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As is the ROW for CINE. So they will still have some cash flow coming in. And the delay for US isn't months its only 2 weeks so the drop today is just a knee jerk reaction. Medium term this is still on course to hit £1.50-£2 as long as the pandemic does not get worse. US cases have plateaued around the 60k-70k daily rate so once this figure starts to go down then the sp will react positively. More importantly its not the whole of the US that is witnessing this surge in the second wave. A lot of states are stable so as long as they remain infection free then around 60-70% of cinemas in america will be open for business in mid-aug, Just need to wait this out and not panic. CINE are fully funded to the end of the year so there are no issues regarding further fund raises.
May even see a 3-5% rise today at this rate....
Sp seems to be regaing losses and rapidly too I hasten to add. May even finish in the blue today at this rate. Seems like the people who wanted to get out have now done so and its onwards and upwards once again. I am certain it will now go back to the daily 3-5% rises that was the norm a week ago.
The market is irrational but it cannot be irrational for too long. If all the financial indicators are positive then this will eventually be recognised via the mcap.
"As we look to the coming financial year, we anticipate making further progress, with increased consumer marketing investment planned. Revenues in the first quarter of FY20/21 are expected to be approximately 20% ahead of the same quarter a year ago reflecting continued strong demand for the Group's product ranges, particularly in our Grocery business. Consequently, we expect to exceed current expectations for FY20/21 Revenue and Trading profit despite incurring some additional operating costs in our supply chain. Our options for cash deployment and capital allocation will improve as a result of expected further Net debt reduction in FY20/21."
If the next trading update expected at the end of the month confirms growth of 20% then it will transform the sp. Will easily go over £1 and from there the skys the limit.
This is the main reason why the sp has gone down in the last 48 hours. The sp has risen considerably over the last few weeks hence people that have been in for a long time are now deciding that they would rather bank profits this time around. Fair enough but the fundamentals have not changed here. Compared to 6 years ago when sales and profits were falling and debt was increasing it is now the opposite.
Sales are increasing and have been for the last 11 quarters especially Mr Kiplings which alone has been phenomenal. Profits are at on all time high and debt is being reduced rapidly which means considerbly less interest to pay which means higher profits later on. Alongside this the pensions agreement that has just been signed means less funding will be required for the pension scheme which agains means more bottom line profit later.
The future here looks good. If people are going to get spooked by a 10% fall over 2 days when previously the sp has doubled in about 2 months then they need to sit back and do their research and make a decision on whetever the current sp is the correct value or if it will eventually correct itself to £2 which is achievable by the end of the year if not sooner.
retrace was to be expected. The sp can't keep rising everyday. Most of the people invested here including long timers are in profit so expect some to sell out or top slice. BUT the basic fundamentals have not changed. This is still going to go up in the medium term (1-3 months) and should be £2 by the end of the year.
Just had a quick check and the last 3 ratings done by Berenberg (CEY, PHP and AVON) have all hit their targets. The ratings were released in April so obviously this broker knows more than the common investor. It's the oldest merchant bank in the world. You don't last that long unless you are good at what you do. Plus the news today is excellent. 3 tests mean 3 times the revenue.
Just had a quick check and the last 3 ratings done by Berenberg (CEY, PHP and AVON) have all hit their targets. The ratings were released in April so obviously this broker knows more than the conman investor. It's the oldest merchant bank in the world. You don't last that long unless you are good at what you do. Plus the news today is excellent. 3 tests mean 3 times the revenue.
It's not start of production that will cause the sp to multibag but news of funding and that is not affected by the weather. As per the last rns funding should be secured soon. This can mean 2 days or 3 months but highly doubt it will take 7 months.
Even if the US market doesn't fully reopen. You have to remember that this second covid wave isn't affecting the whole of the US. Fair enough the places that have been affected are major markets but there even if half the cinemas open in america on 31/07 that is good enough. Couple that with the UK market which is definitely on course to open then the future doesn't look too bad. Tenet will cause demand to go up significantly from present levels and CINE will benefit from this. Imagine in August if an RNS is released saying they have had better footfall then expected or better yet if they have sold out x amount of shows. The sp is about as low as it can get. Just need to keep hold of nerves and wait this out.
Definitely can pass 20p when mining starts if what is stated on the DFS is even half true. The only thing stopping the sp from rising is news of funding and what kind of terms the bod agree to. If the terms are favourable then the skys the limit as far as the sp goes
because it is seriously undervalued. annual profits of around £130M and growing but mcap of only £700M. Do the maths lol
£100M mcap is 20p per share. I agree finance news will lead to a serious rerate but I cant see news coming this week. It will be at least 2 months before we get funding news. Will actually work out better as in a few weeks the anticipation of funding news alone will cause the sp to hit 5p+. Just a waiting game now
I would rather hope the debt is paid off instead of paying a dividend. I have never understood why companies pay out dividends while they have debts that requires tens of millions in interest each year. Its like buying a house on a buy to let mortgage while keeping £100k in the bank in a savings account paying 0.1% interest. For example look at the difference between SQZ and ENQ. Both are oil producers in the north sea. SQZ has half the production of ENQ but has a much greater mcap because it has no debt. While ENQ needs to produce x amount each year just to cover the interest, SQZ just needs to produce a fraction of x and they will make a healthy profit.
Just need to wait until 31/07. The fact is people are going back to the cinema. Anyone can look this up by jsut going on the Odeon website and seeing how many tickets have been sold for each show. Considering there are no new releases the footfall is excellent.
Some of the cinemas are now showing tstar wars v and near enough every show of that is almost half full. As are Bad Boys for Life and Batman Begins. Now imagine what would happen when Tenet and Mulan are released. Just need to wait another 2 weeks before the rerate begins. If the share price can go down so quick then it will go up just as fast.
According to stats, there were 22k covid cases and 351 deaths in USA today. That is an almost 60% decrease over the last 7 day average. If these figures improve over the next week or so then the sp will reflect this. People just need to remember that this is only a temporary situation we are in. It will be over one day.
The licence is a given and most likely factored into the current sp so even if announced tomorrow I can't see if affecting the price too much. What everyone is waiting for is news of funding. That is the difference between £15M and £150M mcap value.
We all know how good the economics are on this project. It is a tier 1 graphite mine with low capex. Once funding is announed then the sp should be around 15-20p if not more. Doesn't take much to get the sp moving so when the rns hits and we get the volume then the sp will rocket
I've seen the so called 1 share buy today that supposedly is a sign used by mm's to say an rns is due the next day. Sometimes it comes true other times its complete tosh. But we can always hope for news tomorrow of £3 per share bid lol
Alwaysone- I am just a bit peed that I didn't buy in earlier. kept watching it rise and kept thinking there is no way it can keep having a blue day every day. But iI've now realized there is a solid reason behind this and more importantly there is still a lot of profit to be had here
the sp should be around £1 now. Ive managed to get some at 79p today. Everything is in place for the sp to keep rising. Just need to wait it out.