Cineworld - CINE - Share Chat

A company is only worth what people will pay for it. Market cap is the best live expression of this.

Enterprise value doesn’t work here as this is the cost for a buy out and includes the debt.

Net assets are difficult to price at time of such volatility

You are bang on! :+1:

Hmm :thinking:
To a fashion I suppose. It is a measure of confidence. Take Tesla for example. It does not pay a dividend and doesn’t make a profit on selling cars. Think it would be stretching it to say its market cap is anything other that a speculative marker on its value. It’s incredibly vulnerable to a massive change.
Its PE value is over 300. Investment in such a company is purely gambling.
I think for a stable dividend paying company you could consider market cap as an indicator of value. However, for volatile situations like Cineworld or a speculative share price like Tesla I’m not so sure

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Intesting it’s on up

I cashed out at a loss. As I didn’t want to wait for it to get back towards £1 which was my buy in price. And have reinvested. But it is growing nicely now. I suspect people with the 50p shares are happy :slight_smile:

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Me too. I made a £120 loss overall on CINE, and while I would have recouped some of that if I’d held on a bit longer, I decided that when looking at the debt per share, my enthusiasm for my long term expectations was probably misplaced and decided to call it quits.

And down again guess everyones trying to get out. Only small amount so will hold on

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Can I ask @Jakeisme why sell them re buy? If that’s what you’ve done :thinking: as would it not been better if you lower your AVG at least?

As if bought back in you must believe in the company’s ability to get back to a healthy standard and to challenge it’s currently share price…?

Which has seen 70p for months :heart:

Sorry I meant I sold and reinvested elsewhere. I didn’t buy anymore Cineworld.

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Ah with you :rofl::rofl: I was gonna say lol

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I’m not moaning but why the sudden turn around in SP :thinking: we know their debt hasn’t gone down from what it said and it can’t be the threat of new bond :joy:

Debt is only a problem if you can’t service it. Interest rates are low.
The issue is whether people will return to the cinemas and restaurants etc. It’s whether you think that people are fed up with not going out and taking in experiences or wish to stay indoors.
You can apply the debt question to many of the companies on the Stock Market. Some of the posts on this feed have focused on one issue only and been very prescriptive.
Investing in Cineworld is more about gut feeling and no one can pronounce with confidence what will happen.
I lost £180 at one point. Rather than thinking in terms of recovering that loss I thought “would I buy the shares at that new price?” The answer was yes, so I reset my thinking and accepted the new value as what I had at that time.
This constant worry about the present price compared to what we paid is very destructive.
An individual company should be part of a wider portfolio. I have seen posts of people who have invested solely in Tesla and made a lot of money. However, logically it was a dumb thing to do and still is.
Constant monitoring of an individual narrow portfolio is a painful waste of time. (I’m not aiming that at any individual but as a general comment).

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There’s also the small possibility of a future retail frenzy bidding the share price up astronomically and allowing them to clear all the debt like GME and AMC did earlier in the year.

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Think psychology not mathematically.
People want to go out for these films, they want to forget about life for two hours. Yes, you can rent a film on netflicks, but you’re at home on your sofa with your kids.
A cinema is a place of magic, of wonder and escapism. I don’t think they’ll reach the highs of before but they’ll always have a place, and that’s why I invested a few months ago waiting for James Bond.

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It goes further than that at the moment. Cinema is actually cheaper than streaming now. I’m confident in the value proposition and that’s why I’m still in.

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You’re correct nobody can predict with confidence what will happen but we can take all the available data and make an educated guess. Nobody can say you’ll not be hit by a bus tomorrow but if you tell me you’re staying in your house and not going near a bus I can say with a degree of certainty that you’ll be safe.

Abso-bloody-lutely!!!

Cineworld unlimited £9.99 - £18.40 per month per person
Netflix (£5.99) & Prime (£6.58) £12.57 limited people

With Netflix & Amazon Prime you’d have access to $28bn worth of content & 48 Oscar nominations in 2021.

I’m not down on cinema, it isn’t how I choose to spend my spare time, but I don’t see how Cineworld is a good investment. All I see is James Bond this or [Insert blockbuster here] that. They’ve had to drop ticket prices to get people back in the door which only further damages their bottom line.

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This is the problem that rose tinted glasses cause :joy: The cinemas struggled in the good times and built up huge debts then covid hit and they grew loads. Next add in the massive increase in home entertainment options and standard of home set ups.

To get back to even they need a miracle which seems unlikely. There will always be a market, maybe more mixed purpose smaller venues instead of chains but hard to see how they will get back to packed levels of the 90’s. Without some radical change I just struggle to see why or how it can get back to profit bar a few big city/tourist based ones.

My main reason for getting out is there are simply many better options with much much better odds of improving my finances.

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I was more considering single tickets vs premium access/rentals rather than cinema memberships. Disregards the viewing experience as well (does basic netflix even include HD anymore?) Ultimately you have to look at what people in the industry think, and the likes of Disney would clearly not be bothering with commitments if they weren’t confident.

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Being sued.

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I can see upturn once some new films start coming out but unless they drop ticket prices alot for alot films people will just watch at home I think based on what I do.

I might consider pass but I have problem two cinemas chains close to me and sometimes go either.