RE: Mookyjo2 Sep 2020 08:35
Point 1 - There will be no 2nd lockdown as the Government want the economy up and running again as soon as possible. At a death rate of single figures and with the present number of new cases the NHS can cope. Any further measures will be by local lockdown.
Point 2 re debt. All companies have debt and companies use it to expand and grow. Check out Shell or BP or any other FTSE company. It is the serviceability of that debt that matters and Cineworld have obtained the necessary waivers and are funded and in the case of the USA waited right until virtually the eve of Tenet to reopen.
What you really should be focussing on is that
3 Institutions have recently increased stakes in Cineworld including Jangho.
Shorts are reducing and exiting. 3 did just that on the 28th to add to other recent reductions and given yesterdays manipulations I think several more are in the process of doing the same.
Tenet by the way is exceeding Box Office estimates in 40 countries already and the US and China are just starting to raise the curtains, whilst all the time further cinemas are getting the green light for reopening in the USA.
You must have missed it last night but AMC spiked as high as a 14% gain and ended up 9% due to news they are reopening a further 140 cinemas by the end of September to 70% of their estate. They are back at pre-covid share price levels.
Cineworld at this time already have 300 of 525 cinemas open in the USA open which represents about 60% of their estate and that is increasing by the day as Nevada, New Jersey, California start to green light reopening. So by the end of September I think you will find Cineworld will have comfortably surprassed that 70%, Btw they are open in all other countries that they have cinemas except Romania.
The best kept secret on the stock market is that Cineworld are only valued at 1/3 of their pre-Covid levels.
Now thats a bargain for a £4.4 Billion 2019 revenue generator.
Stop being a bulletin board wally and I wouldn't hang about too long with re-evaluating your position and posting style if I were you for Cineworld has to start to reflect true worth or the recent Paramount decrees ruling says it will get snapped up by a predator. Its low hanging fruit and far too cheap. You missed your 30p opportunity and are probably soon to miss your last chance at 60p and by the end of the week you'll be in your Jack Jones with any short position.
I think given positive cinema reopening developments in the USA which by the way is where 75% of our cinemas are it should be a good blue day with comfortably more buyers than sellers.
Sign In
Follow the stocks
