Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Remember, squeeze someone who owes you money and they might not owe it to you much longer.
Lenders/landlords NEED cine to stay afloat, ie equity not wiped out.
Property is cinema specific. Houses? Not in current market. Shops. Likewise. Some shopping centres under extreme stress.
Another cinema? Not likely until covid situation is clear. Hedge fund? Purchase without income in short term. Same situation for lenders/landlords.
So as a lender/creditor what would you do? Keep it going. Push things down the road as best case scenario. Debt? Extend maturity with no cpaital/interest in meantime. Lenders? Haircut, next best? Share of future profits to compensate. Good chance.
Outcome? Recovery play.
You're expressing what you want to happen....
The reality is that cine will be talking to serious people as to what it can do. This is not a surprise. We all knew it was happening.
Sky report simply states the obvious.
Creditors turning the screws? You mean screwing themselves?
16:35 last buy/sell settles the L2 order book. If not done, then 5 mins extensions until done.
And so it was. 32.4
Not so bad.
Can be either way. Typically means lot of activity to settle order book for the day.
Tends to follow the direct of the moment. Which was upwards.
Lot of activity to settle close price.
May get 2 extensions.
Cheap labour rumours didn't cause this particular reputational risk. Probably.
So, one would assume something else.
Fraud is a possibility. Or BoD playing with the SP.
No one knows. But ditching a company is like putting a barge pole and more between you and them.
Do sometimes wonder if any big players try exploiting shorters. What I mean is lend to them and buy at the same time as they drop the price for you when they sell.
*increase a holding
It may also depend on who you borrow those shares from. They may make it conditional on a low SP if they want to increase a holiday as cheaply as possible.
I suspect it's akin to the two new 0.5% shorters (7.43% back up to 8.43%) that arrived yesterday and the day before. Possibly the same was happening again today.
Naturally, they need to sell at the highest price to achieve the biggest margin for an eventual buy back. Best way to do this is sell on buys. This way you ensure that margin BUT also help keep the stock away from a recovery play SP wise. Too much recovery would, I agree, make those buy back margins even better, but also make an equity dilution more likely to assist one avenue for cine to use to move forward (beyond the usual waivers, RCF options obv.)
Any news as to why?
Unless there is a financial reason behind this, I'd guess it was reaction to thinking it had bottomed, so RIs jump to make a dead cat bounce.
They haven't clarified their suggestion of bankruptcy yet. Note that Cinemark has not bounced at all and their debt/cash burn is much more +ve then AMCs (plus Canada is doing better e Covid than the US)
I agreed with the shorters Tesla evaluation based on fundamentals.
BUT, as just posted, this was not the whole calculus.
Tesla has become viewed as the carbon-free future, and has become something of a magic stock with RIs, since we have no future with carbon, so non-carbon is the only future.
What will slowly start to change this (at least during the pandemic), and maybe, maybe has already started, is fundamentals-based pricing is coming back to the fore, primarily since the RI spike has largely been fomo based (cf experience of quick SP rises in past crises). But now, we have a more prolonged crisis, waves, and the pandemic is still here, alive and well.
Up to June/July, RIs viewed the future in too binary a fashion. Post pandemic was still considered just round the corner and not involving ugly decisions and a lot of economic pain to get past. So fomo went loopy. Tesla shorters got burnt.
Now, Tesla is dropping car prices since one would think buyer numbers must drop in the current economic climate, just as they are pushing to seriously ramp-up production.
@calamari (aka GiantSquid?)
If this is just a casino, then I guess that's what retail investing has distorted the market into becoming.
Prepared to lose, though. Yep, a given. Invest and be prepared to write it off as you hit the buy button.
But, a lot of current market analysis is actually assessing the herd mentality of RIs.
Due to the sheer increase of this 'movement', it's become a significant factor in SP pricing. No wonder IBs/Banks/Hedge-Funds more traditional pricing models and monte carlo calls have lagged in the last 6-9 months.
Analysis of the clueless?
Seems a strange trading strategy for shorting.... Unless you think holders selling is clueless? Yet, it appears you have often argued the opposite, that they should...
Personally, I'd analyse the available facts, pandemic scenarios etc, etc.
Gut is often a lazy way to avoid the hard work of detailed analysis, and I confess, worryingly common
Analysis of the clueless.
Seems a strange trading strategy for shorting.... Unless you think holders selling is clueless? Yet, it appears you have often argued the opposite, that they should...
Personally, I'd analysis the available facts, pandemic scenarios etc, etc.
Gut is often a lazy way to avoid the hard work of detailed analysis, and I confess, worrying common.
Reminds me of Tesla's shorters not long ago.
Maybe, 'have to be' smarter. Entrepreneurs may have a more nuanced view....
But needing to be smarter doesn't increase one's IQ.
Ah, having denigrated gambling, you're now talking gambling odds.
So, your gut decisions are not analysis based then?
You guys seem to want to give the impression that the odds are only on one side: holders but not for shorters.
Mmmm. Unbalanced emphasis.
Guess that's how gamblers portray things...
@cloudstrife
Care to explain your obvious altruism?
I can only assume you're on the BB either out of boredom, or to tease, or to invest or, as I suggest, because that's just being altruistic.
If I wasn't born yesterday, I'd assume the most likely, in order, are: invest, tease, boredom, altruism.
If to invest, then are you seeking to short or buy even cheaper?