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That is a fair point, and agree US aren’t in a great spot. There will be some rough days ahead, but I still see this as a long term hold and am not put off by volatility in the short term
@johnht what’s your interpretation of today’s and last week’s RNS from GS? Genuinely interested to know
It is serious yes, but in terms of a Cineworld investment it shouldn’t cause long term alarm. This press conference affects under 15% of Cineworld’s revenues, and I am confident following previous board statements that we will be able to ride out the more localised lockdowns seen now particularly with screens spread across the globe.
Have to say was expecting a double digit drop today. Last time the FTSE posted a 3% drop like this we were well down in the 30s.
Shows how far we’ve come along since those lows, and we still have a support level in the 40s.
Indeed.
Cine holders’ maximum exposure 100%
Cine shorters’ maximum exposure INFINITE
91% are long on Cineworld, so maybe it does?
Also the article I shared was aimed at amateur investors to discourage anything thinking of taking out a short without understanding the risks. That’s not a fascinating point of view, it’s just common decency to fellow investors.
Wisdom is knowing however much you think the fundamentals of a company are flawed, exposing yourself to unlimited losses in the short term is folly.
The only H&S action around here is us lot laughing our heads off at your contagious covid farts.
An old article, but still just as true today. There have been many high profile shorting horror stories over the years, Volkswagen perhaps being the biggest.
https://www.marketwatch.com/story/why-you-should-never-short-sell-stocks-2015-11-19
I might be chatting bolox here, but surely this RNS shows a very significant hedge by GS in the event that the share price goes up in the short term.
So for me, this won’t necessarily have an impact on the SP tomorrow AM, but it does demonstrate the market sees a significant CINE bounce on results day as a very possible outcome and worthy of protecting against.
Mark ignore seen your apology, fair play mate
johnht openly said he’s shorting earlier. Probably time to dial it down a tad Mark.
Here’s some detailed financial planning for a small 2-3 screen independent chain, which shows profitability at 15-20%. With economy of scale etc, would expect Cineworld to be comfortably profitable at 15%
https://www.independentcinemaoffice.org.uk/advice-support/how-to-start-a-cinema/the-economics-of-the-operation/
morpi, if you’re suggesting the Cineworld share price is at all correlated to the education levels of a few posters on this message board.... then I think you may be well placed to join them back at trading school.
Cinemark surging too. Must be something industry specific kicking off
Johnnykipper, if you’re making investment decisions based on one poster you don’t know on a message board then you probably shouldn’t be investing at all.
DYOR, take responsibility for your own investment decisions and grow a pair.
What article was that?
Also fascinating strategy to short after it goes down and long after it goes up... if you think it’s going to £1.5 surely you just sit in long.
Another key factor in the 2019 attendance decline was the closure of loss making sites in 2019, further boosting the bottom line.
Why do you say that, are you hoping it drops another time haha??
Good work forest for picking this up