Perspective of today24 Nov 2021 17:43
Good evening all, today has been a very interesting day indeed.
I won’t make a long post, don’t fret. I think the information that has been fed through from IR via Sammy was just the thing we needed. Here are some key highlights:
‘the decline in share price is a function of broader sector pressure vs anything CINE specific’. CINE has effectively told us today that nothing sinister is happening on the inside. Notice the language of ‘anything CINE specific’. Imo if we had anything bad coming (negative court case, rights issue, bankruptcy etc) then there is no chance in hell that CINE would have phrased it the way that they did today.
‘Cine's performance is not out of sync with peers’. Very plain and simple, everyone is the industry is going down in price. Cinemark is down even further. Similar to the every sector in the stock market, stocks move as a group. Sector rotations happen where money moves from one sector to the other. Let’s wait for ours, it will for sure come imo.
‘ The vast majority of CINE trading over the last week has been low touch - i.e. algorithmic selling (vs active sellers)’ this imo is one of the best pieces of news out of the entire thing. Remember that what Hedge Funds need is retail to sell off. This is confirmation that it is not happening and that investors like me and you are not selling anything, because we don’t have access to all of these complex algorithms.
In essence, the price movement is quite normal and in line with the industry. Nothing sinister is cooking inside, and retail is not selling off. CINE have effectively told us today that the dip is a buying opportunity imo, the message they’ve sent is a reassurance and was very positive imo. I’m glad I’ve topped up and I’m sure I’ll be even more glad come a few weeks and months.
All imo. Tomorrow is another day, on we push with our investments :)