Member Info for mountainous

Thanks for your reply Dragon9, whilst it is responsible from a investing perspective to evaluate the financial health of the company with the metrics you have just mentioned, it is indeed things such as the latest Bond trailer, marketing hype, and the amount of customers within the cinemas around us which change the financial health of our company, as they all lead to more revenue for us.

Thanks once again for your contributions, I am also hoping for a positive week ahead, and hopefully can make some good progression with the cineplex case as well. Have yourself a pleasant evening and week :-)

Dragon9, the reference to the positive working capital and the effect of the debt facility was in response to FunInvestor’s comments, apologies that this was not put in the second half of the post.

I wish to remind you that FunInvestor has stated that it was the $200m debt facility that brought us positive working capital, which was not correct as it was in an entirely different month. The CARES Act indeed may have assisted in achieving the positive working capital in June, but would not have had a direct impact on the working capital in the same way he/she is suggesting either.

FunInvestor, before I even read the remainder of your post, I would like to debunk your statement that I brought up the matter of the debt. In fact, I simply stated we were achieving positive working capital, and then it was indeed you who brought up that it was the $200m debt facility that supposedly brought us positive working capital. I explained that this debt facility came in on July, and thus has no direct effect on the working capital of the company in June.

Now, you have changed your excuse to the US CARES Act. Let’s also dissect this claim. Cineworld announced the US CARES tax refund on the Company Update dated 24th May. So we received this tax refund in May; once again this is not June where it would have had a material and direct impact on our working capital.

It is blatantly clear to see trading conditions are continuing to improve, and have improved since our reopening. The box office figures has been increasing in a relatively stable manner. The 67% figure I presented to you was in fact for the US Box Office, so let’s put aside that excuse as well.

We are simply having a debate following your response to the thread I started. If you wish to ‘Ciao’ and not properly defend your points, that is your prerogative.

Hope you have a good week ahead.

Nice to see FunInvestor’s associate has joined the conversation :)

With regard to the positive working capital, I would like to remind you that we had positive working capital in June, before the additional debt facility was announced at the end of July, so the additional debt facility has not been included in this positive working capital statement.

Consequently, your argument that it was additional debt that resulted in positive working capital in June is rendered null and void, due to the fact that there was no additional debt facility in June.

Moreover, your point regarding the inevitable increase in concessionary spending is also not factual. As a matter of fact, the report clarifies that this increase has been ‘driven by an increase in overall purchase frequency’, so I can confirm to you that the increase in concessionary spending isn’t simply attributable to more customers=more money. Rather, it is customers are spending more at the cinema in concessions.

In terms of FunInvestor’s comments, whilst it isn’t possible to verify whether we are currently meeting that 60% base case, I can tell you that there is a good chance we are. The reason why I think this is because around about the beginning of September, box office income reached approximately 67% of pre-COVID figures (this was following the release of Shang-Chi). Someone on this bb also noted this earlier on this month. With movies such as Bond coming out in the near future, I can only see this figure going higher and higher. So once again, your point suggesting that we have been way short of 60% isn’t entirely accurate.

Hope you both have had a fantastic weekend :-)

Absolutely, but your previous point regarding the usage of $170m from the $200m debt facility was incorrect.

In addition to that, you have also stated we are still ‘some way short of numbers that make is a profitable business’, which is also likely to be incorrect (I’m not Mooky so I cannot verify), however the fact we had positive working capital in June with a limited film slate and continuing restrictions bodes very well for the company, and makes your claim that we are still not in profitable condition an unlikely one.

Please feel free to correct me if I have made an error anywhere. Have a pleasant weekend.

Thanks for your response FunInvestor.

The money Cineworld is paying to dissenting shareholders was put aside quite a few months ago I remember hearing, so the $200m facility has not been used for this.

Having a look through our H1 results again and I’ve seen that we have increased our average weighted shares by about 100m from this time last year.

Can anyone inform me on what kind of effect this would have on the stock price reaching it’s pre-COVID levels? Of course, we are now quite diluted from before, but can we see a rise back to 400s?

Thanks in advance.

$200m additional debt facility was announced on 30th July, FunInvestor.

Currently having a look back at Cineworld’s H1 results, as I am making a plan to restructure my portfolio and wanted to double check the report before I increase my position further.

Big stand out point to me is that we had positive working capital back in June this year; note that this means that our earnings surpassed our liabilities for that period. This was around the time of the Fast and Furious release. Very fantastic to hear as we all know that the mount of debt that we have is quite significant. To see that the FF9 release has yielded us positive working capital is very reassuring, especially as we’ve had other great titles being released since then.

Also fantastic to see a 40% increase in avg ticket prices and a whopping 62% increase in concessionary spending in the UK, one area where we take home a large profit margin.

Capex also down about 70% from last year, and close to $500m cash in our back pockets, a figure that has likely gotten even bigger since. As I posted a few days ago, we also have some refurbishments going on around the estate, which shows that our financial position is strong imo.

Cineworld is currently about 25% of my portfolio, but I have no issue in increasing it more. We are in a good place as a company.

All imo, this is not financial advice. Hope you all have a fantastic Sunday.

Thank you HNS and Bombdog for your replies, I didn’t watch the first day of the proceedings so I was not aware Mooky was named in as a witness.

Will be interesting to see how things play out. Have a fantastic weekend.

Just a quick question, now that we’ve seen Cineplex’s CFO in, what is the likelihood of seeing Mooky or Nisan? I would assume it’s highly likely we’ll see Nisan at some point at least, seeing as he is the CFO of our company?

European Markets dropping slightly but CINE maintaining its rise. Very nice to see. Court back in session today, nice to see we are one day closer to the end of this.

Have a fantastic weekend all.

Isn’t it fantastic to see the derampers back again with their 50p sp theory.

Reality is that we are in active litigation, COVID is on the rise, lockdown on the cards etc, so sentiment isn’t positive at this time. If you’re in this share and expecting a rise from 60 to 180 in a matter of weeks, you’re in the wrong place.

I bought more at about 61.8 earlier, my confidence remains. Just like latpulldown has said, watch the proceedings and see for yourself and you form your own opinion. But to expect rises everyday is a bit unrealistic, we are going to keep bouncing around in the 60-70 range for a while. A good result from this court will likely allow us to break out from it.

From what I’ve seen in terms of the attendance at the cinemas, the refurbishments going on etc, I’m very confident that we are in a good place imo.

Patience is key, remember that the stock market is a tool to transfer money from the impatient to the patient…

They need to calm down. Their lawyer can barely defend their company in court and is admitting wrongdoing right before their very eyes.

I will provide a justification to back up my point, as that is something that cineplex shareholders aren’t doing. They were deferring payments saying that that is what any company would do in a pandemic. As many here have pointed out, there was no pandemic in January-middle March, so the actions Cineplex went on in terms of deferring payments etc was specifically to disadvantage us as acquirers. Cineworld said that Cineplex has breached it, and they are laying their case out for us to see.

Let’s see what happens, we were happy to buy cineplex when you didn’t run the company to the ground by deferring payments and trying to slip them under the rug for us to find later. Doesn’t sound like ‘buyer’s remorse’ to me…

If the judge says that cineplex breached the contract, it’s only fair that we get at least some of our counterclaim imo.

Cineplex dragged us into court, held back the price of our equity, has disadvantaged us as shareholders, and most importantly has disadvantaged cineworld itself with the legal fees and the time. We should be reimbursed in some way. For us, it will be the rise in the sp if we are successful, and for the company it should be the entirety (or at least a portion) of the counterclaim we are putting forward.

All imo.

This is my first time writing on this board, I’m much more invested in other stocks than IAG, it currently makes up about 4.8% of my portfolio.

However I, as well as many other investors judging by the sp movement, are quite concerned about the prospect of a Rights Issue. I have been on the fence quite a while with this share. I sold off over half of my investment back at 212p for a decent profit. Now currently sat at a 29% loss on the remainder. I don’t see a heck of a lot of optimism for this stock going into the winter months, but I don’t see the company going bankrupt due to the portfolio of airlines they have. It would be an embarrassment on the UK Gov if they let their flag carrier go bankrupt imo.

So my question is, what are people’s thoughts about the chances of a Rights Issue? Is it likely? And do you think this company has a good chance of rising in the future?

Apologies for the potentially generic question, thanks in advance.

Absolutely Danosaur, also a great thing that it is exclusive to cineworld only. This is something that puts us one step ahead in the UK market.

If we can get this in more areas, I think cineworld will completely dominate in the UK and other chains will struggle to gain ground. Odeon for instance have their luxe offering in quite a few places with the large electronic recliner seats, there’s one in my town in fact. On the other hand, I need to travel about an hour by train to get to my nearest 4DX.

If you make these great offerings available to people in their localities, you can really dominate in those areas. For example, my local cineworld is in dire need of a refurbishment, and just down the road there is ‘the light’ cinema where they have big recliner seats. If cineworld came and refurbished my nearest cineworld with some new seats and perhaps put 4DX or something of that sort in, I can foresee how the word would get around the city and cineworld would completely overtake the light in my region. I hope we can start to embark on the expansion plans that the company had pre-pandemic and hopefully bring this amazing technology to more areas. It will definitely be received well.

Just found out that Cineworld in Hull is currently undergoing a refurbishment and is installing 4DX inside.

If anything, this is a sign to me that we are out of the dark and the recovery is in full and total swing. Cineworld would not be embarking on new 4DX screens if we were tight on cash, and probably wouldn’t if we were still in negative working capital.

Most certainly planning to further increase my position. We are well on the right track.

All in my opinion.

LOL just hopped onto the share chat for Cineplex on yahoo for a look and what a complete joke. Quite a few people announcing they have sold their shares in the past 24 hours with no hesitation it would appear. One said that there is too much uncertainty ahead. One said that Cineplex has behaved exactly how a company would! LOL! Cineplex was about to get acquired and they were very deceptive, they hid things that no company should have hidden!

And then the comments that simply say ‘cineworld comments are weak!’, with no further explanations.

Nowhere near the same amount of confidence as we have in here imo.

Thanks PW, I hope to watch it tonight, but have work later on in the evening so won’t be able to watch it all.

Want to see for myself just how Cineplex and Cineworld are defending themselves. By the sounds of things, we have had a good start.