RE: GS10 Mar 2020 18:58
Shares in Cineworld, one of the Stock Exchange's most shorted stocks, have fallen hard amid concerns that the coronavirus outbreak will put people off going to the cinema, according to analysts at Breakout Point.
However, there is another contributing factor for the plunge, they point out.
A little-known Hong Kong research firm called Bucephalus Research, which is run by British-born accountant Robert Medd, has raised concerns about Cineworld's accounting and its £1.6billion deal to buy Canada's Cineplex.
Bucephalus, which claims to have institutional investors and says it does not buy nor sell shares itself, said last month that the FTSE 250 group was 'like a horror show' because it was using creative accounting to obscure debt and said its deal to buy Cineplex could bankrupt the company.