The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
And add up.
If you look closely at some of the details in the RNS, it appears that of 6.47% of CINE shares that Goldman Sachs are associated with, 0.44% are shares that they actually own, 3.28% are allocated to "Securities Lending", which presumably means short selling, and 2.75% are allocated to "Swap" and "CFD".
0.44% Shares Held
3.28% Securities Lending
2.75% Swaps / CFDs
0.44 + 3.28 + 2.75 = 6.47
Yep. That looks like bad news in terms of the short position unfortunately.
Goldman Sachs have just bought a s***load of shares?
In my opinion, this share price is depressed because of uncertainty regarding whether Cineworld can survive in the short term. If the results reassure investors that Cineworld has sufficient liquidity to survive until the situation improves (possibly next year with the way things are going), then I think this can potentially drive a significant increase in the share price.
A similar scenario played out when AMC released their results a few weeks ago. They were bad results, but the outlook was positive and reassuring and therefore the share price increased.
Sounds plausible. That would be good for the share price next week.
I've just added a further £20K to my holding here. I've now got £30K of shares. I'm expecting next weeks results to show a profit, albeit reduced. and also paint a positive outlook. I think this stock is currently cheap and in the post covid world, this company has good growth potential.
If it was possible to predict a share price by simple extrapolation of the 1 month chart I'd be a multi millionaire.
The new strategy involves closing some of the stores that are not performing well. In my opinion, they should continue to develop their online presence and look to expand further both domestically and internationally through retail partnerships.
Haven't really been following this one that closely, but cannot understand why NY hasn't already reopened their cinemas. Their daily new cases and deaths moving averages have been low and flat for months. They're in a far better position than many of the other states which have already re-opened. Would be great to see this state green light the re-opening of cinemas in the coming days.
Should be largely unaffected by coronavirus or a no deal brexit. Investors are probably put off by the lack of a dividend and the high level of debt. However, in my opinion, with all this talk of a potential takeover or openreach sell off circulating, it's well worth being invested here. I don't mind holding for a few years if necessary.
I was thinking about this the other day. Any funds that are tracking the FTSE 250 will be rebalanced and therefore shares in GOG would be sold. However, presumably, the company would be relegated from the FTSE 250 into another index such as the FTSE Small Cap. So any funds that are tracking the FTSE Small Cap would also rebalance and therefore buy GOG shares.
Is the demotion from the FTSE 250 likely to have any effect on the share price?
Honest post JV and you raise some good points. You may be right in the sense that this may be one for the long haul.
However, I will say this... the truth is that no one on here truly knows what is going to happen with the share price day to day or week to week. If any of us did, we’d be multi millionaires and probably wouldn’t be spending our time posting here. I still believe that there is a strong possibility of a rapid rise in the share price here. What’s going to happen when all that money in gold and the big tech bubble gets redeployed elsewhere? There may be a short and violent switch from save havens to beaten down stocks like CINE and if you’re not in, you miss out.
We’ve also got the results coming up at the end of this month. The release of results was very positive for the share price of our similarly placed competitor AMC, despite them bearing bad news. We have good reason to believe that the release of results may also be positive for Cineworld.
Haha. To be fair to depth, at least he has been consistent in his negativity. Shamus is like Jekyll and Hyde.
A lot of bad news circulating in the UK today, but we sometimes forget the US is Cineworld’s most important market. Good to see this further progress on Regal reopenings.
I think the plan was always that Tenet would run for a while and generate the revenue over a longer period of time than usual. On that basis, and given the key California and New York markets are not yet open, the initial US box office figures are pretty good and demonstrate that people are still happy to visit the cinema.
Apologies if this one has already been posted. This is an article from yesterday's Financial Times.
Financial Times, 6th September 2020
Blockbusters are back as ‘Tenet’ makes $20m US debut
Tenet, Christopher Nolan’s science fiction epic, made $20m in box-office sales in its debut weekend in the US, in an important test for cinemas looking to roll out blockbusters after the pandemic locked down Hollywood.
After months of shuttered theatres, Hollywood has hung its hopes of jump-starting business on the shoulders of Mr Nolan, a film-maker with a strong record of churning out box office hits, and one of the cinema’s most ardent defenders.
The director behind Inception and The Dark Knight trilogy has delivered in markets outside the US. The movie had made $126m in the rest of the world before its US debut.
In the US and Canada, the film drew about $20.2m over the Labor Day holiday weekend, according to ComScore. Tenet was not screened in two major markets, New York and California, where cinemas remained closed because of the pandemic.
The results were “on the low end of expectations”, said Jeff Bock, a longtime box office analyst for Exhibitor Relations.
Mr Bock expects this weekend’s results to inform the fate of cinemas for the rest of this year. “Warner Bros no doubt put Tenet in there as a guinea pig. It’s a very expensive guinea pig,” he said. “You have to give audiences a carrot that is worth chasing. And Tenet is that.”
He had predicted $30m and higher would be a strong opening for Tenet, and reaffirm Warner Bros’ plans to release its next blockbuster, Wonder Woman: 1984, in cinemas next month. With about $20m taken domestically, the fate of future blockbusters this year was less certain, he warned.
Rich Gelfond, chief executive of Imax, said the Tenet results were strong enough to warrant a Wonder Woman theatrical release this year.
“What [Tenet] was about was proving that people would go to the theatres in significant numbers. It definitely proved that,” said Mr Gelfond, pointing to strong results in China.
The results in Tenet’s first US weekend were “very strong in the context that a lot of North America still wasn’t open”, he added.
Paul Dergarabedian, senior analyst at ComScore, said the initial results for Tenet were “solid”.
“It’s going to be all about the long-term playability,” he said, predicting that the film would gain more traction as more cities opened in North America in the coming weeks.
Mr Nolan has long sought to preserve the cinema even as attendance has waned and streaming services have invaded. In March, as the pandemic took hold in the US, he wrote an impassioned defence of the cinema, calling it a “vital part of social life”.
“In uncertain times, there is no more comforting thought than that we’re all in this together, something the moviegoing experience has been reinforcing for generations,” he said.
I’m not gonna lie, I wouldn’t be entirely comfortable injecting a Russian government sponsored vaccine. Although in fairness, they probably stole the research for it from Oxford university anyway.
Keep your chin up pal. The initial US box office figures for Tenet should arrive next week. I reckon they will be decent given the performance in Europe.