Updates and Ideas

Cineworld - Exciting film slate and pent up demand could drive re-rating

September 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It’s well-known that entrepreneurs have a higher appetite for risk than most but perhaps none more so than the Greidinger family who effectively gambled their then 28% interest in leading UK and Central European cinema operator Cineworld through the reverse-takeover of Regal, the second largest player in the USA. Although that US$5.8 billion transaction in February 2018 immediately transformed Cineworld’s scale, with turnover and EBITDA profit increasing 255% and 278%, respectively, to US$4.4bn and US$1bn between FY’17-‘19, it also massively increased net debt from US$384m in ‘17 to US$3.5 billion in ’19. Covid has meant the timing, of course, was horrendous as was Cineworld’s incredible do ...

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TMI Trader Portfolio 2 - September '21

Cineworld (April 2020)

Cineworld (February 2020)

Cineworld (September 2019)

Cineworld - Sale and leaseback yields special dividend (July 2019)

Cineworld - Results trigger broker upgrades (May 2019)

Cineworld - Cinema chain transformed by US acquisition (April 2019)

Cineworld (July 2018)

Cineworld - Transformational US acquisition (March 2018)

Cineworld - Cinema operator boosted by Hollywood blockbuster (October 2017)

Cineworld (July 2017)

Cineworld - Acquires five cinemas for Â£94m (October 2016)

Cineworld (May 2016)

Cineworld (March 2016)

Cineworld (October 2015)

Cineworld - Cinema chain to benefit from strong film release schedule (September 2015)

Cineworld - Second largest cinema chain expanding rapidly (July 2015)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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