Cineworld Share Discussion Threads

[bulltradept] 12/3/2020 12:10

In auction for 18 mins?

[gbyak] 12/3/2020 11:49

It's ok lads don'y buy then

I have and will continue to hold/buy

[gisjob2] 12/3/2020 11:47

But young people pass it onto the old. Why would you put your family at risk ?. Plus government may ban social gatherings in public

[philanderer] 12/3/2020 11:45

Depends how healthy you are even if you're under fifty.

[gbyak] 12/3/2020 11:39

It depends on the longevity of this virus .

Yes we know it's highly contagious but NO children anywhere in the statistics .

Likewise under 50 you might get mild symptoms but we love to make a drama via the media

[bookbroker] 12/3/2020 11:34

This company more likely to suspend its trading with the situation about numbers of people in confined ares, and the current price, it’s a false market with all its debt. You might be a brave man gbyak, but it’s hard enough buying a stock like Vod. In the current market, no rational except fear and algos. smashing the market. Regulators really need to look at the way markets are driven up to extremes and back again, after 2008/09 a generation of investors driven out forever, and history is repeating itself despite this being a health issue as opposed to a banking/mortgage crisis!

[gbyak] 12/3/2020 11:22

Bought a nice chunk of these at these levels

[bookbroker] 12/3/2020 11:19

Why should Iran receive handouts when they behave so errantly, but I appreciate the humanitarian issue, but the country needs to reform!

[tomboyb] 12/3/2020 10:34

BREAKING: Iran asks for loan from the IMF, the first such request since the 1960s.

That is unprecedented -

This is real and a lot these big companies will get taken over by its creditors -

[tomboyb] 12/3/2020 10:18

You don't want to be in too much debt in these markets -

Regardless you will get slaughtered -

CPI is another e.g where my belief is equity is worthless -

The recovery time is not available unless creditors are feeling v generous -

[albert3591] 12/3/2020 10:16

Tricky...tough decisions to be made good luck.

[tricky1992000] 12/3/2020 09:33

I do hold shares here, it was what I invested all my 2019 profits in.

I was absolutly furious when the company decided to increase it's debt by buying the canadian operation. Inorganic expansion based on debt has sank many a company, and you just don't know what's round the corner.

Still deciding whether to hold, in at about 218p.

[williamcooper104] 12/3/2020 09:22

If they don't pay their rent and business rates (again what's going to happen if they don't pay rates for 6 months) will they have enough recurring revenue to service their debt from their annual subscriptions (assuming quite a few get cancelled)

[williamcooper104] 12/3/2020 09:20

Sounds like there isn't a covenant issue right now as revolver covenants only apply if it's more than 35 percent drawn Sounds good But of course they will no doubt need to draw on their revolver and that will activate covenants which if then triggered would x default the whole of their debt So sounds like they either get covenant waivers or else they raise fresh equity If they solve their covenant issue they ought (I say very tentatively) be able to survive - assuming cv 19 is only a 2-3 month disaster They ought to waive any x default airing out is not paying leases - ehat landlord is going to take action for one or two quarters rent missed in these times

[williamcooper104] 12/3/2020 09:13

And why have they got covenants That's what held me of from investing - cinemas will come back but with the wrong capital structure Cine's equity may not see it

[john09] 12/3/2020 09:08

What a mess

[brasso3] 12/3/2020 09:08

Whilst I do not like to see a company being destroyed like this I am relieved to be making money on a short position as a hedge.

[n0rbie] 12/3/2020 09:04

They surely have to drop the acquisition to survive?

[masurenguy] 12/3/2020 07:38

Not the time to be making a $2.1bn acquisition of Cineplex in my view, on top of existing net debt of $3.7bn (excluding lease liabilities) when the impact of CV19 over the next few months is uncertain especially with the potential introduction of "social distance" restrictions by both the US and UK governments. No current position - watchlist only !

"At 31 December 2019, the Group's financing arrangements consisted of USD and Euro term loan totalling $3.6bn and a revolving credit facility of $462.5m ('secured bank loans') which had been drawn down by $95.0m. The revolving credit facility is subject to certain covenants, which are triggered above 35% utilisation, and the term loans also have cross default provisions in respect of this covenant...however it is difficult to predict the overall outcome and impact of COVID-19 at this stage. Under the specific downside scenario, however, of the Group losing the equivalent of between two and three months' total revenue across the entire estate there is a risk of breaching the Group's financial covenants, unless a waiver agreement is reached with the required majority of lenders within the going concern period. Only the specific downside scenario detailed above would indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. The Consolidated Financial Statements do not include the adjustments that would result if the Group was unable to continue as a going concern." RNS Number: 8948F, 12 March 2020

[gisjob2] 12/3/2020 07:33

GWR,

Agree completely, just look at Italy, closing all but pharmacy and food outlets. Any limits on social gatherings here an CINE are finished.

They've massively over extended themselves.

What value CINE now ?

[gwr7] 12/3/2020 07:28

That's a very round about way of saying the banks have them by the short and curlies.
They're desperate to underplay coronavirus but they know they've laid a massive, stinking egg.

[gisjob2] 12/3/2020 07:19

Oops, results state 'a 2 to 3 month shut-down due to corona virus will result in breach of covenants'.

Extremely badly timed Regal & Canadian acquisition unfortunately

Way to much debt, Not good !

[williamcooper104] 12/3/2020 02:48

And the "de-leveraging" sale and leasebacks