Member Info for mountainous

Hello lpd, I understand it’s a buy from what you told me lol, I just wanted to know what an RNS like that would look like if someone sold instead of buy if that makes sense.

Hope that’s a bit clearer :)

Thank you sharefall and lpd for your informative responses

lpd- so the 7.809 to 8.25 is basically meaning that they have increased from 7.8% to 8.25% correct?

and how do we know that it is a buy? What would it say if it was a sell?

Thanks :)

The RNS says acquisition or disposal of voting rights, can someone please explain where they understood that Polaris bought shares? And does it mean they bought 8m shares or 8% of the outstanding shares?

Never dealt with an RNS like that, so would love an explanation please :))

Thanks in advance

antmoss - lol, if we can find a way to make electric rockets with just as much power and large enough batteries we can wave bye-bye to the likes of Bezos and Musk who are still using conventional fuel! Nothing can stop us :o)

I’m very interested to know why the explosive rise today.

Maybe shorts closing? Maybe a large institution has decided to capitalise on the massive undervaluation of this company? Maybe someone knows about a potential acquisition? Will be very interesting to see what unfolds, just as lpd said earlier this volume is not private investor volume at all…

After so many months in the red, I (as well as many others by the sounds of things) are finally seeing the green. So happy I averaged down from 90p to 77p now, one of the best decisions I’ve made.

Cineplex is down apparently, and we are flying high, I’m very optimistic for the future :)

Nevertheless, I keep dry powder on hand in case of anything, averaged down my NEX earlier today too.

Congrats to all! Welcome to all the newcomers as well who have been observing from the sidelines. Very excited to see the bb growing and growing, we’re going to need a larger rocket :D

well well well, what do we have here hmmmm?

Looks like the days of price suppression are coming to an end! Stay tuned, might donate a share or two to you later so you can buy some tissues!

My goodness me, another substantial rise :D

Quickly scooped by a few more shares at 74.9, no clue when we will see a pullback (if any at all) so best to buy now whilst I still can :)

All imo, let’s get 80p sp in this week hopefully

Good evening plumber95, cineworld was trading at 300p comfortably before they announced the cineplex acquisition. Now that cineplex is no longer happening, plus the cost saving measures, I personally think we are worth at least that 300p/share.

Of course, it’s quite a subjective thing.

Absolutely sharefall, 200p acquisition would be like buying Apple back when it was $10/share.

It is what it is, I don’t think any of us here hold so many shares to swing the decision so we can only watch and see what would unfold. Either way, at 200p I think you can expect to see me protesting outside of cineworld head offices at the price lol

Of course sharefall, if Mooky and Jangho go through with £3bn and if another large shareholder like Cinema City also approve then the deal is done. I would get a payout in the several thousands if we get acquired for 200p/share so I definitely can’t complain about that, but I would find it a big shame that Netflix (or anyone for that matter) scooped up what would be the literal deal of the century for dirt cheap like that imo.

My last post was an extension of my previous one. Cineplex EBITDA in 2019 was 407m, so you see the premium that cineworld is paying for there.

Responding to sharefall’s post and another small extension, I think if Netflix wants to acquire us they need to bring a very high offer forward. They’re worth $260bn. If they offer £3bn for this company and if it goes through I think it will be a smack in the face to every investor and every executive that has had their pay cut and have implemented so many cost-saving measures too. We are in line for a much better profit margin in the next 1-2 years, and we would be handing it to Netflix on a gold platter for peanuts in return.

When a company acquired another company, they pay a premium with the expectation of future growth.

For example, when Cineworld sought to acquire Cineplex for $2.8bn, cineplex was bringing in $2.8bn approximately every 2 years, so cineworld sought to acquire with the expectation that cineplex’s revenue would continue to grow YoY. That is why in the RNS regarding the acquisition cineworld wrote that that deal has an EBITDA multiple of 6.3x, they are paying a premium for expected growth.

Similarly here, we had an EBITDA of 1.46bn in 2019, so if we have an EBITDA multiple of about 6.3x just like what happened with cineplex, then we are seeing close to £10bn in the market value of the proposed acquisition.

Call me crazy, but if you want to acquire a company you need to pay a good premium on it, at the end of the day it’s a risk you take when you acquire a company…

Also with regard to the 3rd point, I have made a large error in saying they would pay £800m for the company. Of course not as they would pay a premium on the sp for it.

Apologies, I’m a bit sick at the moment so bear with me. At 200p sp, the value of the acquisition would be about £2.6bn, which as sharefall has pointed out equates to the same value just for Regal. I still believe that the price of 200p per share remains undervalued. Regal is 70% of the revenue, at 200p you are leaving out 30% of the remaining revenue income.

So unless if Netflix pay more than that (by a considerable amount imo) I still see it as a massively undervalued deal that the board wouldn’t take, and institutional investors wouldn’t look at favourably either unless if cineworld goes through some more big problems down the road again.

Small rectification, bombdog has informed me that the executives would get full bonus if an acquisition happens, so please take the first point out of consideration.

With that in mind, I’d also like to include that Mooky has a massive average price in his combined holding with his brother. They held shares at the time of the rights issue back in 2017, where we had a 600p sp approx, so the avg price is high even if they took the rights on their own holding as well.

To sell the company at this price would mean that Mooky would make a loss in his holding. What a big shame that would be. Imagine holding 30% of the company’s equity as an investment and you make a loss on it, that wouldn’t be good at all. After all the years that Mooky has held as well?

Hello sharefall, personally I don’t see it happening because:

1. Mooky has a bonus waiting for him at 180p and 360p approx, so unless if Netflix offers that I don’t think he will even bring it to a vote for shareholders. And I don’t see Netflix offering pre-covid price when we have added another c. 900m in debt since, so I don’t see the 2 sides compromising there.

2. Mooky loves being at the head of the company, and he is very good at it too imo. He has years and years of experience, as does his brother and the CFO. To sell to Netflix would mean that the executive team could get restructured, and I don’t think Mooky would want to run that risk at all. A lot of American companies have very money-hungry CEO’s and directors, and Mooky isn’t one of them. He genuinely cares for the business, and doesn’t use it for his own personal gain.

3. If Netflix purchase us now, they are getting the bargain of the century. That is £800m for a company that paid £2.4bn for just one segment of their business. I think any institutional investor with sense wouldn’t dare to allow that acquisition to go through. Once again, I don’t even think the board would allow the acquisition to even see the light of day, as they probably wouldn’t even allow a shareholder vote with how undervalued that deal is. It is robbery in broad daylight. Netflix would be laughing to the bank, they would make back the money they used to buy the entire company in just a year, considering we made approx £730m in profit in 2019 alone.

That is my 2 cents on the matter :)

Good evening ForeverNever, whilst every one of us LTH’s would get a nice payout from an acquisition by Netflix, there probably would be no chance I would vote in favour of it lol. My trading days would be quite boring not seeing CINE drag my portfolio either up or down drastically, and I’m really excited to see the dividend on this once we recover.

But hey ho, my couple of thousands of shares are only a drop in the ocean of the other 1.3bn shares out there, so my votes wouldn’t matter XD

I would much MUCH rather prefer if Netflix brought their product to cineworld without acquiring it. Our revenues would balloon, and so would our dividends.

I also don’t think Mooky will sell our company for anything less than 200p+ at the very least, if even that. He has a double bonus waiting for him at 360p approx, and his average price is probably higher than 200p as well, bearing in mind he had his shares before the rights issue back in 2017 when the sp was in the 600s.

So for me, I’d love to see our company on the open market and in my portfolio for years to come :-)

In terms of sp movement, I wouldn’t be surprised if we saw 80p this week.

We just really need to hope that we can keep the momentum going, I hope to buy some more shares tomorrow so I’ll be playing my part :D

Hope your daughter gets well soon Bonkers, all the best :)

Perhaps a small addition, but just saw in the unlimited newsletter that cineworld have a promotion going on where someone can win a years supply of popcorn. You need to buy a ticket to enter.

Usually promotions like this raise sales, so I’m sure that will help us too.