Cineworld company

Glad really never were room for two cinemas in Barnsley.. same as another bowling alley. Will only end up closing the other.

 

I have a small holding of around £500 of Cineworld shares, averaging about 20p a share. Wondering whether to average down on this.

 

It’s a plc so the former is not an option (that I know of).
You are right tho, I reckon, with your second sentence in that that is the aim.
The debt,it seems, is actually about 8b (company assets about 4b), and with interest rates rising wiping very very modest operational profits, the only way fwd is to address the basket case debt.
I can only think the institutions who are owed 8b are likely to accept some kind of equity in lieu of debt in an attempt to salvage anything at all, thereby as a consequence wiping out the average shareholder.
That said even if the company is liquidated, it’s safe to say, that in someway somebody somewhere will sooner or later show films in their cinemas given the infrastructure is in place. After all every picture house can’t be turned into a Wetherspoons.
In the end what bewilders me is how a string of picture houses, however grand, can achieve a debt of 8b...??

 

Parkway is absolutely shocking though

 

So is Barnsley bowl

 

The company won’t fold or be bought out, they are applying to restructure their debt by using the petition 11.
That allows they to keep trading.

 

FWIW Gordon, and I’m not a financial advisor, I think averaging down is a dodgy approach unless you bought high in a quality company , or there is an irrational dip in price in the same.
CINE under any definition surely isn’t quality. It’s a basket case from what I can see. It’s SP has tanked for a reason.
Unless you are a short term trader (and there may be a bounce next week), my most humble thoughts on CINE , would be, ask yourself where do you see any sustained upside of 4p a share, never mind to get to 20p or beyond? Disney or Netflix or Musk decide to buy a cinema chain is the only thing I can think of? Doubtful I should think.
Personally I’d flog into any rise in price next week and take the hit.
But what do I know?
Might be £2 next week lol.
Dyor as they say...

 

That’s what I meant when I said there would be a debt equity exchange . Allows keep on trading to salvage the situation instead of a wipe out. . Ordinary shareholders hammered tho?

 

Yes, l short term these shares, have been doing for the past few years - made quite a bit off it. It may go above 10p again... enough to double my money.