Double your money in 4 weeks with CINE ?28 Aug 2020 10:06
Double your money in 4 weeks with CINE ? I think it is possible for the following reasons
1. Cinema can never be replicated at home. Cinema has survived TV, VCR, DVD and streaming. The cinema experience just gets better and better.
2. Cinemas are profitable at less than 20% occupancy, unlike say airlines. This means social distancing is possible in cinemas, as these are huge spaces, people don’t move once seated, facing same direction.
3. Ample liquidity till Dec 2021. No need for an equity raise. Mooky (CEO) and family own nearly 30%, so equity raise even more unlikely.
4. Recent Mooky (CEO) interviews are very, very positive on future of cinema, and in particular, Cineworld. Says ‘big news’ after weekend
Most recent interview a only few hours ago:
https://www.cnbc.com/video/2020/08/27/we-had-many-shows-sold-out-under-the-restrictions-cineworld-ceo.html
5. Tenet screens from tomorrow 26th August. A ‘movie event’ Getting fantastic reviews. Will kickstart the cinema industry.
6. More US cinemas remain on track to open this Friday 28th August.
7. US Covid cases and deaths are now dropping fast.
8. Emerging news from US on NY and California (25% of US Cineworld estate) concerning re-opening.
9. Vaccine Phase 3 data is coming from multiple promising vaccines. Many treatments for Covid being developed or approved. Likelihood of second lockdown very remote.
10. US stimulus news due in September. Markets will surge on this.
11. Cine has ‘bounceability. - has bounced to 100p twice since March. Peel Hunt reiterates target of 180p
Previous movement in just FOUR (4) trading days
22 May 2020 = 58p
26 May 2020 = 69p
27 May 2020 = 77p
28 May 2020 = 102p intra-day high
12. 2021 looks to be the best year ever for cinema
13. Plenty slated out of the Marvel studios to keep the tills ringing between now and 2022.
https://www.gamesradar.com/uk/marvel-phase-4-leak-release-dates-new-mcu-movies-lineup/
14. Jangho, backed by a multi-trillion Chinese sovereign wealth fund, has been building a stake last few weeks. Now over 5%. Jangho is known for making foreign takeovers. AMC cinemas in the USA already have a majority Chinese shareholder.
15. Paramount ruling last in the few weeks now allows for US film studios to buy cinema chains. This law change in US was done after lobbying by US film studios.
16. 9.16% of CINE stock is shorted.... 127m shares need buying back soon. There will be margin calls on loss making shorts. But free shares are scarce .... Jangho is still stake building. This will inevitably lead to a HUGE short squeeze ...it's a snowball effect. Sp can easily multibag. This short squeeze will happen immediately if there is a takover approach.
17. There has been a flurry of positive media reports and broker notes. This is likely to increase over coming weeks with Tenet and full US cinema reopenings.
https://www.sharecast.com/news/broker-recommendations/cineworld-shares-set-for-hard-boun
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