Good article to read to keep your heads screwed on straight20 Jul 2021 16:29
I see a lot of posts stating this stock is destined for takeoff, as well as being destined for doom, all of which seem to be based on cognitive bias, creating a narrative that best fits their positions. The truth is that CINE is in a tricky position now, with their recovery being pinned on a few factors; economies remaining open, more footfall through the doors from new movie releases, and the pandemic being controlled globally to prevent future lockdowns.
The next 6 months for CINE will be crucial for their recovery and this article presents the cold hard truths. CINE currently only have enough cash to survive until the end of 2021, with recovery only predicted to resume slowly in 2022 (that's IF they survive through 2021).
Given the current circumstance, cinemas opening and new blockbusters being released is looking good for CINE as it provides the much needed cash, but the risk is still present hence the share price is hovering around the 60p mark (same as last year). Having a good month will not solve their underlying issues.
I am optimistic that the pandemic will be controlled and this share will recover, but we cant lose our heads of the risk involved. Anyone stating that this is a certain win/lose need to calm down a bit and re-evaluate the facts. A forum filled with s**t and waffle is no good for anyone, where are the adults?
https://www.fitchratings.com/research/corporate-finance/fitch-places-cineworld-on-rating-watch-negative-withdraws-ratings-18-05-2021