. Can poly still be bought and sold by us"

No. Not if UK brokers won't touch it. You'll have a hell of a job trading it.

"No tears when this more than doubles in an instant"

That's all very well, but how are you going to trade it if it gets thrown off the FTSE and UK brokers won't touch it? It's all kind of pointless isn't it?

"jog on"???

Is the article BS then? Or are you just in denial? Which one is it?

LONDON, March 14 (Reuters) - Index provider FTSE Russell said on Monday it would delete four UK-listed, Russia-focused companies including Roman Abramovich's Evraz (EVRE.L) after many brokers refused to trade their shares.

Evraz along with Polymetal International (POLYP.L), Petropavlovsk (POG.L)and Raven Property Group (RAV.L) would be deleted from all FTSE's indexes during the March review, it said in a statement.

https://www.reuters.com/world/uk/ftse-deletes-russia-linked-uk-companies-indexes-amid-trading-crunch-2022-03-14/

The UK is a small island surrounded by the sea, we have some of the strongest ocean currents in the world, particularly off Scotland, Wales and Northern Ireland. Tidal power is the only green energy that is absolutely 100% predictable and reliable - because unlike solar and wind, the tides are powered by the moon's gravity, a force that isn't influenced by the weather. Johnson needs to pull his finger out and recognise the opportunity - because it's huge. The other positive is tidal power brings much needed jobs to the coastal towns, which are some of the poorest and most deprived areas of the country. He talks about "levelling up" - well tidal power will do just that, bringing much needed jobs and prosperity to those areas of the country that most need it.

It's not Old news, it's on BBC breakfast news in todays headlines

UK imposes sanctions on Roman Abramovich over ‘clear’ links to Putin
https://www.theguardian.com/world/2022/mar/10/uk-imposes-sanctions-on-roman-abramovich-over-clear-links-to-putin