PAUL SCOTT comments - STOCKOPEDIA - CINE22 Aug 2022 10:22
My opinion - CINE took a long time to implode, but the balance sheet is ridiculously over-geared, so there was a big question mark over these shares even before the pandemic struck.
In the short-term this share price could be volatile, as some shorts may want to close before the share is suspended, to bank their profits. The trouble is, when companies actually go bust, short positions can take an eternity to actually be paid out in full. In the meantime, sometimes CFD/spread bet companies put them on 100% margin, so you end up with a load of capital tied up, sometimes for c.6 months, before they finally get marked to zero and paid out. Hence it does make sense to close a short position before the share is suspended.
As for longs - well there’s really no excuse. What on earth were you thinking?
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