Cineworld Share Discussion Threads

[mozy123] 28/8/2019 15:45

At this rate the Greidingers will be taking this private.

[morus193] 28/8/2019 14:05

Yeah fun and games when buy back time comes :)

[galatea99] 28/8/2019 13:56

Now more than 7% of CINE shorted.



Perhaps today's move down reflects that.

[sammu] 26/8/2019 19:00

Thanks for the article - an unusually well balanced and sensible one.

[galatea99] 25/8/2019 10:18

Article today in "The Times":

"It’s been 15 years since Elle Woods, played by Hollywood star Reese Witherspoon, journeyed to Washington DC to have her say on animal rights. Next year, she will return to the silver screen in Legally Blonde 3.

We can also look forward to a new James Bond, a sequel to Top Gun and a Barbie film — all likely to draw crowds from the TV and into the cinema.

For Cineworld, 2020 needs to be a blockbuster. This month, it said admissions fell in the first half of the year after box-office hit Avengers: Endgame failed to make up for a dismal line-up of films. Mooky Greidinger, chief executive, blamed a series of “disappointing sequels”.

Cineworld’s sales fell 11% to $2.1bn (£1.7bn) while pre-tax profits dropped almost 13% to $140m. The shares have been on the slide since May, closing last week at 229.1p, giving the FTSE 250 company a valuation of £3.1bn. Now they may be looking a little cheap.

Analysts say investors are placing undue focus on film performance; they should be looking at the fundamentals. And dealing by big investors suggests optimism.

When Cineworld spent $3.6bn last year to buy Regal, which has more than 7,000 screens, it became the world’s second-biggest chain, with 9,500 cinemas.

Cinemas are traditionally recession-proof. And many think fears of a downturn because of families switching to streaming services are overplayed. Studios are increasingly focusing on large-scale productions that play well on the big screen, such as the Avengers films and James Cameron’s Avatar 2.

Netflix and Amazon Prime are more focused on binge-worthy box-sets such as The Crown and Homecoming, which can be enjoyed on a smaller screen.

Cineworld, founded 24 years ago with one cinema in Stevenage, plans to refurbish 100 of its American sites over the next three years and add coffee shops and bars to tired-looking multiplexes.

The industry trends are also looking good — American sales have slowed their decline from -10% to -6.4% as of August 18. Cineworld has said that its subscription programme, an unlimited card, is running ahead of forecasts since its launch in America at the end of last month. The scheme promises to boost numbers: normal customers visit less than twice a month, subscribers visit almost three times.

Analysts at Investec, the firm’s joint broker, have a 415p target on the stock, while Jefferies, which says cinema is “not in structural decline”, is predicting 445p. With a new offering from Star Wars due over Christmas, it may be time to grab a ticket and stock up on popcorn. Buy."

[sammu] 16/8/2019 21:22

I want to own a cinema company not a property/cinema hybrid. Happy for them to do more sale and leaseback deals if possible. Also happy for them to use proceeds to pay down debt and pay special dividends. Combination seems sensible to me. They paid down a big slug of debt. Yes there is plenty of it, but debt is cheap and looks likely to stay that way.

[philanderer] 16/8/2019 19:03

Cineworld shares finished 4.9% higher after a trust run for the benefit of the children of brothers Chief Executive Moshe Greidinger and Deputy Chief Executive Israel Greidinger acquired GBP2.2 million shares.

Alliance News

[williamcooper104] 16/8/2019 13:18

Bookbroker Special dividends worry me - would far prefer the risk of over investment than under Sale and leasebacks don't cut debt - they merely refinance it while losing control of their real estate

[n0rbie] 16/8/2019 13:13

Getting close to the 30% mark which makes a takeover offer mandatory...

[cwa1] 16/8/2019 12:39

And for the record...

16 August 2019

Cineworld Group plc ("Cineworld")

Purchase of Cineworld Shares

Global City Holdings B.V. has informed Cineworld that yesterday (15 August 2019) it acquired 1 million shares of Cineworld on the London Stock Exchange for an aggregate cost of GBP2,216,342.20.

Global City Holdings B.V. is the parent company of Global City Theatres B.V.

As previously disclosed, shares in both Global City Holdings B.V. and Global City Theatres B.V. are held in trust for the benefit of the children of Moshe Greidinger, CEO of Cineworld, and Israel Greidinger, Deputy CEO of Cineworld.

Following the completion of this share acquisition, Global City Holdings B.V. and Global City Theatres B.V. together hold a 27.99% interest in Cineworld.

[miti 1000] 16/8/2019 12:36

Nice reversal on cine after that big director buy.

[bookbroker] 16/8/2019 11:41

What we need here are more sale and leasebacks to cut the debt, and not reward shareholders with more special dividends, fiscal prudence is key, the rewards can come later, if at all! Declining audiences may be a feature going forward, dependent on releases, but when Avatar 2 and 3 released it should provide a huge boost, that is off course when Disney/Fox decides!

[john09] 16/8/2019 11:08

Let it drop some more. Forward yield of 7.5% but I imagine it’ll go cheaper

[feral27] 16/8/2019 10:51

So, if 2-3 hedge fund shorters are driving this down in order to increase their positions, this fall should be quite short-lived? I made some generalised comparisons this morning, the 3rd quarter box office and remaining slate does looks strong.

[chrisharp6] 16/8/2019 10:37

What do people think the next level of support will be?

[perky77] 16/8/2019 08:40

Thanks Mike

[nav_mike] 15/8/2019 21:53

Perky

The closing auction is essentially just that...for 5 mins buyers and sellers place their buy and sell orders at various levels, and the SETS trading mechanism matches them off.

The closing UT price is the level at which no more orders can be matched.

Its often a time of big volume

[sammu] 15/8/2019 20:08

The shorters provide an opportunity to buy the shares more cheaply. Unfortunately it may also nudge a private equity led buy out at top cheap a price.

[perky77] 15/8/2019 18:00

Thanks Mike, what does this mean in simple terms?

[bookbroker] 15/8/2019 17:49

That is why this company would be better off private!

[nav_mike] 15/8/2019 17:42

Looks like the accelaration down recently has been down to 2 or 3 hedge fund shorters increasing their position...god how i loathe those vultures :(

And thats only the published postions over 0.5%

[nav_mike] 15/8/2019 17:40

Think you are talking about the UT trade which is just the result of the closing auction?

[perky77] 15/8/2019 17:39

There has been a buy of almost £5m after the close

[williamcooper104] 15/8/2019 13:54

Sold out a few months ago No chartist - but looked at AMC and Cinemark and going to buy back in again Has been an almost 10 year on and off affair for me with Cine