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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.

  • Epic Code:
  • CINE
  • Price:
  • 65p
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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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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