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There are a few differences, but I get your point..... AMC are not far off a full recovery of their share price and we are at 25% of our January value..... I can assure you there aren't enough differences to warrant such a vast difference in the recovery of two main players in the same industry.
The main differences that are affecting our share price in comparison are as follows:
1) We are amongst the 5 most shorted stocks on the LSE. This leads to market manipulation to suit the large institutions who have an interest in the share value dropping. Often share prices are forced down to allow these institutions to exit their short positions at a decent profit.
2) We have a legal case pending with Cineplex to the value of around 2 billion after we rightfully withdrew from our acquisition! Although this legal case most probably doesn't have legs and will be dealt with behind the scenes by our legal team with little ramifications to the business.
3) We are listed on the London Stock Exchange and not NYSE or NASDAQ. Therefore Uk political events, such as rises in Covid numbers, seem to impact us more than those over the pond (despite 75% of our cinemas being located in the USA).
Further differences are in the debt we have and the type of debt. (although AMC also have substancial debt as do most large corporations).
**before the derampers start to jump on the debt bandwagon let's just quash any likely comments that could arise by talking in laymen terms about debt.
Debt is not a bad thing, in fact in most cases it's a good thing!!
Debt is only a bad thing if it's not manageable. In Cine's case, our debt is manageable, hence lenders will still lend to us! Just check out the fantastic deal Mooky made on refinancing his debt on the holdings company he owns (which defers payments for 3 years!).
Borrowing money is good when you are a profitable business. The more money you have the more money you can make. You borrow money to make money.
So if a lender (who carries out extensive research and checks prior to lending large amounts of money) decides they are going to lend a company money, it's because they are confident that it will be paid back with interest.
This in effect makes lenders as much of a shareholder as we are. They are also betting that the company will succeed. We have the backing of lenders, so they have decided that we are a safe enough bet / investment.
Cine has substantial liquidity to survive even if we have our doors closed until 2021. The good news is that the doors are now open, so we have slowed down the cash burn and increased the chances of us turning a decent profit around a lot quicker than expected.
Half yearly financials will be published on 24th September. It is rumoured, & I stress only rumoured, that these results could be less harsh than expected, which 'could' have a positive impact on our share price.
If the results are good, short positions will continue to close & the share price could jump a
So..... our nearest competition AMC are blue in the pre-market, up 1.7% approximately and still holding a shareprice not too dissimilar to their January highs!
Anyone would think that 75% of our screens were in the UK and not in the USA (where they actually are!!).
I wonder what % of shareholders are inexperienced UK based traders........??
If I was Disney and I wanted to be really really clever then my strategy might be as follows:
1) Lobby to get Paramount decrees lifted
2) Push a new blockbuster movie straight to VOD to scare people into thinking Cinema is dead
3) When Cinema share prices tumble, negotiate a takeover of a cinema chain at a knockdown price
4) When said VOD movie fails (like it was always planned to) due to my high asking price, the value of cinema will be re-instated
5) Own a highly profitable cinema chain that I bought at a knockdown price and make 100% of the profit from all my future movies.
Mwahahahaha now onto the next stage of world domination.
#JUSTSAYING
imo
He has refinanced his holdings company loans because he knows there will be no dividends short term and he wants to ensure that none of his gold nuggets of shares go elsewhere.
Mooky is not panicking and sees not reason to be ramping our shares with constant media interviews and press releases.
This fills me with confidence.
If he wanted out and wanted to cash in via a studio then he would be pushing the business and showing how much of a fantastic buy it would be.
There is no desperation and no rash decisions.
Mooky is calm, calculated and is an extremely successful man for many reasons.
I am full of confidence with this share and so should all other investors.
Either..... our share price will recover above and beyond the January highs because Mooky holds on for good reason.
Or.... an offer to big to refuse comes in from a studio. An offer big enough for even Mooky to rethink his plans.
Either way... shareholders will win.
Realistically it is not going to be a short term win. But give the industry a few months (maybe 3 more months) to settle down and we will begin to see positive headway with our shares.
Short term do not despare if we see temporary, and I mean temporary lows
All imho.
The future is bright and I am excited.
I hope this line of thought can help settle some nerves. Good luck all.
I have a decent sized holding in CINE, I have been invested for a few months now and after a fair amount of averaging down, my average is in the 46p region. So as we speak, I am still in a good amount of profit although I am not worried if I fall into the red as I have no intention of giving up my holding any time soon.
As with all the other Cine shareholders, I have grown very frustrated with the red days and like others have plenty of theories on why the drops have happened and why the share price has been held back at times. Like many, I cannot see good reason that the share price is still as low as it is, given a good amount of positive news and reopening of large parts of the business. I am a realist and wouldn’t expect us to be in the £1 region like many believe, but I would have hoped that we would be fluctuating around the 70p mark at this stage of reopening.
I agree with certain elements of the ‘derampers’ posts and appreciate the alternative view, as it is ALWAYS very important to DYOR and check these views for authenticity. It’s nice to see the potential pitfalls with a share and is actually comforting at times to think ‘is that all they have to deramp?!’
There is still a lot of uncertainty and given some very very bad luck there is a slim chance that further closures could occur. Not a problem for Cine In the long term, but I understand the adverse affect on our share price.
THIS IS WHAT I WANT YOU TO KNOW.. I still have huge confidence in this part of my portfolio and will still hold this confidence even if the red days continue over the coming days .....
WHY? ... not because of all my research into the financial stability of the company (I won’t bore you with that) but because of Mooky, his recent decisions and recent press releases.
Think about this..... Mooky and his family have around a 29% stake in Cineworld and a large proportion of his riches are invested in the company.
If Mooky thought for one minute there was a chance that the company could not prosper in the medium to long term then he would look to offload the business to a studio. After all, we are the biggest bargain in the cinema industry right now, so finding a buyer would not be a problem (we all know about the Paramount decrees being lifted and the gigantic benefits to a studio of owning a cinema chain). If the company was in trouble, this would be the best way for him to get out and get out with a very large pay day. However... Mooky has made it very clear that he does not want out. He has zero intention to sell his business to a studio regardless of a £2.50 a share offer. Why? Because Mooky knows that his shares are worth more than this long term and that he runs a stable business with extremely good long term prospects. He has a vision and a business plan to back this up.
He has refinanced his holdings company loans because he knows there will be no dividends short term and he wants to ensure that none of his gold nuggets of shares g
The share price seems to be forgetting the biggest news in the cinema industry for decades.....
Large cinema chains are now an open market for large studios. A market that has been closed to them since 1948!!
Any day could see a studio such as Disney make a move for a bargain cinema chain.... and the biggest bargain right now is the second largest chain in the world.... Cineworld!
If this happens then Cine shares will instantly multi-bag.
Do not sell your shares cheaply and miss out!
@LB28 you are missing the point my friend.
The hysteria being created is stemming from a rise in ‘UK’ Covid cases. Unless there is information leaked about something else. These UK cases are largely in Young people and down to increased testing. Furthermore the illness is becoming less serious and causing very few deaths compared to the initial outbreak.
My point is that the UK cinemas only represent a small portion of Cineworld’s portfolio. In fact the large majority of cinema’s owned by Cineworld are in the USA where we are seeing large scale reopening of our cinemas and Covid cases falling RAPIDLY.
So even ‘if’ UK cinemas were closed for a few weeks, this would not have a significant effect on Cineworld’s revenue. Let’s remember that they have liquidity until 2021 if ‘ALL’ their cinemas were closed, which they just won’t be.
So let’s not be spreading doomsday type rumours and deramping in a way that is disproportionate to the information to hand.
Don’t get caught up with the panic that the derampers want.
Let’s remember that 75% of Cine venues are state side where Covid numbers are decreasing rapidly and the likelyhood of a Covid vaccine rollout this side of Christmas is high.
We are also close to a vaccine rollout in the UK thanks to some fantastic work in Oxford.
The share might take a drop today due to Unfounded hysteria, but looking at the fundamentals and half yearly financials coming up, we stand a good chance of a big increase despite the uk having increasing Covid cases.
No matter what happens over the next few weeks, come January we will be back over £1.
The only thing that will happen this week is a great opportunity for the remaining shorters to buy back in at an unexpected lower price. Once their positions are closed then we might actually be in a far better positions to move back in the right direction without so much manipulation of the share price.
All imho, gla.
Don’t forget the rumours of a ‘seat out to help out’ scheme in the UK.
I realise that the UK only equates to a small proportion of Cineworld’s portfolio. But being floated on the LSE it appears that UK news can have a substantial effect on the share price.
Loads of positive news for Cinema at the moment and a lot of potential for this share price to rise quickly.
Sorry forgot to say IMO!
Gla!
Considering Jhango are taking short term profits and doing so relatively quickly, the share price is holding very nicely. I think next week is going to be far more positive and I think we could head towards the 70p mark (certainly late 60’s) with some good reports of turnout from the USA over the long weekend.
I think Jhango may have been hoping that Disney or another large studio were swooping in to scoop Cine up at a bargain price. Mooky’s confirmation that he doesn’t intend for Cine to be taken private may have pushed them to look into other investments. No biggie for us, just a shame the share price has been held back as a result.
I still believe that the Mm’s are playing their role too and helping institutions with short holdings slowly release their positions back into the market.
Be patient as this will all play out over the next few weeks and let’s look forward to some ‘not as bad as expected’ financials on 24th!
I wish Shamus would take a day off too and save us all from his drool!
Fancy a trip to the Theme Park Shamus?? Maybe you could hit the cinema after too like the millions of other people that will be bringing profit to Mooky and the team over the weekend!
Extract from the BBC news website...
Disney's Mulan has received mixed reviews, with many critics saying it should have been screened in cinemas.
The live-action remake of the animated 1998 film was originally due to be released in March, but was delayed due to the coronavirus outbreak.
As a result, it has now been made available to rent in the UK for £19.99 on streaming service Disney+.
"Why on earth didn't Disney put this on the big screen?" asked Robbie Collin in The Telegraph.
He described it as a "visually stunning but heartless movie," adding that "its big-bucks effects are lost" on the small screen.
Nice to see the good old BBC are backing cinema too!
Nice article here about how Mulan has been done a disservice by skipping the cinema!
It reiterates the role cinema has to play in the Film industry and suggests Disney have made an error in going straight to VOD.
More positive press like this will help to return Cine to the levels we should be at right now! It’s also a nice little two fingers symbol to the derampers who are plugging VOD as the future..... it simply isn’t!! The future is bigger better and more interactive experiences from the big screen and Cineworld are here to lead the way!!
https://www.bbc.co.uk/news/entertainment-arts-54025463