Member Info for mountainous

I visited ADVFN once and I haven’t returned since. The place is a complete cesspool, I remember not just the negativity but how unfriendly the place was.

I think it’s because it is much less regulated that LSE, here we have admins who can just strike anyone off if they don’t follow the rules. I don’t think ADVFN has the same.

The layout of the website is quite poor too from what I remember, seems like something that has emerged from the 2000s.

@FunInvestor, when you refer to the 10% dilution are you referring to the convertible bonds that CINE issued?

Because if so, then that dilution is yet to occur. The dilution would only take place when the bondholder decides to convert their bond into equity, and I believe they can’t do that until the price is at least above 146p (considering USD/GBP and the current rate).

Please correct me if I’m wrong.

Hello all,

I decided to calculate the total debt/assets ratio of CINE and then compared it to the total debt/assets ratio of other comparable companies in that sector. I used the figure for TOTAL liabilities and TOTAL assets so everything is accounted for.

CINE has a D/A ratio of 103.3%
Cineplex has a D/A ratio of 129.8%
AMC has a D/A ratio of 121.1%
Cinemark has a D/A ratio of 94.0%

The average D/A ratio of these companies in the theatrical exhibition industry is about 112.05%. This means CINE is leveraged less than average relative to their assets when compared to these similar companies. I may be extrapolating a bit, as I have only included 4 companies in the calculation, but the calculation includes companies within the same geographical regions that CINE operates in, and also includes 3 companies that are comparable in size to CINE (AMC is the largest, CINE is the 2nd largest and CNK is the 3rd largest).

Even if you add US$940m from the Cineplex judgment in the worst case that we have to pay the whole thing, CINE’s D/A ratio increases to 112.4%, remaining in line with the average.

There are other more financially literate individuals on this board, so perhaps they could take a look at this and let me know if it is actually a valid finding?

Thanks in advance.

Nice to see the community spirit in here.

Congratulations to you anewman, I wish you all the best for your future, that is a really solid degree you’ve got there.

Mooky should get on a news outlet and say ‘the sp is undervalued and it should be at £1’ tomorrow as a gift :)

Sometimes it’s good to switch off from here, this place has become a cesspit in recent days.

We just have to wait for CINE to bear fruit. Some are giving the date of September for it, let’s just wait and see.

Hope you’re enjoying your time in Holland!

Thank you @BlueBuxton, hope you’re keeping well :)

The idea that CINE is ‘sinking in debt’ is simply not true.

Yes, CINE is heavily leveraged. As all of you derampers have been told on many occasions most of that debt has come due to the acquisition of Regal. Regal is a highly strategic subsidiary that will see our revenue increase not only to 2019 levels, but beyond that.

If CINE was ‘drowning in debt’ then that would mean that the interest expense would be too large to service. That is not the case. We know that Q4 2021 was CASH FLOW POSITIVE. This means everything was paid and there was still money to be put aside. Q4 2021 achieved $2,067,228,086 and Q2 this year brought in $2,322,580,562.

All in my opinion.

Hello all, I used to hold BOWL last year and sold for a small profit. Now I’m thinking to get back in for the longer term.

This sp is almost golden considering the current state of affairs at this company, dividend is back in and the company is rock solid. Any knowledge as to why this sp is falling at this time?

I would not be surprised to see CINE not only reach 120p, but right back up to 380p and plus.

There was a reason why the LTIP states that 380p is the threshold for getting the full bonus for Mooky, they wouldn’t set an unachievable figure.

With Regal in the mix CINE is a money printer now, there is no question about it. All these derampers love talking about D4E and debt and all sorts but notice how none of them mention anything about the company’s performance specifically. I have not seen one deramper come here and say ‘CINE isn’t making good money’ or words to that effect. It is an indisputable fact that CINE is raking in the dough now especially with Regal.

Plus, we don’t know what the financial condition of Vue was prior to pandemic and during the pandemic. They’re a privately held company, so they are under no obligation to release financial info like CINE is.

Could have been the case that they were in a worse financial position than CINE was prior to pandemic, and as they couldn’t do a rights issue during the pandemic they were really stuck, hence now they have taken this decision.

At CINE, we have the benefit of Mooky being the largest shareholder. If anything happens to us, it happens to him as well. Debt-for-equity swap will not only wipeout us, but will wipeout himself and his family fortunes too.

As Mooky said ‘we are in this together’ lol

@Fun, I did use the word ‘may’.

I do agree that it is possible to make an educated guess into how CINE is doing based on the box office, so I agree with your statement there.

The main premise of my post was that CINE should do a better job of communicating with shareholders if they want to attract new investment.

Good morning @Bonkers, in my own view it is not ideal to have very little to no information about the company’s performance when the sp is getting decimated as it is. That is not how you attract investors.

Normally, an IR department is aware of the price movement and release some sort of announcement or trading update to ease nerves.

The simple fact is that there is nothing stopping the company from releasing an RNS telling us how we’ve performed. I am supposing that there is a decent reason why Mooky and the company are being so silent, it may be to strengthen their hand in out of court settlements, but as a shareholder I would really like to know how the company is doing.

You have individuals such as @Ianharding who believe that Mooky is waiting to make a huge purchase of CINE stock and when that is undertaken, we will see a more proactive and transparent IR department. It’s all a guessing game, and that causes uncertainty. For now, we just have to wait…

In my opinion, CINE is waiting for the dissenting talks to finalise and may already have a trading update ready to publish alongside the RNS, so they will do a bulk RNS.

I say ‘may’ with the trading update because CINE might decide that it’s worth keeping all of that info until the interim results in September. Sure feels like a long wait, I hope it’s worth it.

In my view, CINE must be busy with something to delay the release of the results like that.

I will leave to open to interpretation. Maybe it could be the dissenting payment and RCF negotiations, maybe it could be something else…

@HNS, agreed.

Maybe it’s an old photo?

@KahnBaron, institutional investors have access to that exact same article and I don’t see them selling…

Must stress ‘in my opinion’.

Dissenting shareholders must be getting itchy by this point, as are we shareholders who have been waiting for an RNS for such a long period of time. Tomorrow marks 11 days past the deadline for both the RCF and dissenting payment.

Either talks will be successful or they’ll fall through this week. In either event, CINE will be ok imo, if the talks are successful CINE gets to hold the $96m for now, if they fall through, then CINE needs to pay it. Remember the money is in escrow anyway, so CINE have the money ready to dispense.

Based on the reply from IR and my own judgement, I presume that CINE is now seeking an agreement of some sort to allow them to use the $96m instead of it being in escrow, hence why CINE is suppressing the payout.

Let’s see what happens, you never know what’s around the corner.

We must also remember that every day that this court appeal is active, we are paying for lawyers, very expensive lawyers. This is the case on both sides.

I don’t know how much Cineplex want to spite Cineworld, but supposedly Mooky and Ellis are not even on speaking terms anymore. I think the two need to put their differences aside, get some sort of settlement and move forward. I wouldn’t be bothered still acquiring Cineplex, perhaps just put the completion date somewhere in the far future (I’d say probably 2025+) where we can actually afford it.

Jtan- good morning. I just wanted to say that the market in fact does not agree with the proposition that Cineplex is likely to get the money. Take a look at Cineplex’s share price and market cap, neither of them are indicative of a company that is about to get CAD$1.2bn into their pocket.

Many legal scholars have given low probabilities for the chance of the original ruling being upheld. If it is upheld, then it creates new precedent in corporate and commercial law, as there has never been a single company that has won a case like that on the basis of lost synergies to the best of our understanding.

Ahhh I see @RS, indeed @AllKap was correct in that sense.

Apologies on my part.