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If cineworld is able to take the risk to have a 3 month trial of unlimited for people, what more do you need to see to know that the finances of this company are improving fast and thick?

Yes, we hope that people will stick around after the trial, but in reality if cineworld was tight on cash the last thing they would have thought is to give people a free 3 months of cinema.

Good morning and nice post lpd, hope you enjoy the film.

Ultimately, all of us LTH’s here know that this is going to pay off. Hedge Funds have clients to please, and shorting the second largest cinema chain in the world that has now drastically decreased it’s cash burn and has rapidly improving attendance and revenue figures (from what we’ve seen in person), it’s just a matter of time until the hedge funds get proven wrong. They can keep manipulating the price, but at the end of the day you can’t stop the company from progressing. I’m happily topping up and waiting for payday soon, I have no doubt seeing how well the attendance is picking up.

Have a great day all, hopefully we can close at a nice gain today.

smalltrader- the article captures the exact reality of the situation. We have movies on streaming that you can RENT (not even buy) for $30 and even still the revenue figures are an embarrassment.

Let’s face it, $30 to temporarily have access to a film is a total joke. This is probably the highest that a movie studio can charge to rent a film with the expectation of some people paying, and it’s still not yielding anything close to the revenue that the cinemas are bringing in.

So what’s next for the movie studios that want to continue streaming? Raise the rent price to $40 next time or something? Eventually the people who want to stream will give you the middle finger and then go to the cinema, especially when the cost is just 30%-40% of what you’re charging. The people pirating the films aren’t stopping as you can see from the day-to-date releases, so why not give your actors, directors, make-up artists etc the pay and the credit they deserve instead of allowing their work to run rampant on pirating websites for free. You can even secure yourself a nice profit if you keep the theatrical window for your movies, there’s a reason why it’s been around for so many years.

‘cinema is dead’ lol, joke of the century

Just finished watching Shang-Chi in 4DX, something I’d say about the dummy bookings is don’t believe what you see. I tried to book it online just to see how many people pre-booked and in the showing itself there were close to double the amount of people inside than the booking system was showing. Just goes to show that the majority of people book in person.

4DX was super, it was my first time and I can 100% confirm that I will be going again. Also nearly half the standard price with unlimited.

After seeing the technology that goes into 4DX and seeing it in action I’m shocked that there are people that think streaming is going to take over. Streaming doesn’t stand a chance with technology like that imo, combined with the fact that it’s unprofitable and prone to piracy as well.

We are invested in the right stock imo, 4DX is exclusive to cineworld and the availability of such a technology is a massive plus to us.

In terms of the film, a massive recommend from me, I thoroughly enjoyed it.

jedclampit- first and foremost cineworld doesn’t need to pay off all of the debt they have. It is perfectly fine to have some debt as long as they can cover their interest payments, which they are able to at the moment.

With regard to your comments about a rights issue, I wish to remind you that Mooky and other executives jointly own over 20% of the stock. To do a rights issue would massively disadvantage them and would result in massive losses. If we could get through one of the worst pandemics in modern history and a $3bn loss with no rights issue, I don’t think we’ll see a rights issue in the near future.

The derampers are back out again, 2 delayed films and now suddenly we’re headed for more debt, what a laughable display.

I loved the reply from Moneypit which explained that Sony has seen this as a positive and they scooped up the spare space. One man’s trash is another one’s treasure. Shang-Chi now out tomorrow and Bond is on the way.

Cruis1 what you have to realise is that it is not in the movie studios’ best interests to delay a film just 28 days ahead of release. Particularly with Bond, there is a lot of buzz that gets generated; to delay the film means you suppress that buzz. For that reason, I think we can confidently presume that Bond will NOT get delayed this soon to release, as long as there is no drastic change to the COVID situation. If it does, it would be unfortunate, but not the end of the world. The movie studio has more to lose than we do imo.

It’s unfortunate that these 2 good films have been delayed, however we must move forward and look to the future. From my perspective, the cinemas are actually busier than pre-covid, and I have seen this with my very own eyes. Q4 film slate is still very solid indeed, combine this with the cost-saving and the pent-up demand and we are still in with a very good chance for a bumper H2 earnings imo.

Very solid start for the month though, I think it sets the stage for us.

The line-up is solid, the only way is up realistically unless we have some other obstacle like a lockdown or cineplex.

Today’s performance is a nice start for us.

Thank you compoundinterest, very insightful words.

So at the moment, we have a large seller in the background offloading constantly?

I’ve been in this stock for about 6 months now and it’s been an interesting journey. The drop we saw a month or two back was very unjustified and the losses we saw were due to growth, which should be rewarded imo.

Directors are also buying shares up, which is a good sign also.

I only hold a couple thousand shares, and it makes up 1.7% of my portfolio, but I’m thinking to purchase a few more shares myself now that the price is low. I remember a few months ago when we saw an increase to 9p, that was exhilarating and I think it may happen again due to the fact that it’s a penny stock. Even if it doesn’t, I think for the long term this stock (and the company itself) is a profitable one.

What are people’s thoughts?

I’ve been in this stock for about 6 months now and it’s been an interesting journey. The drop we saw a month or two back was very unjustified and the losses we saw were due to growth, which should be rewarded imo.

Directors are also buying shares up, which is a good sign also.

I only hold a couple thousand shares, and it makes up 1.7% of my portfolio, but I’m thinking to purchase a few more shares myself now that the price is low. I remember a few months ago when we saw an increase to 9p, that was exhilarating and I think it may happen again due to the fact that it’s a penny stock. Even if it doesn’t, I think for the long term this stock (and the company itself) is a profitable one.

What are people’s thoughts?

FTSE beginning to lose a bit of steam, but CINE continuing to maintain it’s increase. Fingers crossed we don’t see any decline at the end of the day and we see the trend holding.

Good luck all, have a great day

So sorry Bonkers, I was replying to bullsbears.

Hi Bonkers, I don’t think we’re at 200+ films at the moment, but realistically it’s all about the money in my eyes. We have had amazing box office figures as smalltrader pointed out earlier, so that shows more people are going than before. That means more income for cineworld, which is one of the main goals.

So imo, it’s a case of how much money we’re bringing in, not the number of films.

Loved this post Bonkers, especially the bottom of the ocean part XD

Hi BC, can you please clarify where you got the £6bn debt figure for cineworld? I’m seeing £10.2bn on their total liabilities for cineworld and £15.79bn for TUI?

Ultimately, the movie studio’s top priority is to make profit (or at least break even) with their movies. Streaming makes it much more difficult to do that due to the emergence of piracy and password sharing.

Yes, Disney would love for Disney+ to work for them, but the reality is that the technology to pirate will only get stronger and better with technological advances. It’s money for the movie studios that is getting burned, and they realise that. Every single day to date release we’ve had has been accompanied with embarrassing revenue figures, hence why for many films Disney just released the figures once and once only. That would usually be shortly after the movie’s release to capture the good part. They don’t show you the rest because it is a total embarrassment. People pay once and that’s it, no further revenue is yielded, and that one payment is a payment for another 5 people who will likely be able to watch with a shared password.

Nobody likes to see money unnecessarily disappearing before their eyes; remember that movie studios have shareholders too, and they won’t be best impressed with losses on the movies that cost a lot to make. It’s like manufacturing a car and then selling that car at a price that doesn’t cover the cost to make it (therefore selling it at a loss).

Have a great bank holiday everyone :)

Just finished watching Candyman, the very first and probably the very last horror movie I will watch :D

The movie itself was put together well and had it’s fair share of suspense. Decently long queue at the ticket and snack counter, and my screen had 20+ people inside. I live up North, and 20+ is more than usual.

Imo, the cinema recovery in the UK is absolutely in full swing. In some movies, I’ve seen more people than we had before COVID. Combine that with the cost-saving the company has done and I think that we are in for a very good H2 2021.

Have a great weekend all :)

I think we will be heaving, I was hoping to go and see Candyman sometime during this weekend and the booking system is already showing the screens are quite busy.

Very nice chance for a revenue boost.

Also a very warm welcome to the new-comers, glad to see the community expanding.

Have a pleasant extended weekend all.

Personally, I’m quite impressed with the rise to 70, even though we have descended since then. It has renewed my belief that this stock can spring up at any moment.

At this time, I think there are 2 things that are restricting positive sentiment in CINE. 1; cineplex, even though it’s highly unlikely that we’ll be liable for the full c.$1.1B amount, the fact that it’s a possibility will concern any investor. Personally, I think I’ll take the risk and continue to top-up in the meantime. If we could survive a $3B loss last year, then cineplex getting the full amount (again, unlikely) shouldn’t be a major problem. I anticipate that if cineworld becomes liable to any extent, Mooky will hopefully explain that we have the capacity to pay and investor sentiment will shoot up. If we win our counter-claim, then it’s even better.

2; the current COVID situation, the US is now reporting the highest COVID figures for months due to Delta. Additionally, schools are about to open in less than 2 weeks in the UK. From what we saw last time, I think we can expect an increase in cases. Bear in mind that the majority of people going to school are unvaccinated, so we may have a bit of a situation. If we get another variant coming out, then we run the risk of our spectacular Q4 line up getting significantly delayed. We will just have to see how this goes, yes Boris says we need to get used to the new normal but if we have a massive variant and people are dying left right centre he will have to do something about it at one point. Fingers crossed no new surprises occur and we go through Q4 with no interruptions.

My estimate is once Cineplex is done in (hopefully) mid-October, and if the covid situation isn’t bad, then we will see this stock shoot up. Easily by the end of the year we will be in a much better place I think.

Let’s see what happens tomorrow, I think we are beginning to see the turning point :)

Got to love the optimism by BC on this bb