RE: Let's Be Honest For A Bit20 Aug 2020 14:52
I don't think I'm disagreeing with you on this one Fun. The price could well end up going down to 19 p in the short term as some on here have suggested. Personally, I can't see that happening, but it's possible. Equally, I can see a scenario where it could quite quickly go to 100 p. For example, if over the next couple of weeks the Tenet box office sales look good, it would open the floodgates for other studios to release their film backlog. That would be some significant news that may drive the price up rapidly.
Another example is the September results. It's widely agreed that they are going to be s***. However, if they're s***, but significantly better than expected, we could see a big re-rate here. To quote our learned colleague Hosai, you do have to question why the price of this stock is so depressed when compared with AMC, a competitor who is in a very similar situation to Cineworld in terms of closures and debt level.