Member Info for WolfofWarks

The instis have been bitten though and they are far more risk adverse than PIs. Can you imagine the like of Goldman now advising their clients to invest in crypto? 18 months ago that was starting to happen. Companies like Apple and were looking at possible crypto solutions. I'm almost certain all of that work would have gone into reverse now.

I've only ever had a couple of grand in Bitcoin, Cardano and Tezos and it's worth £800 now. I bought it with five to ten years in mind but I think it's possible that I might never get my money back. Still interested to see where it might go though.

How do you know what their borrowing costs are?

I think your last comment is extremely naive. Shorts probably do the most research of anyone - they are usually highly sophisticated investors, hedge funds, etc. They are like a dog with a bone. At the time I couldn't understand why Boohoo had such strong short interest but I do now.

Sometimes a short position is simply hedging other positions. For example if you were long here at £1 and opened up an accompanying short and let it play out you average now would be £1 still. If you shorted the market in January you would be sitting very pretty now.

I still don't think there are many PIs who short unless they are very experienced and very wealthy.

Ian - Cineworld hasn't played out yet, we are only at the beginning of the C11 process. Judging one bankruptcy against another is not a matter of law. You can always make comparisons - C11 is similar to administration and C7 is similar to liquidation/winding up.

Bullbears - there is always a reason why companies fail - bad management, weak offering, fraud, poor/redundant business model, weak governance, etc, etc. Cineworld has a mix of way too much debt and potential outdated business model. They left themselves over exposed to a downturn or one off event. I think you have to look to the competitors to see what could happen and to my knowledge AMC and VUE are not playing out much better.

I always think the mark of a good leadership is the planning they put in place for the bad days and the manner in which they react, not just revelling in the good ones.

Bullbears - The most high profile large corporate bankruptcies are probably Lehman Brothers, Worldcom and Enron off the top of my head.

Closers to home most of the high street has gone - so examples would be Arcadia (BHS/Top Shop owner), Debenhams, Thomas Cook, Poundworld, etc.

Whilst the Netflix thing is interesting I think I'm right in saying we are only seeing a one week exclusivity window? I don't really see what's in it for Netflix to be honest, It's a platform business so would be completely against their model to have any meaningful stake in a bricks and mortar cinema business,

The only problem with btc going on a bull run in the medium to long term is some of the biggest advocates over the last 18 month have had their arse handed to them and are now sitting on huge losses. Btc has provided no protection against the current macro strife and was supposed to be a safe haven against those factors which destroy the value of fiat currency, ie those which are supposedly at the whim of central banks.

Crypto went down with the rest of the ship so you really need to bring through the next generation of believers for this to pick up traction again.

Bullbears - plenty of profitable companies go bankrupt. Plus the pandemic is only one of cinemas ongoing issues. It’s in a crowded market in terms of the entertainment industry, plus the ongoing threat from PPV and streaming. There’s also the ongoing poor slate and complete lack of originality with modern pimped out franchises masquerading as blockbusters.

I was having a look at my local vue listings yesterday with half term coming up and interestingly they are showing a lot of champions league matches and 30th anniversary showings of films like ‘The Bodyguard’. I’ll be watching these kind of differentiations with interest and they may offer some help if they become popular.

I doubt many new shorts have opened since September to be honest. It would be the equivalent of buying in at £1+ long.

You’re making stuff up now as you see fit.

I think if he ever does another Q&A it would be worth a cheeky question. Let’s see how invested this CEO is in the vision.

Who on earth is putting all that money up?

‘Private equity will have to borrow money from the banks to bankroll this. Not going to happen.’

Not necessarily. The consortium of dip lenders are pretty much PE anyway are they not? They certainly are not major banks.

Might not even be on a public exchange if private equity got hold of it.

I haven't looked at the accounts for a while but if I remember correctly the shares are held in treasury for the employee and management schemes. Although I doubt very much the management will be hitting their targets any time soon.

'See the 'business' buying its own shares again.
Never a good sign to see, propping up its own sp, tut tut'

You've lot me with this one, are share buy backs not usually seen as a position of strength?

I'm in BP, Glencore & M & G - all have substantial buy back programs at the moment.

The big popcorn and drink is part of the experience.

I never said anything about 20%, I said 'a stake'- also said this which you have ignored ....

'How sensible this would be given the empire building that led to the over leveraging and ultimate demise here is another matter entirely.'

I'd surprised there are enough decent films to warrant going every week.

If the creditors believe the Mooky and his Bro are the people required to run the company then they could easily give them a stake in the company.

How sensible this would be given the empire building that led to the over leveraging and ultimate demise here is another matter entirely.

Chapter 11 is basically the US's equivalent of the UK's administration.

I thought the whole point was to HODL?