Member Info for RS2002

*void period

Couldn’t agree more.

This poster isn’t commenting out of an altruistic notion for the better good of investors. He or she has a very clear agenda. To talk down the company, instil fear and encourage private investors to either short or sell at a loss.

I have witness a thread just yesterday, where an apology was issued to this poster thanking them. For what? That Q2 was a good period? That covid has wreaked havoc across the entire hospitality and leisure industry?

These are established facts. Of course there is uncertainty, but as one poster commented. Do you g onto a bungee jump enthusiasts BB and frequently tell the fellow commentators, that their cord could snap at any moment? Now imagine you did this 40 times a day, added no value to the discussion on recovery and the joy of the activity and were solely single sided? You would naturally arise suspicion this individual is nothing more than a troll or a disruptive individual who has an agenda.

Make your own mind up if you invest. Covid is not exclusively singling our Cineworld and yes there are challenges but this is appropriately reflected in the share price at 43p, and the reason it isn’t 225p (Jan 2020).

Investors don’t need to have certain elements from the report cherry picked and frequently regurgitated, to paint a negative narrative. The following presentation affords the overall mitigation and numeration status.

https://www.cineworldplc.com/sites/cineworld-plc/files/reports-presentation/2020/interim-results-presentation-2020.PDF

Investors are well aware there is a liquidity challenge however they have also established that amongst the mitigation activities that continue to progress, the BOD have stated

1. There are sufficient funds to OPERATE as-is and perform as-is to see them exhaust funding to September 2021.

2. A rights issue or dilution is an option but in my opinion, the sensible time to look at that is March 2021, this gives the BOD 6 months to then forecast ahead based on projections, assess the market for covid recovery status (read vaccine and general consumer confidence) and take a decision.

I see two questions an investor needs to ask themselves:

1. What is my risk appetite?
2. What do I believe will be the state of play concerning covid and marker recovery in March 2021 (6 months from here)

My personal take, given the progress we are witnessing with the vaccine and the huge catalogue of movies set for 2021, I see 2021 to be a very lucrative year for global cinema. The case study for China is a valid one. Their economy has indeed seen a V shape recovery and box office fully recovered to pre-covid levels. I believe this is the reason, savvy Chinese investors are taking a stake and why many will remain invested.

The big milestones to watch for now?

1. NY reopening
2. Debt covenant waivers agreed

The BOD needs to keep investors updated at the earliest.

Good luck to all investors and above all, DYOR.

The synergy is nothing new, remember.

"As part of the partnership, Disney has become the first brand to take over Cineworld’s in-foyer rotundas, a space previously only reserved for studios and in-house messaging."

I can already envisage the concessions after the latest MCU outing.

"Dad, can I have a Captain America action figure, too?"

Source: https://www.dcm.co.uk/news/disney-partners-with-cineworld-to-take-cinemagoers-to-star-wars-galaxys-edg

My personal preference/ideal situation would be for Cineworld to recover ground into Q1 2021 and for a takeover/further synergy with Disney to take place, there after. If it took plaec now, my fear would be a lowball offer.

Kuwait’s sovereign wealth fund is looking at taking a stake in Rolls Royce.

Relevance to Cineworld? Realising the long term value in a struggling company during this pandemic.

Source: https://news.sky.com/story/kuwaits-state-fund-in-talks-to-take-stake-in-struggling-rolls-royce-12081350

Now just imagine being as crass to come and advertise you bought in at 46p and looking at a 6 bagger.....

Read the presentation and make up your own mind if you want to invest. Consider the risk vs reward and where you see global cinema going into 2021 and importantly how Cineworld will perform.

Don't be led astray from rampers who are quoting "£2 by next week" or de-rampers who repeatedly come on to this BB, un-invested and attempt to talk the company and its share down so they can obtain a lower entry and day trade it.

Source: https://www.cineworldplc.com/sites/cineworld-plc/files/reports-presentation/2020/interim-results-presentation-2020.PDF

Good post and lenders are also aware that the current interest rates make it more lucrative to lend with their mark-up.
If a company has a good track record (like Cineworld) of passing earlier debt coveneants and in the case of December 2019, scoring 62% HIGHER at 3.4x rather than the required 5.5x ND/EBITDA ratio, lenders will appreciate that Cineworld is not the exclusively hit company in leisure because of Covid. Allowances will be afforded and this is why the BoD and investors remain optomistic that the H1 results are out, the bad news is reported and they now work on the roadmap to recovery with Q1 2021 as the next significant checkpoint imo.

Good luck to all investors.

Cineworld is not exclusively dependent on No Time to Die/007. This is one of the big blockbusters of the year following Tenet. This is about encouraging admissions for the balance of 2020.

It seems some have a selective memory; Cineworld made it clear that they have sufficent funds to perform as-is in operation through to September 2021. Ergo, passing November into Q1 2021 is where I believe the checkpoint should be taken to firm up finances.

I won't state dilution will or won't happen; it is certainly an option as outlined by the BoD but we need to appreciate that it is a decsion that won't be taken in haste and in my opinion, certainly not this side of Xmas.

Sensible words from the chancellor.

1. Live without fear
2. Encourage social and human interaction
3. Support the economy by keeping industries open

The government will monitor the data over the next few weeks and I suspect they will revise their statement. Hospital admissions and mortality rates just aren’t linear or remotely where they were in March.

Source: https://www.theguardian.com/politics/2020/sep/24/tory-lockdown-sceptics-praise-sunak-for-saying-uk-must-live-without-fear

Morning all and echo the good post from Crumpets. Bond is indeed confirmed and the MGM and affiliation brand marketing is in full swing.

Omega and Nokia have released new videos and advertising material to align to this November.

As others have citied, cinema will be one of the few activities in the U.K. open after 10pm. This won’t impact the U.S where we can expect to see LA and San Fran opening 7th October according to the latest update from the California Governor.

The H1 and board updates specifically called out a need to see these cities reopen before the end of October of their projections for improvement on admissions are to materialise.

I’m keeping an eye out for updates across the pond more than the U.K.

I see the conversation resurrecting March 2021. That gives them 6 months before the taps run dry. During this time, we can see a lot of development.

I’m not out ruling a rights issue, just saying it’s too early right now and that also matches the narrative from the BoD presentation, today.

I'd say

Won't go bankrupt (agree)
No need to raise equity (at the moment - can defer to March 2021 to assess)
Cinema will bounce back very soon imo (all dependent on the recovery for the global vaccine and consumer confidence)

As you can see that isn't a ramp but this can go either way.

It comes down to risk appetite and assessing the market; given we are so close to vaccine news, I remain bullish for the outlook into Q1 2021.

I would love to see NY re-open as well - it would make studios consider bringing forward some movies.
Something man analysts called out including the BOD in their recent H1 report was that big cities in the US, LA, SanFran NYC were not open and forced the studios hand. If they can open this side of Xmas, we could be in for a surprise to see some titles with their 2021 placeholder brought back to late 2020.

Great news and certainly within the 6-9 months (considered a ramp by the unhinged) timeframe.

I would say it's a fair assessment to state within 3-6 months those will complete. That would then afford Cineworld, 6-9 months to see admissions INCREASE, ride the very lucrative backlog catalogue of movies available for 2021 and importantly firm-up the cash flow and the balance sheet well ahead of September 2021.

Nice post, NoFear.

The savvy investor sees beyond the short term noise.

I’m not day trading but looking for long term recovery and growth in a sector like this.

It won’t happen overnight but given the liquidity of Cineworld ALLOWING it to sustain and OPERATE AS-IS (without all major US cities open), taking it to Sep 21, like the researchers for the big institutes, I believe 6 months from now, we will look back in astonishment at the entry prices that some of us either took or passed on.

Sufficient liquidity to keep them OPEN and performing as-is (read: No LA, NYC or San Fran) to Sep 21. This is why the share hasn’t dropped to your 30s target.

If it didn’t face an upward journey to recovery the share price would be 164p (Jan 20).

This will help Cineworld amongst the other schems such as pay as you grow