Member Info for RS2002

Great post.

"We have substantially increased our cash reserves, and improved our liquidity in other ways to extend our financial runway into 2021," says CEO Adam Aron. "Now we can focus solely on the all-important task of opening our theatres in the U.S., Europe and the Middle East safely and responsibly, allowing us once again to welcome moviegoers back to our big screens at AMC."

This has demonstrated to the market the survival of cinemas.

When I visited my Cineworld the staff member told me, that 70% of their footfall is usually UNLIMITED members. Imagine the smile on my face.

That is passive income coming in, irrespective of bums on seats.

Can you imagine just how many MILLIONS of UNLIMITED memberships will be enabled for the US when they open on 21 August?

Investors are seeing a 2-3 immediete bagger here and I hope they don't just exit at 100p and see this recovery back to 150p+

Rapid recovery of Cineworld is NOT NEW.

Least we forget:

22 May 2020 = 58p
26 May 2020 = 69p
27 May 2020 = 77p
28 May 2020 = 102p intra-day high

4 days saw the share price take off and this was BEFORE Cineworld opened any doors.

I have seen this behaviour before; we are going to see a rise towards the opening of the US Regal cinemas which make-up 73% of Cineworld's estate.

I believe, Johnny, many will look back at these prices. Not just Cineworld but across industries and realise what great buying opportunities were presented.

I hope many have diversified their portfolio and are in for some good gains for their education fund, retirement and family.

Wow that is a game changer in treatments before the imminent news we can expect concerning the Phase 3 trials completing and a vaccine being available before the close of the year.

This is a good quote from the article:

“It said a 54-year-old man who developed COVID-19 while being treated for rejection of a double lung transplant came off a ventilator within four days of treatment with RLF-100.

Similar results were subsequently seen in more than 15 patients treated under emergency use, the companies said.”

The RNS suitable covers why the takeover was stopped but it is not secret that saving BILLIONS is a benefit, even if you don’t go out looking for it.

This gives me and many investors comfort that Cineworld had the funds to support the $2.3bn (CAD) take over which means their liquidity position is good.

We should remember, Cineworld is the SECOND LARGEST cinema group in the world.

The Cineplex takeover was going to cement their role as the FIRST. That didn’t happen, no fault of Cineworld, but I believe, post coronavirus vaccine when global economies recover, Cineworld will be re-negotiating the deal with Cineplex who will be desperate to sell given their dire situation.

This will then see Cineworld extend their territory exposure to Canada and see them take FIRST in the largest cinema group in the world.

There is so much value to Cineworld beyond their immediate 2-3 bagger gain at this price.

Fortunately, from the LEGAL RNS, Cineworld make the position clear and gave a very comforting statement for investors.

Cineworld will have to pay Cineplex £28m because of the termination which Cineplex caused, breaching their terms.

That said, it is better to pay £28m than billions for an overvalued company that is only worth a quarter of its value now.

From RNS:
In any event, Cineworld believes that Cineplex's claim, if successful, would be limited to its costs and expenses incurred in relation to the Acquisition and would not be assessed by reference to the consideration that was payable under the Acquisition.

Cineworld terminated the Arrangement Agreement because Cineplex breached a number of its covenants under the Arrangement Agreement. Cineplex did not remedy these breaches when given the opportunity to do so. Cineworld is entitled to recover from Cineplex all damages and losses that it has suffered as a result of Cineplex's breaches and the Acquisition not proceeding, including its financing costs, advisory fees and other costs incurred. Cineworld intends to counter-claim against Cineplex for these damages and losses.

Source: https://otp.tools.investis.com/clients/uk/cineworldplc1/rns/regulatory-story.aspx?cid=655&newsid=1400682

The best thing that happen was Canadian Group Cineplex breaching their debt covenants and breaking the terms of the takeover.

It ended up SAVING Cineworld $2.3 BILLION DOLLARS.

From their contract:
"Should the Acquisition Agreement be terminated under certain circumstances. The Major Shareholder has also agreed to pay an additional breakfee of up to £28.3million"

To buy Cineplex at 4 x the premium when their valued reduced to just a quarter - would have been a terrible deal.

So Cineworld have to pay £28million - that is paltry compared to over-paying £1bn for something worth £250m.

If I found an extra $2.3 BILLION dollars I would be elated as it meant I could weather the storm for a longer time should it be needed.

I have purchased property in the past and it can take the best part of 6 months to complete a simple transaction.

Do you think the law suit will resolve before the vaccine and global recovery is underway? I don’t.

Thanks for highlighting that positive news!

At these prices, Cineworld is a great long term hold.

Monday to Wednesday.

Tenet comes out on a Wednesday so a great time for patrons to visit cinema and make for a great outing at a government subsidised price.

The government want to see increased footfall. Cinema is no exception particularly as it is granted the 20% to 5% VAT reduction to stimulate ticket sales.

Source: http://news.sky.com/story/eat-out-to-help-out-what-is-it-and-which-restaurants-are-taking-part-12040914

The race to space, what a great comparison.

I can see a Tom Hanks movie in the making here...

Totally agree, Jack.

The downstream implication of cinemas not opening is too devastating to a multi billion dollar industry.

Our Secretary of State for Culture, Media and Sport, Oliver Dowden granted approval for filming to resume in the U.K. as the studios know what side their bread is buttered.

Theatrical release is too big a revenue stream to do away with.

It will compliment VoD, cable and blue ray release.

Bodes well for Cineworld maintaining their re-opening. All but 3 states in the US are denying movie theatres from opening (source: Investroid). Granted, they are big states, ~80% of Regal cinemas re-opening is something to look forward to.

Like you and most of the world, pessimism will be rife. I’m reading more about what this means in the global race and the pressure that will be applied. Let’s face it, all countries are seeing this as a moment to flex their presence to the international world.

Dr Fauci has said that the US should have a "safe and effective" vaccine by the end of this year.
"I do not believe that there will be vaccines so far ahead of us that we will have to depend on other countries to get us vaccines," he told US lawmakers.

Russia’s announcement has already given Operation Warpseed more motivation to deliver a domestic result.

Reuters, citing anonymous sources, said Russia's first potential vaccine would be approved by regulators this month.

Regardless who is willing to take it by poll taking or asking for anecdotal replies from bulletin board posters (all with a different agenda, myself no different) the market is going to read this and incorporate this in the parameters that will support a global recovery.

Are these prices for Cineworld a once in a lifetime opportunity before the next bull rally?

Source: https://www.bbc.com/news/world-europe-53621708

If a parent can leave their child at school for 6 hours a day, they certainly won’t object to a controlled environment like a cinema where staggered seating is afforded (not the case for classrooms when they resume) which is frequently cleaned.

Run time on average for a children’s movie 90mins.

Masks worn now which is great and children entertained and fed at a close by restaurant.

Staycation activities are going to excel during the current travel quarantine rules.

Cineworld is going to love the footfall from that.

@Hosai, would it but be the same as a restaurant? After all you would enter but once sat down to eat you would remove the mask?

Cinema screen was about 30-40% occupied.Entrance and exit separated with staff guiding customers. Spoke with the member of staff who said they are seeing really positive feedback and importantly a lot of Unlimited customers.

The movie, Unhinged?

It was the perfect movie to premier with.

Classic cat and mouse, kept me on the edge of my seat with a few jumps thrown in for good measure.

It has completely restored my faith in the theatrical experience.

I have a good setup at home but to enjoy the movie with friends, irreplaceable and I’m confident word will travel fast on social media that Cineworld is back in business in England.

Smart idea to bed the customers in before the blockbuster that is Tenet.

I’m looking to book Inception in IMAX prior though.

*Safer environment

Perhaps the fact that cinemas offer STATIC seating which can be controlled by allocation.

Casinos permit free roaming. A lot of touch points and high traffic that DOESN’T permit cleaning after an allocated showing or attendance.

In short, cinemas are a much dagger environment to comply with social distancing, cleanliness and big enough to allow 30-50% occupancy whilst giving enough room so not to infringe on your fellow patrons.

I like to compare cinemas with workplace offices or even schools where allocated seating and desks exists.

Other leisure activities don’t allow such.

We should be thankful that increased footfall will head to a cinema as a result of casinos and other restricted leisure activities.

Couple this with the VAT reduction the drive for Eat Out to Help Out, it’s a great time to be invested in cinema.

Wouldn’t you agree?

We have three further weeks to see numbers reduce.

Things to keep in mind is that only 3 staes out of 50 have mandated cinemas remain shut down.

Florida has opened DIsney World and is against a lock down

- California (87 = 15.85%)
- North Carolina ( 18 = 3.28%)
- Maryland (13 = 2.37)

So:
- (118 / 549) .... 22% Regal currently mandated by govenors to remain closed.
- (431 / 549)..... 78% Regal permitted by governors to open.

The governments have made it clear, they are NOT going to do national lockdowns anymore.

This bodes well for cineams and the economy generally.