Afternoon Ladies and Gents. Great day today, the heat is coming back.
I think now it’s time to go to the basics here. The Brothers that run this business have a holding of 28%. This is not a 2 bit company on AIM. The big thing for me was extending the loan agreements to cover them with no cinemas opening until Jan 2021. Plenty of organisations would have diluted the market with more shares, not here. They have and will continue to do anything they can to make CINE profitable, as we have seen once again here. They know what the financial implications of a possible law suit here is and have taken the best decision for CINE, for them and for us as investors. They will do anything within there power to make this a booming company again.
Sam that’s a fair point re September. I guess that’s plenty of time for the SP to be around the 1.20 mark. Some people mentioning £2 + though. I just don’t see that on the way it was dropping to Feb this year. I could be wrong.
I never went into NRR, did you? I thought that would be flying now with shops opening. Maybe it will react more once we get a firm dates for bars and restaurant’s etc .
As I recall, this was not an agressive move on Cineplex by Cineworld, rather Cineplex were inviting bidders. Therefore, in light of the new world WRT the virus it is likely that Cineplex would be open to an offer below the original $34. As I've posted before, with Cineplex @ c$16, the market does not expect Cineworld to pay the full price.
Using Cinemark as a benchmark, it's price has dropped 50% from the time of the bid for Cineplex, so if Cineworld wasn't sniffing around the relative price of Cineplex now would be c$12. This imples that the current $16 includes a $4 for the bid attention. This might represent the price the market expects Cineworld to offer or perhaps a couple of bucks higher.
Much higher and the market might mark down Cineworld's price. But I think that if Cineworld proceeds it would be a good sign for shareholders in the longer term. The boys know their business.
Incdentally, unlike Regal which was run down, and needed CapEx, Cineplex theatres are up to high standards so little or no CapEx required.
It should be an interesting run up to the 29th. Although I haven't heard from the Canadian regulators so that could still stall the bid.
Exactly. I’m just being honest because I’ve chatted to people on here. He’s told us how much money he was up every few days and now gloated on his profit. Now he’s back saying 60s. He said he sold some last week but still posting positive stuff this week. Each to their own I guess.
Yeah they are full of sh*t. I bailed an hour ago as I was about to go into silly losses. Just no idea where this can go in the next few days and with the possible weekend sellers tomorrow. I still believe in Cineworld and plan to be back but not prepared to take that risk at the moment. Good luck everyone.