What is going on? An explanation.30 Nov 2021 17:34
Good evening all, I am currently sat at a large loss, just like the majority of us here. The atmosphere in this bb is quite negative today. I’d like to provide my perspective on what I think is going on.
I wrote back in July when we had a sustained drop like this that it was retail investors that were driving the drop. CINE themselves confirmed this. Fast forward to today and we were told last week that Cineworld’s stock flow is quote ‘dominated by retail investors’. I will remind you that the shares that every single one of us are holding right now are heavily sought after.
It is clear that private and retail investors are selling off, and the hedge funds are able to keep this down as we have seen in the past.
Number 1, there is no leak of the court case verdict. The simple answer to put that theory to rest is that fact that CPX stock is crashing too.
Number 2, omicron is causing concerns in the market as a whole. Booking.com -4% today. Airbnb -4% today. Trivago -5% today. We were told by investor relations that the drop is NOTHING CINE SPECIFIC (in those exact words).
Simple as that. The extreme drop we’ve seen in the past couple of days is unsettling and it may cause concern, but nobody said the stock market was smooth sailing. Tomorrow, I think I will remove the CINE chart from my Home Screen and might just remove the app too. If you’re a LTH, then daily price movement should not concern you.
I will reiterate. CINE has sufficient funds to last another 6 months of lockdown closures. If we were to lockdown tomorrow, we would have enough money to last until May of next year.
Yes, it’s unsettling. Remember the facts and remember why you invested. Trading Update has shown that cinema is back and booming. Let’s wait and see how Spider-Man does.
All imo, have a good evening.