The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
No doubt we will have posters come and tell us, cinema will survive but Cineworld's existence in the old corp remains perilous with no certainty that any equity will remain for existing shareholders.
The new corp will come but there is no guarantee that existing shareholders will get anything etc etc. All of which we have read in the RNS releases. We acknowledge that but we are also aware that positive new stream like this will influence the decision making taking place behind the scenes.
“Streaming is an important part of a film’s distribution plan, but it does not replace theaters which remain primary in the film ecosystem. We learned there cannot be billion-dollar movies without movie theaters. Without billion-dollar movies there cannot be $200 million budgets. Films just are not as majestic or compelling if they have not opened in a movie theater,” the report concluded.
“Streamers will continue to piggyback off the aura and magic of a major theater release. The windows will be shorter (the one victory studios gained), but the all-important theatrical release will now sit at the apex of movie marketing for generations to come,” the report also said.
Nice.
Gentlemen we are bickering amongst one another and this is entirely pointless.
Let's agree to review the news stream and remain impartial.
What you miss out Hexam is that Wolf will happily converse along with the derampers but will then actively insult the rampers.
If you have a pessimistic belief, that is yours but when you repeatedly side with the derampers, it suggests you have an angle.
Not everyone is a cheerleader, there are however plenty that want to discuss the opportunity to see out a recovery (however small) and perhaps that is hopium but it gives them something to discuss and consider, even a class action suit if there are enough here who can congregate and come together at some point in the future (should that need to be perused).
Thanks for posting the news article, patientsbringsit.
Wolf, I have no interest in wasting my time attacking other posters. That doesn't mean I won't call out charlatans trying to push a narrative.
Spare us your altruistic motives and pity for others on this board.
We can all read the RNS stream from Cineworld which has repeatedly made it clear that a sale of assets or d4e will risk existing equity holders with nothing as they are at the bottom of the pile, we don't need that to be repeated on a constant basis. This is why this board has lost a lot of the good posters as the same old comments are posted in and out or attempt to waste their time refuting FUD from multiple alias posters.
The company incurred almost 70% of its current debt load through the acquisition of Regal in 2018/2019.
You say that debt vs potential value [which is still be calculated based on the box office recovery] will result in a haircut for creditors and again, this is clear from the RNS should that option be executed. What investors are holding onto is a restructuring plan that does not agree a 100% wipe out, rather a smaller slice of equity release for the creditors and then for Cineworld to refinance when the move to the newcorp and importantly want to know where PIs stand in regards to shares issued. Will they see their shares from the existing PLC move over? Will they be granted options? This is why they remain to see out the Restructuring Plan.
Wolf, nothing is certain. Forward statements have been shared but it entirely depends on the Restructuring Plan and what that reveals from either a sale or dependent on the amount of D4E, both get to be determined.
As someone who has stated they are nothing but a casual observer who has an interest in how the ch11 plays out, you seem far too consumed with what happens to those who have been invested for a long time and have already seen their investment reduce by 90% possibly more.
Until the plan comes forth, and beyond the forward statements, the choice for those to remain invested or trade is entirely theirs.
Haha there it is.
Translation from John: “I’m off (as I have to buy tomorrow to ramp)…”
Any takers that, John will be dumping his toxic Russian miner stocks and buying in tomorrow and using an alias to ramp?
Don’t think you have grasped how the dilution would work, JohnkNowsnoTHing.
The current SP and market cap would not be used as the basis of dilution, rather what assets remain, where debt level is at following D4E/restructure and PE multiplier against the forecasted figures for admissions, concessions and advertising revenue.
Then you would see the SP and market cap increase and a proposed dilution which would be a considerable improvement on the current SP.
Absolutely and they can be either negative or positive depending on the proposed restructure plan that no one has yet to see external to the committee group.
If there is equity greater than todays market cap after that D4E, that is a win for those with a low entry.
If that is a new convertible bond that matures 5 years down the line it would be a win win if we retain equity and the plc.
Nice find!
https://www.cineworldplc.com/en/investors/financial-calendar
No upcoming events.
They are in CH11. You have to await the Restructuring Plan.
It is frustrating for swing traders who want something to make 10%, but it will be the Plan or news stream of potential bidders that will move this.
Wouldn't pay attention. It is incredible desperate but not as desperate as his ramps over on Poly about "life changing money". Comical stuff.
@wolf, you are exposing your true narrative now.
Peak demographics of cinema has under 45s represent 80% of audiences.
Families will be more inclined to go out.
It has been stated before, a family ticket with a popcorn and drink deal comes in at £9/head which will likely include free parking.
As new movies go theatrical exclusive and adopt a 45 day+ window they won’t risk spoilers or chatter in the playground ruining the movie. They will go with their friends or as a family.
The cinema is also resilient to the weather unlike theme parks which are seasonal.
Anyway, these points have been discussed extensively before.
Yawn.
The same old tired argument.
Fact is studios need theatrical as Wall Street fell out of love with streaming.
Beyond Netflix, all studios are haemorrhaging losses in streaming and no longer chasing subscriptions at the detriment of revenue and profitability.
With more movies going theatrical exclusive, spoilers at risk, movies will make 80% of their take in the first 30 days. So even when movies have a reduced 45 day window, the majority of admissions is captured and March is a great example of movies back to back.
2023 has about 100 releases compared to 130 pre-pandemic.
It has also been stated, with more working from home, they are more reluctant to stay at home watching on a comical looking 60” TV in their tiny living room.
It is amusing reading the comments from nervous shorters pushing FUD.
The box office take will do the talking.
We have 1 more month for bids to come in and you can be sure rumours will surface and the share price will remain volatile.
LTHs are so down, they won’t sell for a loss. I imagine they will hold to the end and if there is nothing for them and Cineworld plc assets are sold or it is folded, there will be law firms lining up to represent them and claw something back.
Peak demographics, disposable income. Priced out of the property market will spend for an out of the home experience.
Family costs have been discussed before, too.
£9/head for a family of 4 with ticket and popcorn and free parking etc
Whilst we discuss, Creed III is premiering and it is tracking as the most lucrative opening of the Rocky franchise.
Disagree. Their feet are far from planted hence they expanded into theatrical.
MGM studios was acquired for their back catalogue, sure but it means they have a presence in the movie business and I believe as do other industry experts, they stand a good chance of being a legitimate bidder.
Time will tell.
Good piece here about the synergies and upsell strategy when Amazon and AMC were in talks.
Also notes WholeFoods was valued at $13.7bn following them acquiring them in 2017.
https://www.forbes.com/sites/enriquedans/2020/05/22/amazon-goes-to-themovies/
Completely at odds to their model but it is well established, Amazon bought WholeFoods. They were also in conversations around acquiring AMC.
Impossible to rule them out so vehemently.
They are a global player in commerce and services. Their investment into theatrical maybe peanuts but by the same virtue the $6bn to acquire Cineworld through cash, options and debt commitments is within the realm of possibility.