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19 September 2021
13:31 hour

Should I buy Cineworld shares (LON:CINE) before it’s too late?

The Motley Fool UK

14/09/2021 - 17:10

The Cineworld share price (LON:CINE) has fallen from its 2021 peak, but it is showing some resilience. What will the second half bring? The post Should I buy Cineworld shares (LON:CINE) before it’s too late? appeared first on The Motley Fool UK.


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  1. Move aside AMC, Cineworld shares could be the next meme stock (07/07/2021 - The Motley Fool UK)
    The investing world as we know it is changing form. Retail investors are increasingly finding power in numbers. Indeed, for U.S.-based cinema operator AMC Entertainment, this has resulted in various “meme stock” rallies that have taken this cinema chain to absolutely incredible levels of late. For U.K.-based cinema operator Cineworld (LSE:CINE), its shares have yet to exhibit such a move. In fact, looking at the medium-term stock chart of the company, we see far from this kind of volatility taking place. That said, Cineworld shares have shown momentum of late. In fact, since the beginning of October, this stock has been a three-bagger. Let’s discuss whether this momentum could continue, or if more downside potential is possible with Cineworld. Pandemic reopening thesis is strong with Cineworld shares The pandemic reopening thesis remains the key driver providing support for the cinema operator right now. Indeed, as pandemic-related restrictions are lifted (hopefully sooner than later), cinema operators stand to benefit from this trend more than most sectors. Of course, the rise of the Delta variant and recent lockdown measures imposed closer to home have provided pause for investors. While Prime Minister Boris Johnson announced on Monday the government’s plan to allow British citizens to go maskless by the end of the month, worries about the potential rapid spread of the delta variant in such an environment is stoking caution among traders. That said, Cineworld has seen impressive demand in its first few weeks of reopening specific locations. This reopening thesis makes Cineworld shares attractive to me. Let’s dive into whether or not Cineworld has what it takes to become a true “meme” stock. Cineworld well positioned for a speculative rally It’s worth noting that what’s been going on with AMC in the U.S. is incredible. Accordingly, whether or not a similar meme rally with Cineworld shares in the U.K. remains to be seen. However, there are some interesting parallels between the two companies, aside from their obvious similarities. First, Cineworld is heavily shorted at the moment. The current short interest with CINE stock is around 36%. For investors who may not be familiar with these numbers, that’s high. That means that for every 100 available shares of CINE stock, 36 shares are currently being shorted. For retail investors looking to orchestrate a squeeze, this is the perfect type of environment to do so. While it’s unclear whether other intrinsic factors driving a short squeeze type of rush into Cineworld shares may materialise, the company’s share price around 84p certainly invites retail investors to buy this stock heavily at these levels. Bottom line Short squeezes are typically very rare occurrences, and are usually a footnote in most business school textbooks. However, what we’ve seen of late in the cinema space makes the stock interesting to consider from this speculative lens. That said, from a longer-term perspective, Cineworld shares appear to be much more reasonably valued than those of AMC. This stock is still trading well below its pre-pandemic levels. Accordingly, I’m considering this stock on a value basis alone. The potential for a short squeeze shouldn’t be the reason to own any stock. That wouldn’t be Foolish. However, Cineworld’s prospective outlook in a fully reopened economy is enticing. Accordingly, this is a stock on my watch list right now. The post Move aside AMC, Cineworld shares could be the next meme stock appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Forget the Cineworld share price! I’d rather buy other UK shares in July Should I buy Cineworld shares at 82p? 2 penny stocks to buy in July Is the Cineworld share price about to make a comeback? Cineworld shares are up 273% in 8 months. Am I too late to buy? Fool contributor Chris MacDonald has no position in any shares mentioned in this article. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  2. Will the Cineworld (CINE) share price rise with soaring seat sales? (24/05/2021 - The Motley Fool UK)
    With the developed world emerging from pandemic lockdowns, everyday life is set to resume. And one great pleasure of modern life — going to the cinema — is now an option for consumers. So what could happen to the Cineworld (LSE: CINE) share price? The Cineworld share price collapses Cineworld is the globe’s second-largest cinema chain. At the end of last year, it had 9,311 screens across 767 sites in 10 countries, employing 30,000 people. However, when Covid-19 lockdowns arrived in spring 2020, the business was taken almost to the brink. With cinemas shuttered, CINE’s sales cratered. Revenues collapsed from $4.37bn in 2019 to $852m in 2020, crashing by more than four-fifths (80.5%). Such a severe contraction proved disastrous for the Cineworld share price. Two years ago, the Cineworld share price was riding high. On 29 April 2019, CINE shares closed at 321p, close to all-time highs. By the end of 2019, the stock had dropped more than £1 to 219.1p, but the worst was yet to come. During ‘Meltdown March’, the shares closed at a low of 21.38p on 17 March, down more than nine-tenths (90.2%) in 2020. Throughout 2020, there were real fears that the company might not survive multiple enforced shutdowns. Thus, on 5 October, the stock hit a new intra-day low of on 15.11p. Yikes. Cineworld comes back from the dead However, like a zombie in a George Romero horror movie, the Cineworld share price came back from the dead. The shot in the arm was the announcement in early November of several effective Covid-19 vaccines. This breathed new life into the stock. It more than quadrupled from its October trough, ending 2020 at 64.1p. However, as vaccination programmes were rolled out, the shares kept soaring. On 19 March 2021, the Cineworld share price hit an intra-day high of 124.85p, before closing at 122p (2021’s closing high). What a comeback from the March 2020 lows. But CINE shares have been in decline since then. As I write, they trade at 89.69p, down 35.16p — more than a quarter (28.2%) — from their 2021 high. With the share price falling and seat sales resuming, is now the time to buy CINE? I like the stock today As a traditional value investor, I try to stack the odds in my favour by buying into companies with strong cash flows, profits, and cash dividends. Obviously, Cineworld doesn’t currently fit that description. Today, Cineworld has a market value of £1.2bn, but also carries $8.3bn (£5.86bn) of net debt, which is a huge burden. The business lost $3bn in 2020, versus a profit of $212m in 2019. Clearly, getting back to profitability is going to be an uphill struggle for the group. Just a month ago, I passed on buying CINE with the Cineworld share price at 95.66p. But with the shares now trading below 90p, my mind is changing. CINE now has plenty of liquidity and cash at hand to support it until life returns to a new post-Covid-19 norm. Furthermore, the group issued an upbeat trading update today, confirming that 502 (97%) of its US cinemas are now open. It also confirmed receipt of a $203m tax refund from the US government. And UK ticket sales for children’s film Peter Rabbit 2: The Runaway were strong. Finally, there may be light at the end of the tunnel for Cineworld. For this reason, I would buy CINE stock at the current price as a recovery play. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Short sellers are pushing the Cineworld share price down! Why now is a great time for me to buy Cineworld shares Will Cineworld shares ever be worth buying? As the UK reopens, is the Cineworld share price a bargain? Why I’m buying this absurdly cheap FTSE 250 stock this month Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors. The post Will the Cineworld (CINE) share price rise with soaring seat sales? appeared first on The Motley Fool UK.
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  3. Is Cineworld’s share price about to soar? (18/09/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price has continued to trade in a sideways motion in recent weeks. Sure, news on cinema admissions in the US and UK has been impressive since theatres opened en masse in the spring. But rising Covid-19 infection rates in these territories — and growing fears of fresh lockdowns as a result — have stopped the CINE share price from advancing. Could the Cineworld share price be about to soar again? And should I buy the UK leisure share for my investment portfolio? Reasons to be bullish! Here are a couple of reasons why I’d buy the cinema chain’s shares today: Blockbusters remain ultra popular. A steady stream of sequels, reboots, and new releases from the world’s most popular film franchises have helped the global box office hit record highs in recent years. Much to the annoyance of many movie critics it seems that the pull of these blockbusters remains at pre-pandemic levels. Strong ticket sales for James Bond’s latest outing, No Time To Die, for instance give the likes of Cineworld plenty to be confident about. Leisure spending keeps rising. Robust box office activity in 2021 has been helped by cooped-up people looking to get out of the house again in vast numbers. According to Barclaycard, spending on the broader entertainment sector increased 24.2% in August. That’s comfortably above the 15.4% rise in broader consumer spending. This disparity might be particularly pronounced today. But people were spending more on leisure compared with other retail areas before the pandemic, too. Why I worry about Cineworld’s share price The appeal of the cinema with the general public remains pretty solid, then. And pleasingly, the conveyor belt of money-spinning popcorn movies coming out of Hollywood is speeding up again. But does this make Cineworld a top turnaround stock for me to buy? Well it’s worth noting that institutional investors and hedge funds remain quite bearish on the Cineworld share price. According to shorttracker.co.uk, an eye-popping 8% of the company’s shares are being shorted. That puts it at the top of the list and well above second-placed Carillion (at 7.2%). There are several reasons why I worry about Cineworld’s share price. As I said, Covid-19 infection rates have been resurgent of late. And they threaten to worsen in the winter, a scenario that could see Cineworld and its peers shutter their doors again. This is a massive worry considering the huge amount of debt the penny stock has on its books. I’m also concerned about the impact that streaming services like Netflix will have on the long-tem future of cinema. Trade paper Variety recently reported on a survey from the Independent Cinema Office that shows 87% of UK operators believe that increasing audiences over the next one to three years (and particularly in the critical under-30 category) is their biggest challenge. Their concerns could get worse as the US streaming giants invest more and more in technology and in content, too. All things considered, I think Cineworld remains a risk too far for me. I’d rather buy other UK shares today. The post Is Cineworld’s share price about to soar? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Is the Cineworld share price heading to zero? Should I buy Cineworld shares (LON:CINE) before it’s too late? Should I add Cineworld shares to my portfolio today? Will a US listing help the Cineworld share price? Cineworld shares are down 7% this week. Should I buy the dip? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  4. Rolls-Royce and Cineworld: are these UK shares too risky to buy now? (15/02/2021 - The Motley Fool UK)
    There’s more in common between Rolls-Royce (LSE: RR) and Cineworld (LSE: CINE) than meets the eye. RR is an engineering giant while CINE is the second largest cinema chain in the world. In the eye of the storm Both, however, have been in the eye of the storm since the corona-crisis started. As a supplier to airlines, RR has been hugely impacted by the lockdowns. Cinema outings have been disallowed for much of the past year too, impacting the share price.  Both companies’ financials have been shaken because of this. Each has raised funds to get through this time too. These developments have impacted their share prices, which are now trading at less than half their levels at this time last year.  The rising tide That’s not all though. RR and CINE have positives in common too. For all their challenges in 2020, their share prices are on the path to recovery. At their worst, they were less than half of even their current levels.  Moreover, the UK just met its target of vaccinating 15m people in the country by February 15. With this speedy development, I think there’s more hope that we’ll see the end of the lockdown soon enough. No wonder then, that today’s a good day for both these two stocks and indeed for many other Covid-19 impacted ones. While the RR share price is up over 2.5% as I write this Monday afternoon, the CINE stock is up over 8%.  What’s next for the stock markets? But just because they have been on a similar journey, does it mean they are headed for the same destination? I reckon that, barring any untoward developments, we could see a boost to the stock market rally as the return to the ‘old normal’ becomes imminent. Investors already believe that the FTSE 100 index is undervalued. If we add the Brexit and potential corona-crisis resolutions to the mix, investors in UK shares appear to have a winning year at hand.  If this happens, many shares’ prices could rally, especially if they were badly impacted in 2020. This of course includes both RR and CINE.  How the Rolls-Royce story can play out But I think there are big long-term risks to RR. Including 2020, RR would have clocked net losses in four of the past five years. Even ignoring 2020, I’m uncomfortable with its performance in the pre-Covid-19 years. This is especially so now that it has raised more debt. RR has a long and impressive legacy, and I’m sure it can turn around at some point, but that doesn’t seem to be right now.  Cineworld can recover faster CINE on the other hand, has seen sharp increases in revenues over the past few years, and has also shown net profits. So, I’m more willing to discount 2020’s performance as purely crisis-driven.  There’s a risk that CINE’s performance may take some time to recover. And that’s worrisome at a time when its debt too has increased. Yet, on balance, I find CINE a better investing option than RR.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Rolls-Royce share price is down 66% this year. Here’s what I’d do now Will the Cineworld share price ever return to pre-pandemic levels? Should I invest in Cineworld shares now? Rolls-Royce share price: could the company be a Tesla competitor in the future? Should I invest in Rolls-Royce shares now? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce and Cineworld: are these UK shares too risky to buy now? appeared first on The Motley Fool UK.
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  5. London Markets: Cineworld shares fall after turning to bond market for more funds, while Vodafone climbs on positive broker note (25/03/2021 - Market Watch)
    Cineworld shares fell as much as 14% as the movie-theater operator set out plans to raise more money with its cinemas still shut.
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  6. Cineworld shares are up 273% in 8 months. Am I too late to buy? (09/06/2021 - The Motley Fool UK)
    In 2020, Cineworld‘s (LSE: CINE) share price sank to lows never before seen in the company’s 13-year stock market history. However, sentiment has since improved. The shares have soared from 24.3p eight months ago to 90.7p. Have I missed the boat? Or could there be a lot more to come? After all, the shares traded as high as 350p a few years ago. Catastrophe risk Warren Buffett has said: “I’m always looking at the downside on something first. I mean, if you can’t lose money, you’re going to make money.” I think Buffett’s policy is a good one, and it’s one I try to follow. At Cineworld’s current share price, its market capitalisation is £1.2bn ($1.7bn). Set against this, its level of debt looks extremely high. Year-end net debt (excluding lease liabilities) stood at $4.3bn. That’s worrying enough for me, but it goes up to an eye-watering $8.3bn when lease liabilities are included. What would happen in the event of renewed restrictions or lockdowns, say because of a virus mutation that’s resistant to current vaccines? For a company with as much debt as Cineworld, the outcome for shareholders could be catastrophic. Can Cineworld trade out of trouble? Excluding a disaster scenario, Cineworld’s debt is still highly problematic for me as a potential buyer of the shares. In the pre-pandemic year of 2019, the company made an operating profit of $725m. But 78% of this ($568m) went to servicing its debt. Last year, due to an increase in borrowings of more than $1bn, the cost of servicing the debt rose to $787m. An operating profit of $725m in the last normal year’s business and interest payments currently running at $787m don’t look to me like a great starting point for trying to trade your way out of trouble. As such, I see a relatively high risk of a major financial restructuring and painful dilution for existing investors. Upside potential for Cineworld shares Cineworld may be able to avoid a restructuring, if it can slash its cost base and produce materially higher operating profits than the cost of servicing its debt. And the current reopening trajectory, with evidence of pent-up demand and a strong slate of delayed film releases, is helpful. One or two of my Motley Fool colleagues are positive on the stock. Indeed, Cineworld bulls can look back at that previous 350p share-price high and argue that the potential upside reward is worth the downside risk, and that I’m not too late to buy. Headwinds However, even if Cineworld can avoid a financial restructuring, I think it could take some time to strengthen its balance sheet. And longer still to resume the dividends that were once a big draw for investors. Several headwinds won’t help Cineworld or its shares. There’s been a two-decade structural decline in cinema-going in the US (Cineworld’s largest market by far). Film studios are shortening the windows of theatrical exclusivity. And streaming services like Netflix are providing rising competition to the traditional way of consuming movies. My bottom line on Cineworld shares At the end of the day, Cineworld’s millstone of debt and the challenges it faces in servicing it, are a deal-breaker for me. I’ll revisit the company when it releases its half-year numbers, but for now, I’m avoiding the stock. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Is this UK penny stock worth buying? 1 penny stock I’d buy instead of AMC Entertainment shares Why isn’t the Cineworld share price rising faster? What’s happening to the Cineworld share price? The Cineworld share price is flagging. I think this reopening stock is a better buy G A Chester has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld shares are up 273% in 8 months. Am I too late to buy? appeared first on The Motley Fool UK.
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  7. The Cineworld (CINE) share price has dived 22% in 1 month. What next? (26/04/2021 - The Motley Fool UK)
    Throughout my life, going to the cinema has ranked among my most exciting and enjoyable everyday treats. Like many, I love going to see the latest blockbuster, thriller, comedy or sci-fi extravaganza. It also drives me crazy when people talk, use their phones or eat noisily during the feature. But I don’t have that problem right now. Cinemas worldwide are mostly closed due to lockdowns. But following the Cineworld (LSE: CINE) share price has been an epic saga in its own right. The Cineworld share price crashes For a close-up of the corporate damage done by Covid-19 in 2020, I kept an eye on the Cineworld share price. Two years ago, on 29 April 2019, CINE shares closed at 321p, nearing their all-time highs. But the stock then eased off, closing 2019 at 219.1p. As Covid-19 infections spread worldwide, Cineworld shares almost died. On 17 Mar 2020, they closed at 21.38p, crashing almost nine-tenths (90.2%) in less than three months. At this time, Cineworld shareholders must have thought they were in a horror movie. Cineworld survives the pandemic Happily, like the main protagonist in a teen-scream movie, Cineworld lived to fight another day. In order to survive, the group raised several rounds of fresh capital and liquidity from its shareholders and lenders. Just a month ago, Cineworld raised another $213m by issuing a convertible bond with a 7.5% coupon (yearly interest rate). These emergency actions helped to bring the business — and the Cineworld share price — back from the dead. By early June, the share price briefly topped £1 and closed at 99.44p on 8 June. But as Covid-19 infections multiplied, the shares sank. On 28 October, the stock closed at 24.32p, around 3p above its low during ‘Meltdown March’ 2020. Then early November brought news of several highly effective Covid-19 vaccines. This sent battered UK shares — and the Cineworld share price — soaring. On 19 March 2021, they closed at 122p, up a stonking 401.6% to reach five times their October low. But they have since declined to close at 95.66p on Friday. CINE needs a boom Cineworld is the world’s second-largest cinema chain. At the end of 2020, it had 9,311 screens across 767 sites in 10 countries. It employs 30,000 people. In 2020, its revenues reached $4.37bn, but lockdowns crushed this to $852m in 2020. Even worse, the group lost $3bn last year ($212m profit in 2019). Net debt now stands at $8.3bn (£6bn). It’s clear why the Cineworld share price almost died. That said, there’s a big business with a sound operating model at the heart of Cineworld. All it would need to recover would be a film-going boom lasting from 2021 to, say, 2023 or beyond. If consumers go out and spend, spend, spend, this would be great news for the Cineworld share price. But that hope is under threat from the hyper-growth of streaming-video services that compete aggressively for consumer dollars and pounds. What next for the Cineworld share price? In the US, where Cineworld gets almost three-quarters (73%) of its revenues, cinemas have already reopened in several states. UK screens are set to follow next month, from 17 May. If film-goers do start splurging on popcorn and drinks, then the Cineworld share price might be an excellent recovery play. But the firm will need huge cash flows to meet gargantuan debt repayments. If I were a growth investor, I’d bet on CINE. But, as a veteran value investor, I’ll pass for now! FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 UK penny stocks I’d consider picking now Is Cineworld stock a good investment right now? Cineworld’s share price is slumping! Is now the time to buy as Netflix results flop? 2 FTSE 250 penny stocks I’d buy as the index hits new highs Top stocks to buy now: here’s 1 I like and 1 I’d avoid Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld (CINE) share price has dived 22% in 1 month. What next? appeared first on The Motley Fool UK.
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  8. Cineworld shares: why I won’t be investing (25/05/2021 - The Motley Fool UK)
    With almost 10,000 screens across its 790 sites worldwide, Cineworld (LSE:CINE) is the second-largest cinema chain in the world. It’s the UK’s biggest. Size doesn’t always matter, though, as Cineworld shares have been rocky for a long time now. Over the last few weeks, I’ve been weighing up whether I’m interested in investing in the company. Here’s what I decided. I’m not buying Cineworld shares In March of last year, I managed to attain Cineworld shares at market crash lows of around 35p. Soon after, I’d doubled my money. A few months later, I took a loss of about 20% out of concerns that the company wouldn’t recover from its October re-closure. It’s safe to say that I was wrong (in certain ways, anyway). By now, my initial investment would’ve doubled again. No need to dwell on it, though, because Cineworld shares are tumbling once again. Understandably, last year had a big impact on the cinema giant’s revenue. It ended up experiencing losses of £2.2bn. This is pretty severe for a company in an industry that was already far from thriving. It also resulted in almost £1bn more debt from that year alone. Cineworld now owes a total of around £6bn. As Kirsteen Mackay explains, Cineworld shares have been heavily shorted since before the pandemic. This lack of confidence from investors who are willing to bet on Cineworld’s failure makes it a risky investment. It also has the continued rise of online streaming to contend with. Things don’t look great for the cinema industry as a whole, let alone Cineworld. Disney+ has proven to be a hit, with over 100m paying subscribers able to view blockbusters whenever they want. Its Premier Access service also allows its audience to pay to see new films. This stops them from heading to the cinema. Should this become the new normal, Cineworld shares would be in serious trouble. The company also sparked controversy in October 2020 when many of its employees found out that they wouldn’t be returning to work via news headlines. This actually hasn’t had much of a long-term impact, but any further mistreatment of its employees be disasterous. We all know what happened when Deliveroo debuted on the London Stock Exchange just after its employees protested about working conditions. But it’s not all bad news All of that said, Cineworld is finally opening its doors again. Films like Godzilla vs Kong have already proven successful in the US, and soon enough we’ll be seeing huge, delayed films like No Time To Die released. If UK film fans realise they miss the big screen enough to say no to streaming, the group could generate healthy profits and begin to pay off its debts. Cineworld also currently offers a dividend yield of nearly 7%. This is a relatively attractive figure for investors looking for passive income, and not too much of a red flag for those concerned that Cineworld as a company might be in trouble. It’s possible that I’ll be eating my words like popcorn in 2022, but at the moment, I’ll be avoiding Cineworld shares like another Pirates Of The Caribbean sequel. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Cineworld share price is rising again. Should I buy now? Is the Cineworld share price a reopening opportunity? Will the Cineworld (CINE) share price rise with soaring seat sales? Short sellers are pushing the Cineworld share price down! Why now is a great time for me to buy Cineworld shares Dan Peeke has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld shares: why I won’t be investing appeared first on The Motley Fool UK.
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  9. What’s going on with the Cineworld (CINE) share price? (05/09/2021 - The Motley Fool UK)
    Since the middle of July, the Cineworld (LSE: CINE) share price has been treading water. It has traded in a range between 67p and 61p for much of the past two months as buyers and sellers have been fighting for control. Despite this recent tug of war, over the past 12 months, shares in the company have added 15%.  Considering its recent trading performance, I have been wondering what is going on with the Cineworld share price and if anything could drive the stock higher in the near term. Upcoming catalyst  The company’s performance in the first half of the year was dismal. The impact of global lockdowns took their toll on the enterprise. It reported an earnings before interest, tax, depreciation, and amortisation (EBITDA) loss for the period of $21.1m. Meanwhile, the group reported a monthly cash burn of $45m.  So far, there has not been much to attract cinemagoers back into theatres. However, that will change in the second half, with a slate of big blockbuster movies set to arrive on the big screen.  The long-awaited James Bond film, No time to die, is one of the most anticipated releases of the past few years, and Cineworld’s management will be looking to this title to provide a boost for the group in October.  What does this mean for the Cineworld share price? I think the market is waiting to see how cinemagoers react to these new releases before pushing the stock higher.  The group currently faces some significant challenges, including high levels of debt and the rise of online streaming. The company needs to prove that it still has something customers want, which could be pretty tricky.  Cineworld share price challenges The way I see it, investors are currently approaching the Cineworld share price with caution. It is facing significant headwinds, and the company needs to prove that it has what it takes to overcome these issues.  Management should provide an update on the company’s progress later in the year, and if this is positive, I expect the Cineworld share price to head higher.  However, if the update disappoints, investors could start to sell the stock again. After all, there are plenty of other recovery stocks on the market which are experiencing faster comebacks. Cineworld is not the only business that has recovery potential.  Considering all of the above, I would not buy the stock. I think it has been trending sideways because investors are waiting for further information from the company detailing its recovery. Unfortunately, at this point, when the company does update the market, there is no guarantee it will be a positive update. If cinemagoers fail to come back in large numbers, trading figures may disappoint, and this could even make it difficult for Cineworld to sustain its borrowing.  The post What’s going on with the Cineworld (CINE) share price? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Will September be a good month for the Cineworld share price? When will the Cineworld share price recover? Where will the Cineworld share price go in September? 3 reasons I think the Cineworld share price could rally in September Is Cineworld the best penny stock for me to buy right now? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  10. Cineworld share price zooms past 100p! Would I buy it now? (06/03/2021 - The Motley Fool UK)
    In hindsight, the pandemic’s impact on the stock market may appear quite short-lived. Consider Cineworld (LSE: CINE). Earlier this week, the Cineworld share price zoomed past 100p and has stayed at these levels since.  Let me put this in perspective.  Just before the stock market rally started in November last year, the Cineworld share price was at around 25p. It has risen by more than four times since. Let me give even more perspective.  The Cineworld share price is now back to its pre-stock market crash levels of March, 2020. In other words, if it maintains these levels, the company’s share would have successfully managed to put the stock market crash behind it.  Going by how much CINE has suffered during the pandemic, this would have appeared unlikely even six months ago. This is why I said at the beginning that the stock market impact of Covid-19 may appear short-lived when we look back.  Positives for the Cineworld share price But we do not know that for certain yet. When the economy reopens, we will know for sure how far business comes back to life.  I am optimistic though. Over 70% of Cineworld’s revenues are generated in the US. The US economy grew by a strong 4.1% in the last quarter of 2020. Its growth boom is expected to continue this year as well. If President Biden’s fiscal stimulus of $1.9trn comes in, the surge in the economy could be well beyond what is expected now.  Where the money goes is also important. As long as it finds its way to low-to-middle income households, as is expected, spending could increase substantially.  This in turn, would be good for entertainment companies like Cineworld. Cinema is a relatively inexpensive form of entertainment, which goes in its favour.  Moreover, there is a lot of pent-up-demand for recreation. A good example of this is the surge in holiday travel bookings easyJet saw as soon as the phased end to the UK’s lockdown was announced recently.  What can go wrong The US fiscal stimulus plan isn’t certain, nor is it certain that it will have the intended effect. And a year of pandemic living, including uncertain income may encourage us to focus more on saving, which could have a negative effect on Cineworld’s profits. I am also concerned Cineworld’s debt levels. They were already high pre-pandemic and are higher still now. I think it is safe to assume that it will be a while before it can pay off its loans. The good thing, though, is this. I reckon creditors will be understanding right now. And if we are talking of a roaring ‘20s comeback, this may well be the best time there is for Cineworld to get out of its funk and get its finances back on track. But I think it is important to remember that even pre-Covid 19, the Cineworld share price was falling. I think it is time to start thinking about why it got into that position again.  The takeaway I think it would be beneficial in this case to check share price forecasts given the already sharp run-up in share price. I am making some calculations of my own right now to see how far the Cineworld share price might go. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Cineworld share price is up 250% in four months! But I’m not buying The Cineworld share price has soared 300%! Should I buy now? Why I’d ignore the Cineworld share price and buy other UK shares for my ISA Cineworld and easyJet shares: should I buy the reopening trade? I’d ignore the Cineworld share price and buy this US stock for my ISA instead Manika Premsingh owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld share price zooms past 100p! Would I buy it now? appeared first on The Motley Fool UK.
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  11. The Cineworld share price is rising again. Should I buy now? (25/05/2021 - The Motley Fool UK)
    It was a day that Cineworld (LSE: CINE) shareholders have long awaited. At the weekend, the cinema chain reopened its doors across the UK. The Cineworld share price response was cautious, up around 10% since the start of the week. But it is still down from March’s peak. And over the past two years, the Cineworld share price has lost 70%. It had been falling even before Covid-19 arrived, as producers have been moving more to direct-to-video releases. So how was the reopening? From an update Monday: “Cineworld is pleased to report a strong opening weekend in the UK, led by the success of Peter Rabbit 2: The Runaway. This weekend’s performance went beyond our expectations as customers were eager to return to the movies and enjoy the full movie experience, including the traditional popcorn which led to strong concession income.” The company added that 97% of its US cinemas are now open, Poland and Israel will be opening within the week, and “the company anticipates that most of its cinemas will be open by the end of the month“. This is all good. But what does it mean for the Cineworld share price? Back to profits this year? For me it means wait and see. In 2019, Cineworld recorded a pre-tax profit of $212m. That was wiped out in 2020, with a lurch to a $3bn loss. It’s a one-off, of course. And I do think there’s a pretty good chance of Cineworld getting back to pre-pandemic profit levels before too long. That’s as long as vaccination programmes continue, and we don’t face any resistant new variants. Any sign of new lockdowns could hammer the stock again. So the outlook is brightening. But the shutdown has left Cineworld with one lasting legacy, and it’s not a good one. I’m talking of debt, which must surely remain hanging over the Cineworld share price for a good few years. The thing is, even if it gets back to 2019 profitability, Cineworld will simply not be worth as much. A company with much bigger debt, other things being equal, just isn’t as valuable as one with less. Cineworld share price tempting now? The net debt pile stands as high as $8.3bn now. That’s nearly 40 times 2019’s pre-tax profit figure. And it’s more than six times the company’s market capitalisation. On the upside, Cineworld appears to have a strong enough balance sheet to keep it going. It has also just received a US tax refund of $203m, which alone almost reaches that 2019 profit level. So, I don’t see any real likelihood now of Cineworld running out of cash. The possibility of needing to raise more funding is, I think, greatly reducing. And the chance of the company going bust? Well, I just don’t see that at all. So does today’s Cineworld share price tempt me? I’d like to think some of my investment money was in an arts industry that I love. But with debt levels like this, it’s not going to be with Cineworld. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the Cineworld share price a reopening opportunity? Will the Cineworld (CINE) share price rise with soaring seat sales? Short sellers are pushing the Cineworld share price down! Why now is a great time for me to buy Cineworld shares Will Cineworld shares ever be worth buying? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld share price is rising again. Should I buy now? appeared first on The Motley Fool UK.
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  12. The Cineworld share price is down 50%: time to buy? (17/07/2021 - The Motley Fool UK)
    When I last wrote about FTSE 250 cinema group Cineworld (LSE: CINE), the shares were close to a 12-month high of 125p. Since then, Cineworld’s share price has fallen by almost 50%. At around 65p, the shares are now just 10% higher than they were a year ago. With cinemas open for business again, I’ve been taking a fresh look at this situation. Is Cineworld now a turnaround buy? Here’s the good news During the pandemic, doomsters predicted that no-one would ever go to the cinema again. Instead, we’d all stay at home on our lonesome, watching Netflix on TV. I didn’t think that was likely — but was I right? When Cineworld reopened its UK cinemas in May, the company said that attendance had gone “beyond our expectations,” including “strong concession income.” For a broader and more recent view, I’ve been looking at the latest box office stats from the UK Cinema Association. According to this trade group, the top 10 films shown in the UK generated £61m of box office revenue in June. By comparison, the average monthly box office in 2019 was £104m. Based on these figures, I’d suggest that a recovery is already well under way. I certainly don’t see any reason to predict the end of the cinema. I reckon Cineworld’s next trading update should contain some encouraging news on customer numbers. Is the $8bn debt mountain still a risk? I’ve talked a lot over the last year about the risks I see for shareholders as a result of Cineworld’s $8.3bn net debt. An emergency fundraising would almost certainly have caused Cineworld’s share price to crash. I’m still not comfortable with the group’s debt levels, but I think the risks for shareholders are much lower than they were. Unless cinemas are forced to close again, I think Cineworld will probably manage to avoid any major refinancing. It’s worth remembering that CEO and deputy CEO Mooky and Israel Greidinger also have a powerful reason to avoid issuing new shares. They aren’t just hired managers — they own about 20% of Cineworld. Raising funds by selling new shares would mean having to put in fresh cash themselves or see their holding diluted. I reckon they’ll try hard to avoid this. Cineworld share price: a bargain buy? We don’t yet have any figure on Cineworld’s trading since its UK and US cinemas reopened. The key question for me is whether the company is getting enough customers to cover its cash operating costs. Industry analysts seem to be cautiously optimistic. The latest broker forecasts suggest that Cineworld will see a cash outflow of £135m this year but will generate about £440m of surplus cash in 2022. Based on these numbers, I think Cineworld’s share price is getting close to a level where it could offer good value. Considerable risks remain — we aren’t out of the pandemic yet and further restrictions are still possible. But I reckon Cineworld’s movie-mad bosses have probably pulled off a difficult survival trick. However, I have to admit I still won’t be buying Cineworld shares. Even if they start to fall next year, the group’s debt level will remain higher than I like to see. For me, CINE stock is just a little too risky. The post The Cineworld share price is down 50%: time to buy? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Cineworld share price is down 33% in one month! Should I buy? The Cineworld share price continues to slide. Should I buy now? Why is the Cineworld share price falling? Cineworld’s share price slumps to 5-month lows! Is now the time to buy? Move aside AMC, Cineworld shares could be the next meme stock Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  13. Meme stock investing: 2 top shares to buy right now (05/08/2021 - The Motley Fool UK)
    2021 may go down in history as the year of the meme stock. Indeed, the rise of meme stock favourites such as AMC Entertainment, GameStop, and BlackBerry (NYSE: BB) has been incredible to watch. Some significant moves in certain stocks have grabbed a lot of attention of late. Accordingly, questions remain as to whether such meme stocks are worth considering right now.  In this article, I’m going to highlight two stocks that are on my watch list right now. These are meme stocks (or potential meme stocks) that I think have excellent upside in their own right, aside from the meme stock trend. Meme stock watch: Cineworld While not necessarily being a meme stock yet like sector peer AMC, Cineworld  (LSE:CINE) certainly is a comparable company. And I think it’s a possible meme-stock-in-waiting. With pandemic restrictions ended, reopening is key for both cinema operators. As we all yearn for dinner and a movie, expectations are that both will perform well over the near term. Cineworld has seen a big price swing in a relatively short amount of time. The shares went from around 25p in late 2020 to nearly 125p early this year. Currently, Cineworld shares are up over 64% compared to their price of a year ago. So it’s trending in the right direction. Yet Cineworld is also one of the most-shorted UK shares right now, meaning there are plenty of experienced investors betting it will fall. Given its relatively low price per share and high short interest, Cineworld exhibits some key meme stock traits. Should the price fall, this is a stock I’ll be considering for my portfolio. Of course, there are still concerns around how robust its recovery will be. New Covid variants could see a return to lockdown measures, which could mean cinemas having to close again. Should additional lockdowns be imposed, Cineworld is one UK share that could suffer. These are risks I’m monitoring closely with Cineworld shares and it’s not a Buy for me at present. BlackBerry One company that comfortably falls into the meme stock category is BlackBerry. This former smartphone-maker-turned-software-company has been on my watch list for some time. BlackBerry’s meteoric rise this year was the result of two key catalysts, I feel. Of course, frenzied retail buying played a huge role in taking BlackBerry shares from around $5 per share in late 2020 to nearly $30 in January. This was one of the first meme stocks, and continues to hold this title. However, in late 2020, BlackBerry also announced a key partnership with Amazon to develop BlackBerry IVY. This is a scalable, cloud-connected software program aimed at car manufacturers. This platform allows for real time data and analytics functionality to improve the passenger experience in the connected car market. Given the growth we’ve seen in this sector, this is something I’ve been excited about since late last year. That said, BlackBerry remains a turnaround stock. The company’s transition to a pure software business hasn’t been as smooth as I’d like to see. In fact, two of the past four earnings reports undershot revenue expectations.  However, this is also a company with excellent long-term growth prospects relating to its Amazon partnership and exposure to the connected vehicle market. Sure, there’s potential near-term potential. But I’m thinking longer term with this stock, and watching it closely. The post Meme stock investing: 2 top shares to buy right now appeared first on The Motley Fool UK. Like these two meme stock plays? Here’s a top growth share to consider right now: FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Cineworld share price is falling! Is now the time to buy? Is the tumbling Cineworld share price a buying opportunity? How the Cineworld share price compares to Netflix The Cineworld share price could fall further and here’s why Cineworld’s share price: why I would, and wouldn’t, buy this UK share today Chris MacDonald has no position in any stocks mentioned in this article. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended BlackBerry and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  14. Is the Cineworld share price too cheap to miss? (09/09/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price has risen by a healthy 28% over the past 12 months. But after touching its 2021 peaks near 125p in March, demand for the UK leisure share has cooled significantly. It was last trading just below the 70p-per-share marker. Does this provide a great dip buying opportunity for long-term investors looking for turnaround shares? City analysts think Cineworld will reduce pre-tax losses to around $579m in 2021, from above $3bn last year. And they think the cinema chain will bounce back into the black, with profit of $66m in 2022. Reasons why prices could soar again There are several strong reasons why the Cineworld share price could jump again and keep rising. These include: Signs of continued strong customer demand. Recent box office news has been extremely encouraging on both sides of the Atlantic. In Cineworld’s core US and UK markets, cinema attendance figures are already back to around 50% of pre-pandemic levels, data shows. It suggests that the public’s long-running love of watching films on the big screen remains in tact. Takings could soar from Q4. A strong end to 2021 is possible and that could give a fresh boost to Cineworld’s share price. A robust schedule of new releases from several money-spinning franchises including The Matrix, Spider-Man and James Bond exists for the next few months. And the crowd-pullers are set to keep coming over the next 12 months as the Covid-19-related release backlog is steadily cleared. Steps to improve liquidity continue. Concerns over Cineworld’s survival have remained high ever since it warned of its struggle to remain a “going concern” in March 2020. But the business has been taking regular steps to keep bolstering the balance sheet, and it secured $200m worth of loans in late July. Is Cineworld’s share price still too high? All that being said, the risks to Cineworld and its share price remain significant. First and foremost the business still has an enormous amount of debt on its books ($8.4bn as of June). This costs a fortune to service and could severely hamper its growth strategy long into the future. Naturally, this is particularly dangerous as Covid-19 cases in the US and the UK rise sharply again. A mass closure of Cineworld’s theatres in response could push the business to the brink under the weight of this debt. Then there’s the long-term threat posed by increasing demand for other entertainment forms. The growth of streaming, as the likes of Netflix invest in technology and programming, is one obvious danger. Though other fast-growing forms of entertainment like video gaming pose another problem for Cineworld and its peers. I don’t think Cineworld’s share price fully reflects these dangers. In fact a price-to-earnings (P/E) ratio approaching 30 times makes it look pretty expensive. There’s plenty of other lower-risk UK shares I’d rather buy right now, like the following tech titan. The post Is the Cineworld share price too cheap to miss? appeared first on The Motley Fool UK. One Killer Stock For The Cybersecurity Surge Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028 — more than double what it is today! And with that kind of growth, this North American company stands to be the biggest winner. Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it… We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify. Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time… More reading The next post-pandemic revival? Why I’d take a punt on Cineworld shares Cineworld: what’s going on with this penny stock? What’s going on with the Cineworld (CINE) share price? Will September be a good month for the Cineworld share price? When will the Cineworld share price recover? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  15. London Markets: Cineworld shares slump following Warner Bros. deal, but theaters to open in time for ‘Godzilla vs. Kong’ (23/03/2021 - Market Watch)
    Shares in Cineworld slumped as much as 8% in London on Tuesday, as the group announced the details of a new deal with Warner Bros. and outlined plans to reopen in the U.S. and U.K.
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  16. Is the Cineworld share price a reopening opportunity? (25/05/2021 - The Motley Fool UK)
    My local cinema is a Cineworld (LSE:CINE), which I plan to visit soon. It’s been a terrible time for the Cineworld share price and its business as a whole since the market crashed. With reopening in full effect, is Cineworld a recovery play? Cineworld share price downs and more downs Cineworld is the world’s second-largest cinema chain with over 9,000 screens in 10 countries and a workforce of over 30,000. In 2020, Covid-19 forced the business to grind to a catastrophic halt. Performance was affected massively. To provide a snapshot, revenue between 2019 and 2020 fell by a mammoth 80% from $4.37bn to $852m due to lockdowns and closed cinemas across the world. The Cineworld share price has experienced a roller-coaster ride due to the pandemic and poor performance. The past two months have seen it fall by over 20% from 122p to 96p per share, which is the price as I write. The past 12 months has actually seen a price increase of close to 40%. This time last year shares were trading for 69p per share. Rewind to two years ago, and the Cineworld share price was flying high at well over 310p per share. This was an all-time high. By May 2020, it had fallen to less than 60p per share.  Recovery play option? As a Foolish investor, I always look to invest for the long term. In the case of Cineworld, it would have to be VERY long term. Pent-up demand could definitely play a part in increasing seat sales and getting Cineworld back to its former glory. The Cineworld share price did creep up when the vaccination programme was announced back in November. As the rollout continues, I expect its share price to continue on an upward trajectory too. From a financial point of view, Cineworld will be weighed down by a debt of over $8bn. On the other hand, it does have plenty of cash and liquidity to support it through its recovery. In a trading update yesterday, Cineworld announced a $203m tax refund from the US government, which will boost the coffers. In addition, Cineworld reported that ticket sales for new movies coming out were strong. The sheer size and footprint of Cineworld’s operation does offer it an advantage and the ability to recover from a challenging period quicker than other firms in the leisure industry. My verdict The Cineworld share price comes with its own risks. To be specific, Cineworld’s debt level does concern me. It will take a number of years of normal trading to put a dent in that type of debt. And what does normal trading mean? Pre-Covid-19 levels of trading would be ideal but that’s the other risk here. With the risk of additional Covid-19 variants, Cineworld could find itself facing local and national restrictions once more and be forced to close its doors. Then there is the risk of competition and the rise of streaming services such as Netflix gaining market share rapidly.  Overall, I can understand why others believe Cineworld could be a good recovery play. The Cineworld share price is cheap at current levels and as a business has the ability to recover eventually. I would not buy it for my own portfolio right now as I believe there are better recovery options out there. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Will the Cineworld (CINE) share price rise with soaring seat sales? Short sellers are pushing the Cineworld share price down! Why now is a great time for me to buy Cineworld shares Will Cineworld shares ever be worth buying? As the UK reopens, is the Cineworld share price a bargain? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Cineworld share price a reopening opportunity? appeared first on The Motley Fool UK.
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  17. Should I buy Cineworld shares at 82p? (29/06/2021 - The Motley Fool UK)
    Cineworld (LSE: CINE) shares are currently trading around the 82p mark. The stock did pass the 100p threshold earlier this year, but the share price has been declining since then. I’m not tempted to buy Cineworld shares just yet. While the easing of lockdown restrictions is certainly good for the cinemas operator, I still have concerns, which I’ll cover now. Most shorted stock I regularly track which UK stocks are being shorted. This is just a fancy way of saying investors are betting that a particular share price is going to fall. So if a company has a high short position, it means that investors are negative on its future prospects and don’t expect the stock to rise. With this in mind, Cineworld shares have a short position of 7.4%. To put this in perspective, according to shorttracker.co.uk, this makes it currently the most shorted stock on the London Stock Exchange. In fact, what I find concerning is that the short position has been increasing over the past few months. As I said, Covid-19 restrictions have eased somewhat. So naturally, I’d think this would be positive for Cineworld shares. But this hasn’t been the case. And the fall in the stock price could be explained by the increasing negative sentiment and short position. Broker views Another thing I tend to look at is current broker views. This gives me an idea of what institutional investors are thinking about particular stocks. An upgrade or lowering of price targets, as well as the accompanying views, give me a lot of insight. Last week, comments from investment bank Berenberg caught my eye. It upped its price target for Cineworld shares to 85p from 70p but still maintained its ‘hold’ rating. What I found interesting was how it believes that the stock is “almost certainly the wrong price” and that there are still “too many unknowns” about the company’s outlook. It evens added that “we struggle to have much conviction about what is likely to happen next, and the limited guidance from Cineworld (particularly on its priorities for cash in the coming years) only makes it more difficult”. In short, even the analysts are unsure about which direction Cineworld shares are going to take next. This is clearly reflected in the ‘hold’ rating. Cineworld shares: should I buy? The stock is on my watch list. I personally feel that cinemas have a big role to play in the movie industry, even if it’s not the all-powerful role it once was. But times are changing with the growth of streaming platforms like Netflix. In fact, I believe the black swan event that is Covid-19 has caused a fundamental shift in how films could be distributed going forward. I don’t think it’s game over for Cineworld, but it needs to re-evaluate a lot of things. However, there’s a bright side too. The company released an update in May and this was positive. Most of its US cinemas are now open and its expects a recovery in attendance over the coming months. Big movie releases should also help, as seen with the success of Cruella and A Quiet Place 2. But for me, the risks outweigh the potential rewards. So I’m not buying Cineworld shares just yet. The post Should I buy Cineworld shares at 82p? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 penny stocks to buy in July Is the Cineworld share price about to make a comeback? Cineworld shares are up 273% in 8 months. Am I too late to buy? Is this UK penny stock worth buying? 1 penny stock I’d buy instead of AMC Entertainment shares Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  18. The Cineworld share price is tumbling today. Could it be a contrarian FTSE buy? (25/03/2021 - The Motley Fool UK)
    It’s been more than a year since I went to a Cineworld (LSE:CINE) cinema. Today saw preliminary full-year results released by the FTSE 250 firm. I wasn’t expecting much but I was surprised to see the Cineworld share price lose nearly 10% today so far, as I write. Is there an opportunity here for the VERY long term? Cineworld share price woes I could buy shares in Cineworld for 181p per share in mid-February 2020. By the end of March, shares were trading for a paltry 36p per share. This is a mammoth 80% drop. Since that low point, the Cineworld share price has fluctuated with restrictions easing over the summer and then going back into lockdown. The news of Covid-19 vaccinations signalled a potential lifeline for the beleaguered FTSE 250 firm too. Less than two weeks ago, shares were trading for 122p per share but it seems recent preliminary results have hit the share price hard once more. Preliminary results Cineworld has been forced to close it sites from mid-March last year. Naturally, results and performance will reflect this, but I think they are worse than first anticipated.  Revenue fell by over 80% to just over $850m. A mammoth loss of £3bn for 2020 will have played a part in the Cineworld share price falling sharply today. In 2019 it reported a pre-tax profit of over $210m. The FTSE 250 firm did attempt to reduce costs and preserve cash, however. Despite these measures, it was forced to seek funding to keep the lights on. It brought in over $800m in additional liquidity. Furthermore, it today announced an additional $231m from investors to see it through 2021. To provide a snapshot of just how much the last 12 months or so has affected Cineworld, it reported that there were just over 50m ticket admissions over this results period. The previous year, there were 275m. A FTSE contrarian investment or one to avoid? The Cineworld share price has been battered and bruised over the past 12 months. But with its sharp decline today, I’m trying to think about post-Covid-19 life and trading for CINE and whether I could pick up a great reopening contrarian buy. I do believe Cineworld will experience pent up demand. Many people are itching to enjoy the silver screen experience once more. In addition to this, there are lots of blockbuster movies that have been delayed and will come out once normality resumes so there could be a surge in performance at that time. Furthermore, Cineworld reported theatrical industry in other parts of the world has performed well since reopening. These include China, Japan, and Australia. Overall, I am not confident enough in the Cineworld share price or its overall investment viability right now. I do acknowledge its dip today was slightly more than expected, which presents a potential opportunity. Cinemas may also have a battle on their hands to regain customers from streaming giants who have gained so much more traction in the pandemic period. I don’t view Cineworld as a FTSE contrarian buy. In fact, if I am looking to invest in something a bit different, here is one stock I prefer and think will benefit from reopening. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Cineworld share price bounces back from 88p! Would I buy this stock today? Here’s why Cineworld share price is crashing today This is why I’d ignore the Cineworld share price and buy other cheap UK shares! 1 stock I’d buy and 1 I’d avoid for my Stocks and Shares ISA Cineworld shares dip on reopening news: what I’d do now Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld share price is tumbling today. Could it be a contrarian FTSE buy? appeared first on The Motley Fool UK.
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  19. The next post-pandemic revival? Why I’d take a punt on Cineworld shares (08/09/2021 - The Motley Fool UK)
    UK cinemas were hammered by the pandemic: 2020 admissions were down by 75% and, as of July, seat occupancy was only 57% of pre-Covid levels. You might think this is a risky way to start an article extolling the virtues of Cineworld (LSE: CINE) shares, but bear with me – I think that after a sluggish start, cinemas will see a post-pandemic bounce-back. Of all the industries shaken by the pandemic, cinemas are showing a particularly slow recovery. London office leases and hospitality were both hit hard by Covid-19 restrictions, but are seeing a resurgence (just see British Land and JD Wetherspoon’s share performance). Cineworld share prices, on the other hand, have still shown little sign of recovery, sitting at 66.20p as I write, down from 181.45p in February 2020. But I still think the future looks brighter for the cinema chain. Ticket sales are driven by big name releases, and blockbuster showings of the new James Bond and Top Gun: Maverick later in the year may be enough to tempt visitors back to the big screen. Before the pandemic, the industry was also looking healthy: 2018 and 2019 were bumper years, and Cineworld offered investors a healthy dividend yield of 4.8% until the pandemic hit. The end of social distancing and capacity limits and the possible introduction of vaccine passports later in the year may also encourage visitors to return to the pictures in greater numbers. But Cineworld shares are not without risks, and it looks as though the next few weeks could be particularly choppy. Cineworld is carrying a heavy debt burden, not helped by lease modifications last year, and revenues plunged in the pandemic from £4370m in 2019 to £852m (and a loss of £36m) in 2020. The chain has also been bolstered by government support, and has to now shoulder both the end of furlough and an end to VAT reductions on cinema tickets. Streaming also became more popular over the past 18 months, with giants such as Disney Plus releasing new titles straight to digital download. Though a UK company with a UK listing, Cineworld also announced in August that it was considering a partial US listing for its subsidiary, Regal, which would allow it to access liquidity: Cineworld shares rallied by 7% as a result of the announcement. Although the CEO denies any link, there is an outside chance that Cineworld could become a ‘meme stock’ like its larger rival AMC. This cinema operator saw share prices soar when investors used social media to encourage others to purchase the stock, damaging institutional investors who had taken a bet against AMC. And with pent-up customer demand and a slew of blockbuster releases this autumn, I suspect that Cineworld shares could also prove to be down but not out… The post The next post-pandemic revival? Why I’d take a punt on Cineworld shares appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Cineworld: what’s going on with this penny stock? What’s going on with the Cineworld (CINE) share price? Will September be a good month for the Cineworld share price? When will the Cineworld share price recover? Where will the Cineworld share price go in September? Hermione Taylor does not have a position in any of the shares mentioned. The Motley Fool UK has recommended British Land Co. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  20. Is the Cineworld share price about to make a comeback? (14/06/2021 - The Motley Fool UK)
    The pandemic has decimated several industries. And one of the hardest hit is the entertainment sector. With lockdown restrictions preventing individuals from going out and enjoying various experiences, companies like Cineworld (LSE:CINE) have seen their share prices plummet as they struggle to remain afloat. But with lockdown restrictions being eased and the vaccine rollout progressing relatively quickly, is Cineworld about to make a comeback? Let’s take a look. The potentially bright future for the Cineworld share price The sharp decline in Cineworld’s revenue stream was not due to a sudden lack of interest from customers. But rather from lockdowns restrictions that forced cinema doors to remain closed to the public. However, after more than a year of being stuck at home, I think it’s reasonable to say the demand to return to the big screen experience could be high. And based on recent movie performance, it seems I might be right. In late March this year, Godzilla vs Kong vastly outperformed expectations even when an alternative streaming option was provided. More recently, the Cineworld management team released a company update that stated Peter Rabbit 2 has also beaten performance expectations and helped achieve a significant boost in concession income (popcorn, nachos, drinks and the like). Needless to say, this is fantastic news. Today, around 97% of Cineworld’s cinemas have reopened. Combining this with the vast line-up of delayed films, the second half of 2021 could be the start of a turnaround for Cineworld and its share price. But there are still some risks to consider. An uncertain future The recent recovery progress made by the Cineworld management team is promising. Yet the share price has remained nearly flat on the news. In fact, since March this year, the stock has been falling. But it’s worth noting that over the last 12 months, it’s up by just over 10%. Considering the business is in a far better financial position than a couple of months ago, thanks to the income generated from new and returning customers, why is the share price still falling? As far as I can tell, many investors are concerned about the risks the company faces today. The most prominent is an exceptionally high level of debt that surged last year as the business was forced to borrow more money to keep the lights on. 2020 also proved how susceptible the company is to lockdown restrictions. With mounting fears of a potential third-wave of Covid-19 infections, if new lockdown restrictions were to be imposed, I think the damage to Cineworld and its share price may be enormous. The bottom line All things considered, my views on Cineworld are essentially unchanged, even with the latest updates provided by the management team. On the surface, the business appears to be making a swift recovery. But underneath is a feeble balance sheet that might begin to crumble if Covid-19 infection levels rise again. I feel the risk does not match the potential reward and the share price could stay weak. And therefore, I still won’t be adding the shares to my portfolio today. The post Is the Cineworld share price about to make a comeback? appeared first on The Motley Fool UK. Instead, I’d much rather invest in this… One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Cineworld shares are up 273% in 8 months. Am I too late to buy? Is this UK penny stock worth buying? 1 penny stock I’d buy instead of AMC Entertainment shares Why isn’t the Cineworld share price rising faster? What’s happening to the Cineworld share price? Zaven Boyrazian does not own shares in Cineworld. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  21. I’ll avoid the Cineworld share price. Here is a pick from my best stocks to buy now list instead (09/02/2021 - The Motley Fool UK)
    The Covid-19 pandemic has battered the Cineworld (LSE:CINE) chain. In turn, the Cineworld share price has fallen sharply over the past year or so. With no end to restrictions in sight, I am not willing to gamble any money on CINE. Instead, I really like international packaging firm DS Smith (LSE:SMDS), which is on my best stocks to buy now list. Cineworld share price woes Rewind to this time last year, and I could pick up shares in Cineworld for 179p per share. As I write, shares are trading for 73p, which is nearly a 60% decrease. New Covid-19 variants and vaccine rollouts have dominated the headlines in 2021 so far. Despite this gloomy start, the Cineworld share price has enjoyed a better start to 2021. To date, it is up nearly 20% since trading kicked off. Here’s why I don’t see Cineworld as a viable investment for my portfolio right now. The new Covid-19 strains are concerning and may mean more lockdowns in the future. Next, the Cineworld share price has been battered by to the fact it has had to raise so much money just to keep the lights on. Finally, I feel cinemas have a battle on their hands to regain customers from the streaming giants. Netflix, Amazon, and Disney have all seen hikes in subscription numbers. On the other hand, cinemas could reopen sooner than I expect. And when it does happen, people could flock to the big screen again, eager for an opportunity to get out of the house and enjoy the latest blockbuster with friends. DS Smith In contrast, I believe DS Smith is a good stock pick right now. Increasing online shopping numbers means there is a huge need for e-commerce, packaging, warehousing, and distribution. Some of my best stocks to buy now are from this category, such as Clipper Logistics and Tritax Big Box REIT.  Unlike the Cineworld share price, the DS Smith share price has flourished in recent months. Since the height of the market crash back in March, SMDS is up nearly 40%. SMDS has an industry-leading record of innovation. Many of its packaging products are used across a variety of retail sectors, which helps diversify its offering. In its December half-year report, DS Smith reported it will resume its dividend. In addition, it reported an increase of 16% in cash flow compared to the same period last year. This gives it a robust balance sheet and lots of liquidity. Volume in packaging increased over 3% too. Of course, there is a risk that earnings could come under pressure, especially if a slow economic recovery impacts broader consumer spending levels. Best stocks to buy now or Cineworld gamble? If I were more of a contrarian, I might consider Cineworld. It does have the potential to recover. But the uncertainty in terms of how long it could take unsettles me. As of right now, I’m avoiding the Cineworld share price and instead continuing to investigate picks from my best stocks to buy now list. Here is another from my list I really like. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I’d ignore Cineworld and buy other cheap UK shares for my ISA! The Cineworld share price is up 20% in a month: should I buy? Cineworld’s share price is rising. Should I buy the stock now? Should I buy Cineworld shares today? 2 of my favourite UK shares to buy in an ISA after the 2020 stock market crash Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended DS Smith. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’ll avoid the Cineworld share price. Here is a pick from my best stocks to buy now list instead appeared first on The Motley Fool UK.
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  22. Short sellers are pushing the Cineworld share price down! (24/05/2021 - The Motley Fool UK)
    The Cineworld (LSE:CINE) share price has had a reasonably good start to 2021, increasing by more than 40% year to date and up nearly 50% over the last 12 months. However, over the past couple of weeks, the stock has been on a downward trajectory. Despite the initial allure of cinemas reopening in the US and UK, it seems investors are growing more sceptical of the firm’s ability to make a successful recovery. In fact, a closer look reveals a rise in short positions being placed against the Cineworld share price that correlates with its recent poor performance. Do these short sellers know something I don’t? The bear case for the Cineworld share price Today, 7.38% of Cineworld shares are being sold short. And that number appears to be rising with each passing week. This means that various funds and individuals are betting that the Cineworld share price will fall. The level of short positions is much less than the 14% recorded during 2020. But it is still quite significant when compared to the pre-pandemic level of 3.5%. Short selling can end quite badly if an investor is wrong. However, in the case of Cineworld, there are some valid reasons to be sceptical about its share price. The company has employed an acquisitive growth strategy for many years. This did enable it to become the second-largest cinema chain in the world. However, as a consequence, it racked up a lot of debt, which was further increased once the pandemic hit. As of the end of 2020, Cineworld had $8.3bn of debt & equivalents on its balance sheet versus a cash war chest of merely $337m. Needless to say, the firm is highly leveraged. And even before the pandemic made things worse, the company saw most of its operating profits disappear simply to cover interest expenses. It’s not all bad news Cineworld is hardly in the best financial health at the moment. And while I believe this will remain an issue for several years to come, there are reasons to be optimistic. After a year in lockdown, there appears to be a substantial build-up of demand from movie-goers to return to the big-screen experience. Godzilla vs Kong was released in late March this year when a large portion of Cinemas remained closed. And despite Warner Bros offering a home streaming option, the film outperformed expectations by a significant margin. With a long list of delayed titles finally making their debut this year, it looks like Cineworld is about to enjoy the return of a steady flowing income. And provided there are no further disruptions to its operations, the Cineworld share price may be able to begin climbing again. Time to buy? All things considered, I’m not interested in owning shares in this business. The enormous pile of debt adds a considerable level of risk. And this appears to be the catalyst driving the increasing number of short positions. Only time will tell whether the Cineworld share price can make a successful recovery. But personally, I’ll be looking elsewhere for growth opportunities. For example, here is… One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Why now is a great time for me to buy Cineworld shares Will Cineworld shares ever be worth buying? As the UK reopens, is the Cineworld share price a bargain? Why I’m buying this absurdly cheap FTSE 250 stock this month The Cineworld share price is below 100p. Is now a buying opportunity? Zaven Boyrazian does not own shares in Cineworld. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Short sellers are pushing the Cineworld share price down! appeared first on The Motley Fool UK.
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  23. Will a US listing help the Cineworld share price? (10/09/2021 - The Motley Fool UK)
    Cineworld (LSE: CINE) share price jumped at the beginning of August after the company reported its results for the first half. The results themselves were pretty awful. However, the market was focusing on management’s statement that the company was considering several strategic options for raising cash, including a US listing.  In particular, the update noted that following the acquisition of Regal in 2018, the US now accounts for a “substantial majority” of group revenues. This market also “remains a key market for future growth.“ It went on to add that the US capital markets are the “largest and most liquid in the world.” They also include a “large number of publicly listed cinema companies including peer group companies.“ These US-listed companies are “typically covered by a significant number of North American equity analysts with a wide domestic investor following.” Therefore, the firm is considering “options to maximise shareholder value.“ These may include a “listing of Cineworld or a partial listing of Regal in the US.“ The US option  It seems to me as if Cineworld management has been watching rival AMC‘s share price performance over the past 18 months. Frenzied investor buying sent shares in the cinema company surging at the beginning of the year. This allowed the corporation to issue more stock and raise cash to strengthen its balance sheet.  Even though the two businesses are roughly comparable, the lacklustre performance of the Cineworld share price means the company is valued at less than £900m today. AMC is worth nearly $25bn (£18bn).  If management does pursue a US listing, Cineworld’s valuation could re-rate higher. Compared to AMC, the stock could be worth more than 10 times its current price, in the best-case scenario.  But this isn’t guaranteed. Just because investors have been happy to buy into AMC recently, doesn’t mean they’ll repeat this performance with Cineworld. Indeed, much of the buying in AMC has been from smaller retail investors who’ve been using leveraged bets via the options market. This might not be sustainable.  The outlook for the Cineworld share price  That said, a US listing or spin-off could provide the group with a much-needed cash infusion. With around $5bn of debt and interest costs totalling $343m in the first half, Cineworld’s financial position is concerning. If a US listing provides cash to pay down debt, the company’s financial position could change significantly. It may also drive a faster return to profitability.  While there’s no guarantee a US listing will help the Cineworld share price, I think, on balance, if the company can raise money and reduce debt, the outlook for the enterprise will improve significantly. And this may convince the market that the group deserves a higher valuation.  Still, despite this potential, I wouldn’t buy the corporation for my portfolio today. I think its outlook is far too uncertain, and there are other companies I’d rather own in my portfolio.  The post Will a US listing help the Cineworld share price? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Cineworld shares are down 7% this week. Should I buy the dip? Is the Cineworld share price too cheap to miss? The next post-pandemic revival? Why I’d take a punt on Cineworld shares Cineworld: what’s going on with this penny stock? What’s going on with the Cineworld (CINE) share price? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  24. Cineworld shares: 3 reasons I bought them  (22/07/2021 - The Motley Fool UK)
    Cineworld (LSE: CINE) shares were up 15% yesterday, making it among the biggest FTSE gainers. This shows the extent of recovery possible for the stock in a really short period of time. And I reckon there is more to come.  The FTSE 250 cinema chain has been highly sensitive to investor sentiment in the past year. It did not help that last week the markets had a mini meltdown as coronavirus infections grew once again. Even with the latest increase, its share price has fallen by almost 30% from early July, at least partly because of this.  But I do believe that the worst may just be over for Cineworld shares. Here is why.  #1. Improved market sentiment Market sentiment is back up, indicating that the meltdown was a brief scare rather than a real sign of a market crash. The FTSE 100 index is back around 7,000 today. This should bode well for all stocks. But it is especially good for relatively volatile stocks like Cineworld, as is evident in its strong performance on Wednesday.  Moreover, as populations around the world are being vaccinated, we are better protected against the pandemic. This is particularly encouraging for Cineworld, whose dominant markets are the US and the UK. In both of them, at least 50% of the people have had the jab.  #2. Improved prospects Besides this, early indications of performance post reopening have been encouraging. In May, when cinemas reopened in the UK, Peter Rabbit 2, proved to be popular among audiences. Cineworld said that it had surpassed expectations.  More recently, company CEO, Mooky Greidinger, has expressed satisfaction with the opening performance of superhero movie Black Widow. The Disney movie was simultaneously streamed on the producer’s own streaming channel. It is possible that cinema revenues would have been even higher if that were not the case.  Further, he believes that by 2022, which is just five months away now, box office numbers could return to their 2019 levels. This will put Cineworld in a good place to rebuild its financial health, which of course has been decimated during the pandemic.  #3. Cineworld shares are priced too low I do believe that it will be a while before it can go back to its pre-pandemic health, however. And there can be challenges even when it does. Cineworld shares were trending downwards even through much of 2019. This followed its expensive acquisition of Regal Cinemas in the US that increased its debt, and a weak financial update.  These can show up again. But I still like Cineworld shares because keeping even this in mind, I think the stock has fallen way too much. Even after the latest increase, the share is still trading 44% lower than its highs in March this year. At the same time, its prospects have actually improved. It is also lower than its pre-pandemic levels by 63%, which has convinced me to buy the stock. The post Cineworld shares: 3 reasons I bought them  appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Forget Cineworld’s share price rise! I’d rather buy this penny stock right now What’s going on with the Cineworld share price Is the Cineworld share price severely undervalued? Cineworld’s share price is bouncing! Is now the time to buy? The Cineworld share price is down 50%: time to buy? Manika Premsingh owns shares of Cineworld Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  25. Should I buy Cineworld shares now? (26/07/2021 - The Motley Fool UK)
    I believe Cineworld (LSE:CINE) has been one of the biggest losers on the stock market since it crashed when the pandemic began last year. After ‘freedom day’ last week, could Cineworld shares be a good option for my portfolio now? Let’s take a look. Pandemic woes Cineworld is the second-largest cinema chain in the world. It has over 9,000 screens spanning 10 countries and a workforce of over 30,000. The Covid-19 pandemic and ensuing market crash dealt Cineworld a crushing blow. Restrictions came into force affecting businesses like Cineworld in a way we haven’t seen in this lifetime and may never see again. To say performance and its share price were affected would be an understatement. Cineworld shares are currently trading for 63p per share whereas five years ago today, they were trading for 260p. That equates to a 75% drop in share price. Prior to the market crash, shares were trading for 181p per share which is a 65% drop compared to today’s price as I write. As well as Cineworld shares tumbling in value, its financials and balance sheet were badly damaged. Revenue levels between 2019 and 2020 dropped close to 80% and it had to borrow extensively to keep the lights on. When looking at companies to invest in for my portfolio, these types of things are major red flags for me. Can Cineworld shares bounce back? Despite the red flags I mentioned, I am always on the lookout for contrarian options and recovery plays. When I examine such options, I understand these will be long-term buys and I will need to remain patient. So, do Cineworld shares entice me with the long term in mind? There are a few factors that definitely do. Firstly, pent up demand will play a part. As a film lover and avid cinema-goer I had been starved of the silver screen experience and can imagine many millions of consumers feeling the same. With the film studios beginning to release blockbusters once more, and cinemas reopening, people could flock to the cinema to get their fill. Next, this demand and freedom day have improved Cineworld performance prospects massively. Since cinemas reopened in May, there has been optimism and confidence emanating from the Cineworld leadership team. Finally, I believe Cineworld shares are actually cheap just now. It is worth noting that its share price was already on a downward trajectory prior to the crash, mainly due to an expensive merger. Based on current levels, I think shares are trading for lower than their true value. I expect the Cineworld share price to increase in the coming months ahead. My verdict on Cineworld shares I am aware of the pitfalls in investing in Cineworld. Its massive debt levels concern me and make me wonder how long it will take to pay that off and return to some form of previous glory. In addition to this debt, the ongoing pandemic does unsettle me. There is still the threat of new Covid-19 variants that could enforce further restrictions and affect Cineworld in its recovery.  Overall, I will not buy Cineworld shares for my portfolio at this time. I can understand why other investors would consider it a contrarian option or recovery play, but I will avoid it for now. The post Should I buy Cineworld shares now? appeared first on The Motley Fool UK. Away from Cineworld shares, checkout this free report below with a top growth share… One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Cineworld shares: 3 reasons I bought them  Forget Cineworld’s share price rise! I’d rather buy this penny stock right now What’s going on with the Cineworld share price Is the Cineworld share price severely undervalued? Cineworld’s share price is bouncing! Is now the time to buy? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  26. Cineworld: what’s going on with this penny stock? (06/09/2021 - The Motley Fool UK)
    Cinema chain Cineworld (LSE: CINE) has seen a curious share price trend recently. Over the past year, its share price is up 13.4%. This is hardly among the biggest increases, but it is still somewhat respectable. I cannot say the same about its share price change over the past six months, however. It has fallen by a significant 41%, crashing into penny stock territory. As I write, it is trading at around 66p. What is going on here? Coronavirus haunts the Cineworld stock To sum up in two words, continued uncertainty. The FTSE 250 cinema chain has been among stocks worst hit by the pandemic. Even though it appears that the worst of Covid-19 is now behind us, there is no guarantee that clear progress will follow. The Centre for Disease Control and Prevention (CDC) predicts that in the month, coronavirus deaths in the US will rise to levels last seen in March this year, when the vaccines were still taking effect. The US is the largest market for movies, if we ignore the atypical trends for last year, so uncertainty there could be particularly damaging for cinemas. This is already becoming evident. Release dates for potential money spinners like the Tom Cruise starring Top Gun sequel and Mission Impossible 7, have been pushed to next year because of the pandemic risk.  I reckon that the relatively limited progress in handling the pandemic and its impact on movie releases is keeping investors at arm’s length from highly sensitive stocks like Cineworld. So even though much euphoria surrounded them when vaccines first came into the picture, it died down in the following few months. As a result, much of the share price progress seen during last November’s share price rally has been wiped out over the past half year.  Why I’m still optimistic Still, I think there is room for optimism here. Initial signs of a pick up in audience numbers are evident. Spending per viewer has also risen a fair bit. And there is still a spate of potential blockbusters ready for release including a James Bond, yet another Spider Man and even the fourth in the Matrix series. Based on these factors, I am optimistic about the Cineworld stock. Even if it takes a while before swinging back into profits, its revenues should start growing. This can also give it a better chance to start paying off its huge debts.  My takeaway And that in itself can be a positive for its share price. In fact, I think the chance of this happening is far higher than a big potential setback from coronavirus in the coming months. The risk exists, to be sure, but so do solutions.  I think that at its present dirt-cheap levels, Cineworld is a penny stock I shouldn’t miss. And that is why I have bought it already. The post Cineworld: what’s going on with this penny stock? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading What’s going on with the Cineworld (CINE) share price? Will September be a good month for the Cineworld share price? When will the Cineworld share price recover? Where will the Cineworld share price go in September? 3 reasons I think the Cineworld share price could rally in September Manika Premsingh owns shares of Cineworld Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  27. The Cineworld share price has risen: should I buy now? (28/07/2021 - The Motley Fool UK)
    The last week has seen a near 10% rise in the Cineworld (LSE: CINE) share price. After a poor performance in 2020, with the share price falling over 70%, the major cinema chain saw a decline in revenues after having to close many of its 767 cinemas. However, with the share price up over 7% year-to-date, could the remainder of 2021 see a bounce-back for Cineworld? Let’s take a look. Pandemic impact 2020 and the coronavirus pandemic dealt a major blow for Cineworld. The share price fell from 221p to 157p within the year. Revenues in 2020 fell 80%, with net debt rising to $8bn. Pre-tax losses sat at $3bn. These losses, incurred because of the pandemic, will have long-term impacts on Cineworld and will most certainly make a strong bounce back a more difficult challenge. Having this amount of debt is more than likely to have an enduring effect on the Cineworld share price. To add to this, Cineworld also recently announced it intends to keep social distancing in place, even after the removal of all guidelines on 19 July. While this is clearly positive in the respect it will reduce the transmission of the coronavirus; it means that customer footfall will stay below pre-pandemic levels. This will impact revenues for the foreseeable future. However, from a long-term outlook, this does not pose a major issue. Cineworld positives With all said, there are positive signs when looking at whether to buy Cineworld shares. The continuous rollout of the Covid-19 vaccination programme in its biggest markets (the UK and US) hopefully means that the likelihood of restrictions being placed on Cineworld once again in the future is lessened. The UK and US have 56% and 50% of their populations fully vaccinated, respectively. If vaccine passports are introduced, however, this could be an issue for Cineworld. To further this, Covid-19 cases are down 30% in the last seven days, and the general market outlook is somewhat up. A near-2% rise in the FTSE 100, which I recently wrote on, reflects this. Cineworld has also recently expanded, most noticeably with the acquisition of US chain Regal Cinemas for over $3bn in 2018. The debt suffered due to the acquisition may be in part a reason why the Cineworld share price was falling even before the pandemic, and therefore why shares are priced so low compared to previous times. Although this may seem like an issue, the idea of expansion – from a long-term outlook – means Cineworld at its current price could possibly provide a great opportunity. My verdict As much as I like Cineworld and think that as we slowly return to normality this will be a major boost for the firm, I think the future is too uncertain. Its acquisitions have long-term potential, but at a time when we are still dealing with a pandemic, the levels of debt it finds itself in fills me with doubt. As cheap as the Cineworld share price currently is, I wouldn’t buy the stock now. I intend to keep Cineworld on my watchlist for the rest of 2021 and make a definitive decision then. The post The Cineworld share price has risen: should I buy now? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Does the Cineworld share price risk/reward stack up at 67p? Will the Cineworld share price return to 100p? Should I buy Cineworld shares now? Cineworld shares: 3 reasons I bought them  Forget Cineworld’s share price rise! I’d rather buy this penny stock right now Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  28. Cineworld and easyJet shares: should I buy the reopening trade? (23/02/2021 - The Motley Fool UK)
    Prime Minister Boris Johnson has promised us an “incomparably better” summer than 2020. Even nightclubs might be able to reopen by July. So, I’m not surprised to see the Cineworld (LSE: CINE) and easyJet (LSE: EZJ) share prices up by as much as 10% this morning. Airlines and cinemas are among those that have been hardest hit by coronavirus. I’ve been wondering whether it’s the right time to buy into these stocks, as a trade on reopening the economy. easyJet shares: well supported During the final three months of 2020, easyJet flew 23,428 flights, compared to around 130,000 during the same period in 2019. I suspect traffic has fallen since December, although the airline hasn’t yet provided any update on this. However, easyJet’s financial position actually looks fairly safe to me. The airline has raised £4.5bn since the start of the pandemic, through a mix of loans, aircraft sales and by selling new shares. As of 25 January, the company still had access to £2.5bn of unused funding. Management says that cash costs have been reduced to £40m per week with all aircraft grounded. That suggests the airline could stay afloat for at least a year without needing to raise additional funds. Fortunately, I don’t think that’ll be necessary. Assuming a gradual return to normal flying this summer, I don’t expect easyJet to need any further funding. What would I pay? easyJet’s share price has been fairly volatile over the last year. The stock’s 52-week low of 410p is 70% below its 52-week high of 1,377p. The price, as I write, is 937p — roughly in the middle of this range. However, easyJet issued new shares in June, increasing its share count by 15%. That means a share price of 940p today is equivalent to around 1,100p before the fundraising. In addition to this, easyJet has more debt than it did a year ago — debt that will need servicing or repaying at some point. Consensus forecasts suggest the stock is trading on around 15 times 2022 earnings and about nine times 2023 earnings. For me, that’s high enough for an airline stock at this time. I don’t think easyJet shares look especially cheap and won’t be buying at current levels. What about Cineworld shares? I’ve written about Cineworld (LSE: CINE) in these pages a few times before. The founding Greidinger brothers have built the world’s second-largest cinema chain, with 787 cinemas and 9,500 screens. I admire Cineworld’s scale and success. But I think that the group’s $8bn net debt is probably unsustainable. I expect the company will need an equity refinancing at some point, which could cause heavy dilution for existing shareholders. The Greidingers control around 20% of Cineworld’s stock, so they have an interest in refinancing the business without wiping out shareholders. My guess is they plan to delay a full refinancing until cinemas are open again. This would probably justify a higher share price, reducing any dilution. Cineworld shares currently trade on around 10 times 2022 forecast earnings. That’s a lower multiple than for easyJet shares, but I think the situation is quite different. Whereas easyJet’s borrowings look manageable to me, I think Cineworld’s debt looks problematic. For that reason, I’ve ruled out Cineworld as a potential buy. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I’d ignore the Cineworld share price and buy this US stock for my ISA instead Should I buy airline stocks today? Here’s my view on the struggling sector Why I’d ignore the Cineworld share price rally and buy these UK shares for my ISA Why I’d avoid the Cineworld share price and buy this leisure stock instead Rolls-Royce and Cineworld: are these UK shares too risky to buy now? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld and easyJet shares: should I buy the reopening trade? appeared first on The Motley Fool UK.
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  29. Is Cineworld’s share price too cheap to miss? (07/08/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price has roared back since striking record lows around 15p last October. Though fears of its ability to continue as a going concern remained, news of a breakthrough on the Covid-19 vaccine front in late autumn has helped the UK leisure chain rocket from those troughs. Cineworld’s share price is 86% more expensive than it was a year ago at 65p thanks to successful UK and US vaccination drives. However, the penny stock has recently retraced sharply due to fresh waves of Covid-19 infections. At 62.6p per share Cineworld’s now worth half of March’s post-2020 stock market crash highs. Superheroes to the rescue! Is the market over-reacting here? After all, predictions of a catastrophic worsening in the fight against Covid-19 have proved wide of the mark. Daily infections in the UK peaked at around 50,000 during the current wave in mid-July before sharply falling again. This is some way off many scientists’s estimates and way off the 80,000-odd new cases reported in December’s peak. What’s more, predictions that ticket sales could be weak as Covid-19 restrictions were eased have also been disproved. The possibility that streaming giants like Netflix would keep movie goers glued to their sofas was particularly concerning for Cineworld investors. But blockbuster results from the likes of Odeon show that peoples’s love of the big screen remains undimmed. A strong slate of movie releases like A Quiet Place II, Fast & Furious 9, and Black Widow have encouraged people back into movie theatres in huge numbers. And the conveyor belt of crowd pullers being released looks set to click through the gears. Comic book favourites like Spider-Man: No Way Home, Venom 2, and Eternals are all scheduled for release later this year. New movies from established franchises like Ghostbusters, The Matrix and James Bond are also coming down the pipe for 2021. Cineworld’s share price: not cheap enough for me However, will the revival in the cinema industry be too late to save Cineworld? Research firm Omdia has forecast that the UK box office won’t reach 2019’s levels of £1.3bn until 2023. This is a massive concern given the huge amount of debt sitting on Cineworld’s books. There’s also the question over the long-term impact that the streamers will have on cinema operators’ profits. Okay, box office numbers have been exceptional since coronavirus restrictions were eased. But does the high level of ticket sales reflect the one-off boost of people being desperate to get out and about again? Will audience numbers at Cineworld be as high as in pre-coronavirus times as the likes of Netflix invest heavily in content and technology? Finally, it’s worth remembering that whilE recent Covid-19 cases haven’t been as bad as feared, they could well soar again. The fight against the pandemic is ongoing and new variants could emerge that might force Cineworld and its peers to close their doors again. And in the case of this particular UK share I fear the implications of this could prove fatal. The post Is Cineworld’s share price too cheap to miss? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Are Cineworld shares a bargain? Meme stock investing: 2 top shares to buy right now The Cineworld share price is falling! Is now the time to buy? Is the tumbling Cineworld share price a buying opportunity? How the Cineworld share price compares to Netflix Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  30. Cineworld’s share price is still rising! Here’s what I’m doing now (26/05/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price has recovered strongly after hitting multi-month lows in early May. The UK leisure chain moved closer to the £1 per share market following an excited reaction to latest financials earlier this week. The current market buzz means that Cineworld could be propelled above penny stock status in the very near future. Cineworld’s share price is soaring on news that moviegoers are flocking back to its theatres as coronavirus lockdowns are eased. It goes some way to assuage fears that ticket sales would struggle as the pandemic rolls on and people stay glued to streaming services like Amazon Prime and Netflix instead. But is now the time to buy in? Cineworld’s share price rises again! In case you missed it, Cineworld said earlier this week that it had enjoyed “a strong opening weekend in the UK” as it reopened its theatres in line with government guidance. In fact it said that its weekend performance “went beyond our expectations as customers were eager to return to the movies and enjoy the full movie experience”. Indeed, Cineworld said that it experienced strong concession sales too. The roaring success of Peter Rabbit 2: The Runaway helped to drive strong takings last weekend. And chief executive Mooky Greidinger commented that “with the releases next week of Cruella, and A Quiet Place 2, we expect next weekend’s results to be strong”. Greidinger added that “when combined with improving consumer confidence and the success of the vaccination rollout, we expect a good recovery in attendance over the coming months”. Outside of the UK, Cineworld said that 97% of the 500-plus cinemas in its core US territory were now open. It added that most of its cinemas in Poland and Israel should be re-opened by the month’s end. Is now the time to buy? The Cineworld share price may be on the march again. But I’m afraid I’m still not tempted to buy back into this FTSE 250 share. I sold my holdings in the UK leisure share late last year on fears over its huge debt pile. My concerns surrounding this issue haven’t abated, either. At the same time, the long-term threat posed by streaming companies has increased as studios have changed their movie release models to cater more effectively to audiences at home. Going to the cinema has long been one of the most popular leisure activities for around a century. And it’s possible that Cineworld might enjoy a strong and sustained recovery following Covid-19 lockdowns, and deliver terrific shareholder returns in the process. Let’s not forget that the global box office sat at fresh all-time highs before the public health emergency, in 2019. That said, I still think the Cineworld share price carries too much risk right now. Any fresh surge in Covid-19 cases could cause its cinemas to shut en masse once more. It already faces a long road ahead to get its debt mountain off the books. Fresh lockdowns could prove fatal. I’d much rather buy other UK shares for the moment. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Cineworld shares: why I won’t be investing The Cineworld share price is rising again. Should I buy now? Is the Cineworld share price a reopening opportunity? Will the Cineworld (CINE) share price rise with soaring seat sales? Short sellers are pushing the Cineworld share price down! John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Netflix and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld’s share price is still rising! Here’s what I’m doing now appeared first on The Motley Fool UK.
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  31. Forget the Cineworld share price! I’d rather buy other UK shares in July (30/06/2021 - The Motley Fool UK)
    It’s no surprise to see the Cineworld Group (LSE: CINE) share price slipping lower again. Since closing at 122p per share in March — its most expensive level since the stock market crash of early 2020 — the UK leisure chain has dropped 33% to current levels around 81p. More recently, the escalating Delta variant (and what this means for Covid-19 lockdowns) has hit Cineworld’s share price. It has fed fears over the cinema operator’s ability to fill its UK theatres any time soon. Could the market be overreacting here? After all, Cineworld sources the lion’s share of its profits from the US. And Covid-19 infection rates remain stable in this core market. Consumers could be ready to get back to regular cinema trips too, so the future may be bright for Cineworld. Is now the time to go dip-buying this share? Why I turned my back on Cineworld I used to own shares in Cineworld. I bought the UK leisure share back in 2018 as I thought profits could boom following its entry into the gigantic US marketplace. What’s more, the steady stream of crowd-pulling movies from the likes of Marvel, DC and Disney was on course to step up a gear or two in the early 2020s. This meant the business could expect lovers of action, fantasy and family films to keep its cinemas filled. The Covid-19 crisis changed my view of the business, however, and I sold my Cineworld shares last autumn. The penny stock could still have a bright future as the slate of blockbusters from Hollywood studios remains strong. And don’t forget that the global box office achieved all-time highs just before the public health emergency. But I remain extremely worried by the colossal amount of debt Cineworld carries on its balance sheet. Let’s not forget that the company was warning over its ability to continue as a going concern as recently as September. The Covid-19 crisis is far from over and further rounds of lifesaving fundraising like in late 2020 and early 2021 could be in order if its doors are forced to close again. Debt dilemma The huge cost of servicing its debt is also something that UK share investors like me need to consider. As is Cineworld’s ability to pay this down in a post-coronavirus environment. There remains huge uncertainty over whether moviegoers will return to cinemas en masse. Infection fears following the Covid crisis are tipped by many to linger for years to come. What’s more, the soaring popularity of streaming services from Netflix, Disney and Amazon looks set to exacerbate the stay-at-home culture. As analysts at Hargreaves Lansdown recently commented: “there are fears some people may have got a little too comfortable watching releases from their sofas.” In the future people may not need to go out anymore to catch new releases following recent changes to the studio model that gives streamers a big boost versus the cinema operators. It all means I don’t regret my decision to sell Cineworld shares and I’ll be looking elsewhere to top up my ISA in July. The post Forget the Cineworld share price! I’d rather buy other UK shares in July appeared first on The Motley Fool UK. For these reasons I won’t be buying Cineworld shares following the recent price dip. I think these top UK growth shares could prove better buys. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Cineworld shares at 82p? 2 penny stocks to buy in July Is the Cineworld share price about to make a comeback? Cineworld shares are up 273% in 8 months. Am I too late to buy? Is this UK penny stock worth buying? John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Netflix, and Walt Disney. The Motley Fool UK has recommended Hargreaves Lansdown and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  32. COULD NETFLIX REALLY BE LOOKING TO BUY CINEWORLD? (20/08/2021 - Reddit Stock Market)
    Is it worth getting Cineworld Group shares? The price is currently low & has been falling since March 2021. It has been half the current market price going back to March 2020 due to the 1st Covid lockdown in the UK. There are rumours of interests from one of the streaming giants after the announcement of a 40% hike in ticket prices recently in the UK. I'm no Gordan Gekko but I am tempted to buy around 100 shares. I'd appreciate any advice before doing so as I only began purchasing shares last year & done very well but put it more down to luck than judgement as I'm still a newbie at all this. Online Findings - DANIEL PETER on 28th June 2021 small-screen.co.uk Last year rumours were rife amongst an ever-growing debt pile that Cineworld (CINE) may be taken over with Amazon being a prime contender looking to pick up a cinema chain, but it’s now sounding like Netflix might be the ones to step in. With both AMC (owner of Odeon in the UK) and Cineworld being the potential options. So, who else? Enter Netflix. Back in 2018 when Cineworld picked up Regal Cinemas for an estimated $3.3 billion another rival entered the race. Netflix. The streaming giant was looking into acquiring a cinema chain, and after Cineworldtook over Regal, they moved forwards in acquiring The Paris Theatre in New York City. Rumours persisted that they were also looking at the infamous Grauman’s Egyptian Theatre on Hollywood Boulevard which they picked up in May 2020. But since then, silence, as the COVID-19 pandemic took hold. COULD NETFLIX REALLY BE LOOKING TO BUY CINEWORLD? However, with the rise of Disney Plus, Amazon taking over MGM, Netflix runs the risk of falling behind its competitors who have the financial clout to make large acquisitions of historic studios and back catalogues. Yet a bid for Cineworld could revitalize not only the cinema chain itself but open a new door of revenue for the streaming giant and help it compete against its rivals on a grand scale. The share price hit an all-time low of 28p last November and currently sits at 84p, a far cry from £3 a share in 2017, and it could be the right time to make a purchase. AMC is no longer a viable takeover target with the volatile share price rocketing to heights of $70-$50 this month alone leaving Cineworld prime for potential suitors. The chain has a great setup in terms of screens and reaches across the globe and a takeover would surely be welcome as it battles debts in the billions. Shareholders may welcome the removal of the Greidinger family who has continued to clash with shareholders of bonus plans despite the pandemic. With the ever-rising changes in box office dominance as China begins to threaten the Hollywood status quo, a new player entering the mix could be just what it needs, and the box office gross would be a welcome advantage for Netflix. An avenue to release exclusive Netflix content to almost 10,000 screens could be a powerful draw for audiences and the marketing data Netflix already has could mean they could target millions of customers directly. Could you see Netflix taking over a cinema chain?   submitted by   /u/GlorifiedJester [link]   [comments]
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  33. The Cineworld share price is rising: could there be further to go? (20/03/2021 - The Motley Fool UK)
    So far just a few months into 2021, the Cineworld (LSE: CINE) share price is up by around 75%. Shares in the cinema group have benefited from being supremely cheap and being a potential beneficiary of the easing of lockdown restrictions, particularly in the UK. To me though, Cineworld still seems like a company with a bleak future. That’s why I think the share price rise is overdone.  Challenges for the Cineworld share price The big challenge is a structural one. As streaming rises in popularity and cinemas possibly get worse deals with film studios, it becomes harder and harder to make the business model work. The future of film lies with Netflix and its competitors, not with Cineworld, in my view. Therefore, there’s only so much investors can possibly be willing to pay to buy in to a company that’s in long-term decline. When I add on top of that Cineworld’s huge debt, it’s clear the group has a major problem. The debt is around $5bn. That’s far larger than the market cap of the company, even after the recent share price revival. Institutional investors recognise this, which is why even in the era of Reddit investors and short squeezing, they are confident enough to short the stock. In other words, there are hedge funds betting the shares will fall in value. Possible reasons to buy Cineworld shares Probably the only reason to buy shares in Cineworld is as a play on a consumer spending-led recovery from the pandemic. A recovery when it comes would very likely include significant leisure and entertainment spending. So, could the share price rise be sustained? Possibly. It’s clear if the roadmap out of lockdown progresses as planned then value shares like Cineworld could do well. Longer term though, I don’t see it as a good investment for the reasons outlined above. For me, the cons far outweigh the pros when it comes to the Cineworld share price. A better alternative When looking for a share that can better bounce back from being hit hard by Covid, I’d look instead at shares in Informa (LSE: INF). The group is well known for its conferences, which have obviously been dented by the pandemic. However, the subscriptions part of the business (which includes research journals and data services) should continue to grow. That part of the business can grow regardless of the pandemic, so is more resilient and diversifies Informa’s earnings. Subscriptions created £300m of adjusted operating profit for the group in 2020. Conferences should bounce back post-pandemic too. But there’s a big risk for the company in this area. Businesses now are used to not having to attend expensive conferences. It’s possible they may well have re-allocated budget to other activity. They’ve also very likely found digital solutions for networking, sales, marketing and other business development, which may have worked for them and been cost-effective. It doesn’t mean they won’t attend future events, but such events may be less lucrative. Whether that’s the case is one of the post-crisis unknowns at present. Despite those challenges, I’d be more confident adding Informa to my portfolio than I would Cineworld. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy AMC stock or Cineworld shares? Cineworld shares are soaring in 2021. Should I buy? Premier Oil and Cineworld: why I’m not buying these shares Forget the Cineworld share price: I’d buy this cheap FTSE 100 stock This is what I’d do right now about the Cineworld share price Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld share price is rising: could there be further to go? appeared first on The Motley Fool UK.
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  34. The Cineworld share price is falling! Is now the time to buy? (04/08/2021 - The Motley Fool UK)
    The Cineworld (LSE: CINE) share price has fluctuated significantly during 2021. The success of the vaccine program in the UK at the start of the year pushed the price in a positive direction. It even reached a high of 122p on 19 March, but now it has dropped to less than half of that price at 64p.  So what has changed? Despite restrictions being lifted, movie goers are still anxious about sitting in one big room together. The new delta variant has been an additional twist in the story and has stunted Cineworld’s initial plans for recovery.  Despite this, I think Cineworld at 64p is undervalued. There could still well be a renaissance in the return to the movies if infection rates drop and the vaccines keep rolling out. Here’s why I’m thinking it might be an opportune time to buy Cineworld shares for my portfolio. May the Pfizer be with you From January 2021 to March, the Cineworld share price jumped up by more than 163%. Evidently there was a lot of expectation that Cineworld could recover from the pandemic, by investors and me included. Unfortunately, due to the emergence of the delta variant, those early predictions turned sour quite fast. It became apparent to me that the overall recovery might be a lot slower than first imagined.  But while the share price continues to fall, so too do the number of Covid-19 cases. This is why I believe it could be an opportune time for me to buy shares in Cineworld.  I also believe that many cinema goers are itching to get back to the big screen. Personally, I used to love going to the cinema and would go at least once a week. I think this demand is just bubbling at the surface for the moment and hopefully there will be further data showing a continuation in the decline of cases. The pandemic awakens  While I am hopeful that the Cineworld share price will bounce back in 2021, I am not ignorant of the devastation that shook the cinema industry because of Covid-19.  Five years ago the share price was trading at 260p, whereas it is now at 64p, which is a 75% drop in price. If you take a look at Cineworld’s financials and balance sheet, they are also far from encouraging. Revenue dropped by almost 80% between 2019 and 2020. Further, average annual cinema-spending per head population in the UK dropped from £18.72 in 2019 to just £4.37 in 2020.  Needless to say, the recovery for the cinema industry will prove to be a mountain to climb.  A new hope for the Cineworld share price However, I believe, eventually, there will be a return to the cinemas and the recent statistics show that a future evening in front of the big screen might not be that far away.  With the Cineworld share price being in my opinion seriously undervalued at 64p, I think this could be a very intriguing stock to keep an eye on and so I am very tempted to add Cineworld to my portfolio.  The post The Cineworld share price is falling! Is now the time to buy? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the tumbling Cineworld share price a buying opportunity? How the Cineworld share price compares to Netflix The Cineworld share price could fall further and here’s why Cineworld’s share price: why I would, and wouldn’t, buy this UK share today The Cineworld share price has risen: should I buy now? John Town has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  35. Should I add Cineworld shares to my portfolio today? (13/09/2021 - The Motley Fool UK)
    Since peaking in mid-March at 122p, Cineworld (LSE: CINE) shares have lost 50% of their value. It was expected that the Cineworld share price would boom as lockdowns eased, however, this doesn’t seem to have been been the case. There are a few reasons why this dip could be a good buying opportunity for my portfolio, but there are still long-term risks ahead of the UK multiplex cinema chain. Pandemic problems Cineworld shares were hammered by the pandemic. With multiple UK lockdowns, the cinema industry ground to a halt. The 2021 half-year results highlight the continued strain on the firm. Revenue came in at just $293m with a loss before tax of $659m. In addition to this, monthly cash burn was around $45m. Net debt also increased by $81m, reaching $4.6bn. Another problem the pandemic brought to the fore is the dominance of streaming services such as Netflix and Amazon Prime. As my fellow Fool Gemma Blackwell pointed out, film viewing is now twice as likely on one of these platforms as it is in a traditional cinema. Moving forward, Cineworld will need to find ways to overcome this competition if it wants to stay afloat in the market. Cineworld shares: bull case That being said, there are a number of reasons I think Cineworld shares could rise in the shorter term. As we continue to move out of the pandemic, it’s likely that customer demand will pick up again. In fact, Cineworld has already reported attendance figures reaching 50% of pre-pandemic levels. I expect this demand to continue picking up throughout the remainder of 2021. Another factor driving demand is the line-up of new releases Cineworld has coming up. This is due to a Covid-related backlog of new films from franchises such as The Matrix and James Bond. With many of these films being released exclusively to Cineworld, this sets it aside from online streaming services. The firm has also been able to effectively rebuild its balance sheet having secured an additional $213m in liquidity. This liquidity will be issued in addition to over $800m secured during the pandemic. While this increases long-term liabilities, it allows the firm to more quickly recover from the virus’s impacts. I expect this to help Cineworld shares in the short term. The verdict Cineworld has a long way to go before I would consider adding its shares to my portfolio. The excessive financial strain on the firm won’t be permanently lifted by a temporary increase in demand. In addition to this, I don’t think Cineworld will be able to compete with online giants Netflix and Amazon much longer. Although liquidity help is good in the short term, it only places more strain on Cineworld in the long run.  The post Should I add Cineworld shares to my portfolio today? appeared first on The Motley Fool UK. One Killer Stock For The Cybersecurity Surge Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028 — more than double what it is today! And with that kind of growth, this North American company stands to be the biggest winner. Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it… We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify. Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time… More reading Will a US listing help the Cineworld share price? Cineworld shares are down 7% this week. Should I buy the dip? Is the Cineworld share price too cheap to miss? The next post-pandemic revival? Why I’d take a punt on Cineworld shares Cineworld: what’s going on with this penny stock? Dylan Hood has no position in any of the shares mentioned in this article. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Netflix. The Motley Fool UK has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  36. Should I buy AMC stock or Cineworld shares? (20/03/2021 - The Motley Fool UK)
    As a way to invest in the economic reopening over the next few months, AMC (NYSE: AMC) stock and Cineworld (LSE: CINE) shares are two good options. Both of these companies have been hurt badly by the pandemic. As such, they appear to have more to gain from the re-opening than many other businesses.  However, I think one of these companies could be a much better buy than the other.  AMC stock outlook  Cineworld and AMC are two of the largest cinema operators in the world. Unfortunately, their size has not helped them in the pandemic. Both companies closed virtually all of their cinemas last year as they couldn’t make the numbers work with limited audiences, delayed film releases, and social distancing. With losses growing, both companies were also forced to ask creditors for more breathing space and to raise money from investors.  But now, there’s light appearing at the end of the tunnel. Last week, AMC announced that 98% of its US locations would be open for business on 19 March. By the 26, 99% of all of its sites will have reopened.  This is a positive step forward for the group. However, the company is unlikely to see revenues rebound to 2019 levels anytime soon. It has warned that social distancing and automatic seat blocking and state and local regulations for seating capacity will weigh heavily on its potential to generate revenues in the near term.  Cineworld shares: underpressure As the company reopens, AMCs future is looking up. The same cannot be said for Cineworld. The business has not issued a press release telling investors when it will open its UK and US theatres. In theory, the corporation can open theatres here in the UK by the middle of May. However, management may decide to wait until social distancing restrictions are lifted. The company closed many of its locations last year before the lockdown as it could not make any money with restrictions in place.  The risks both of these companies face are clear. If customers don’t return in significant numbers, their balance sheets will remain under pressure, and it may take years for them to return to health.  On the other hand, if customers return quickly to open locations, Cineworld shares and AMC stock could recover significantly. We should have the answer to this relatively quickly. Customer numbers at AMC’s open locations will give us some guide as to Cineworld’s potential, although that does not necessarily mean the same trend will happen across the pond.  The debt factor  Debt is another factor. AMC has net debts of $5.5bn, compared to its market capitalisation of $7bn. Cineworld’s obligations sit at $8.2bn compared to a market value of $2.4bn.  In my opinion, these figures make it clear which company I should back. Cineworld has far too much debt, and with that being the case, I would buy AMC stock for my portfolio.  Cineworld shares might look cheap compared to the company’s trading history, but there’s no guarantee it will ever be able to return to its former glory.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Cineworld shares are soaring in 2021. Should I buy? Premier Oil and Cineworld: why I’m not buying these shares Forget the Cineworld share price: I’d buy this cheap FTSE 100 stock This is what I’d do right now about the Cineworld share price Cineworld share price zooms past 100p! Would I buy it now? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy AMC stock or Cineworld shares? appeared first on The Motley Fool UK.
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  37. What’s happening to the Cineworld share price? (30/05/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price is down by 25% from its March highs, but this recovery play is still up by more than 200% from last year’s lows. With most of the company’s UK and US cinemas now open, I reckon it could be a good time to take a fresh look at this business. If Cineworld shares look cheap based on how I think the company should trade, then I might consider buying. Party like it’s 2019? Cinemas have had it tough over the last year. They’ve been closed, while the popularity of streaming services has boomed. More films are being released on demand, and more big-name actors are working directly for streaming platforms. Personally, I think people will go back to the movies. I’m basing my analysis on the view that cinemas will (mostly) get back to normal. As Cineworld is the world’s second-largest cinema chain, I think this company should keep hold of its big share of the market. To keep things simple today, I’m going to assume that Cineworld’s profits will return to 2019 levels over the next two years. Cineworld share price: cheap as chips? Cineworld generated a pre-tax profit of $212m in 2019. That translated into earnings per share of $0.13. At today’s exchange rate, that’s equivalent to 9.3p per share. As I write, Cineworld’s share price sits at 91p, so the shares are valued at just under 10 times 2019 earnings. That seems reasonable to me. However, the latest broker forecasts I’ve seen suggest that Cineworld’s earnings won’t get back to 2019 levels until 2023. It’s too soon to say, but personally I think the recovery could be quicker than this. Going to the cinema is an affordable treat that gets us out of the house. If people feel safe, I think they’ll want to go.  What could go wrong? Cineworld’s share price is still down by 50% from its pre-pandemic levels. Unfortunately, while the stock has been falling, debt levels have been rising. The group’s net debt has risen by $1.2bn to $8.3bn since the start of 2019. As an equity investor, I can’t ignore this. These extra borrowings mean that future interest costs and repayments are likely to be higher than in the past, leaving less spare cash for shareholders. A second headache is that the company needs to fund a $255m legal payout to shareholders of Regal Cinemas, which Cineworld acquired in 2018. This payout could cancel out the benefit of the $203m US tax refund the Cineworld received recently. Cineworld shares: the big picture I think that Cineworld’s business will recover. I’m starting to think that the company may also avoid having to raise funds by issuing new shares, something I previously expected. However, the cinema industry was already struggling with slowing growth before the pandemic. Cineworld’s revenue fell by 6.2% in 2019. I don’t expect this business to deliver the kind of market-beating growth it did in past years. Indeed, it’s possible that I’m wrong and that the cinema market has changed forever. In that scenario, Cineworld could struggle to return to historic levels of profitability.  Overall, I think Cineworld shares are already fairly priced for a return to normal trading. I don’t see too much upside from the current share price, but I can see plenty of risks. I won’t be buying. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Cineworld share price is flagging. I think this reopening stock is a better buy Cineworld’s share price is still rising! Here’s what I’m doing now Cineworld shares: why I won’t be investing The Cineworld share price is rising again. Should I buy now? Is the Cineworld share price a reopening opportunity? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What’s happening to the Cineworld share price? appeared first on The Motley Fool UK.
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  38. Will Cineworld shares ever be worth buying? (19/05/2021 - The Motley Fool UK)
    Taking a quick look at Cineworld’s (LSE: CINE) share price lately, things aren’t looking good. Long before the Covid-19 pandemic, this British cinema leader was in decline. As of 19 May, it is trading at around 85p, down almost 15% from 98p a month ago. However, in the past 12 months, the Cineworld stock price has risen 50% from 57p. I’m always looking for cheap shares that can diversify my portfolio. Is Cineworld actually on the rise as Britain reopens, or is it too risky for my portfolio? A quick glance at Cineworld’s financial situation Let’s be honest, the cinema industry did not need Covid-19 to put it in a bad position. The sector was already in decline, and the pandemic simply worsened a bad situation. This was reflected in Cineworld’s poor 2020 performance.  Last year, revenue plunged 80.6% to £852m from £4.3bn in 2019, while losses mounted to a whopping £2.2bn. To keep itself from going completely under, some £810m of new debt was raised. More debt has since been raised, bringing its total to around £6bn. Cineworld’s share price potential It’s tough to talk about potential when I see a debt pile that big. The one saving grace that Cineworld has right now is that its UK branches reopened today, 19 May. Having already reopened many of its locations in the US last month, this ‘homecoming’ could go a long way towards recovery.  Following the success of films such as Godzilla vs Kong in the US, similar expectations have been placed in the UK. Investors will be hoping that pent-up demand for moviegoing after more than a year in lockdown will see plenty of bums on seats.  It is also my belief that Cineworld could enjoy a Darwinian post-pandemic survival. While many cinema chains will not survive this pandemic, Cineworld could mop up the market share left behind by these closures.  My concerns about Cineworld’s share price There are already rumours circulating of the increased severity of the Indian Covid variant. We have already seen in cities such as Glasgow that Cineworld has been prevented from reopening over fears of rising cases. This situation could swiftly escalate, causing more cinemas to close once again. And even with a reopening, success wouldn’t be guaranteed. Before its March 2020 drop (when it sat at 182p), Cineworld’s share price was already 44% off its 2017 all-time highs of 325p. Streaming has been disrupting the cinema industry for years.  Even returning to profitability may not be enough for Cineworld to pay off its debt faster than interest accrues at such enormous amounts.  So, should I invest in Cineworld? There is a reason that Cineworld is such a heavily shorted stock — so few investors believe it can stage a comeback. I don’t hold out much hope for the cinema industry as a whole, or Cineworld. With such massive debt as well as the looming threat of more lockdowns, it’s a no from me. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading As the UK reopens, is the Cineworld share price a bargain? Why I’m buying this absurdly cheap FTSE 250 stock this month The Cineworld share price is below 100p. Is now a buying opportunity? I’d ignore heavily-shorted Cineworld’s share price and buy these penny stocks instead Short sellers love Cineworld stock! Will it ever be a lucrative investment? Jamie Adams has no position in Cineworld Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will Cineworld shares ever be worth buying? appeared first on The Motley Fool UK.
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  39. The Cineworld share price is flagging. I think this reopening stock is a better buy (26/05/2021 - The Motley Fool UK)
    The Cineworld (LSE: CINE) share price rallied strongly between October 2020 and March this year. If I’d had the guts to invest (kudos to those who did), I’d have been sitting on a gain of around 400%. That’s an incredible return over such a short period of time. Since March however, this momentum has reversed. What’s going on? Why is the Cineworld share price falling? One potential explanation for the decline might be a simple bout of profit-taking. Having done so well over recent months, it’s only natural some traders will want to sell up and move on. Whether this decision is the right one is debatable. On Monday, the FTSE 250 firm revealed it had seen a “strong opening weekend” and that it expected audience numbers to continue rising in the months ahead. With delayed blockbusters such as Top Gun: Maverick, No Time to Die and Black Widow finally due for release, it’s possible that recent weakness in the Cineworld share price will prove temporary. That said, I’m still wary. The arrival of warmer weather in the UK risks spoiling the party. On top of this, investors can’t overlook the astonishing amount of debt still weighing on the balance sheet. There are also developments within the film industry that need to be considered. The chance of movies being made available to stream at the same time they’re released in cinemas could be another headwind for Cineworld, especially once all the additional costs of making at trip are factored in.    Taking the above into account, it’s perhaps to be expected the company remains a favourite with short-sellers (those betting that a particular share price will fall). As I type, Cineworld is the second most hated stock on the market. The only stock attracting more short-sellers, according to shorttracker.co.uk, is supermarket giant Sainsbury. Are there safer ‘reopening’ opportunities in the market? I think so. A better opportunity? Today’s update from low-cost gym provider The Gym Group (LSE: GYM) has been warmly received by the market. It’s not hard to see why.  With all of the company’s 187 sites now open, trading has “outperformed” management’s own expectations. Total memberships climbed from 547,000 at the end of February to 729,000 by 24 May. This brings the company close to the 794,000 memberships seen in December 2019. Fitness fans are also visiting sites at record levels (an average of 1.5 times per week).  Although trading may slow during the summer, GYM is in no mood to rest. Having opened four new gyms since 12 April, the firm looks set to take advantage of (newly) vacated sites and continue growing its estate. With net debt of “only” £63m at the end of April, GYM is clearly in better financial health to achieve its goals than Cineworld. Of course, any investment involves risk and GYM’s no exception. In my view, there’s a distinct lack of economic moat here. As a result, the company will likely always face fierce competition for members. There’s also no guarantee the popularity of working out from home, from both a convenience and cost perspective, won’t continue rising. And, as much as I hate to say it, there’s also a chance that coronavirus infection rates could spike again.  Despite these potential drawbacks, I suspect I’d feel far more comfortable buying GYM over CINE right now.  One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Cineworld’s share price is still rising! Here’s what I’m doing now Cineworld shares: why I won’t be investing The Cineworld share price is rising again. Should I buy now? Is the Cineworld share price a reopening opportunity? Will the Cineworld (CINE) share price rise with soaring seat sales? Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended The Gym Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld share price is flagging. I think this reopening stock is a better buy appeared first on The Motley Fool UK.
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  40. The Cineworld share price could fall further and here’s why (30/07/2021 - The Motley Fool UK)
    This is just my opinion: but I strongly suspect the Cineworld (LSE: CINE) share price will fall further. I have no idea what it’ll do over the next few days, weeks, or months, because over that short time frame any stock can go up or down regardless of the underlying value of the business. Just ask previous investors in failed outsourcer Carillion, to take one example. Or even Wirecard investors, to name another. I’m far more confident to say that in two to three years, Cineworld’s shares will be worth even less than they are now. The main reason why the share could fall further My biggest concern with this share is its debt. Net debt is over £8bn. Over-indebtedness like this imposes an ever-tightening stranglehold on a business. Sometimes it can take a while for the effects to become obvious.  What’s clear to me though is that any business that fails will wipe out shareholders, as other creditors are always further up the list to get money out of the business. It also means, before that stage, that the business has to spend money on paying its debts rather than on growth initiatives. That’s not a great use of money. Other potential pitfalls for the Cineworld share price The whole industry is under siege from streaming. This onslaught is unlikely to abate any time soon, in my view, despite the recent hiccup in Netflix’s subscriber numbers. In the last six years, the number of shares has more than doubled. Cineworld has had to ask shareholders for money to get through the pandemic. What that means is it will be hard to get to the same level of earnings per share as pre-pandemic without tremendous growth.  The vaccination rate may be very good in the UK, which should help leisure reopen – pingdemic aside. However, a quick reopening is far less assured than it was a few months ago. Any further closure of cinemas could have a catastrophic impact on the Cineworld share price. Finally, a legal spat with Cineplex over an abandoned acquisition, could add further costs and distract management at a crucial time for the business. The reasons it could do the opposite of what I predict I can’t guarantee what will happen in the future – no one can. The Cineworld share price could rise. It may effectively get debt under control or rationalise the business, or sell off some bits. This would be the main way I see the share price recovering in a way that is sustainable. If the leisure industry, consumer spending, and the economy all bounce back very strongly, Cineworld might get a boost as a so-called recovery stock. That’s short term though. With Cineworld still worth around £900m, there is still a long way for it to fall, and I’ll be avoiding the shares. The post The Cineworld share price could fall further and here’s why appeared first on The Motley Fool UK. While I think Cineworld shares are likely to flop, this exciting company below, set to benefit from the space age, has much more exciting prospects. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading Cineworld’s share price: why I would, and wouldn’t, buy this UK share today The Cineworld share price has risen: should I buy now? Does the Cineworld share price risk/reward stack up at 67p? Will the Cineworld share price return to 100p? Should I buy Cineworld shares now? Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  41. Cineworld shares are soaring in 2021. Should I buy? (17/03/2021 - The Motley Fool UK)
    Cineworld (LSE: CINE) shares are having a good run. Since the beginning of the year, the stock has increased over 85% and are up 435% during the past 12 months. But past performance is not an indication of future results. There are a few reasons why I think Cineworld shares have recently rallied. I’ll cover them shortly. I’ve been tempted to dip my toe in but I’m not convinced by the investment case. For now, I’ll continue to monitor the share price as I reckon there are other better growth opportunities. What’s behind the rise? Cineworld’s business was impacted by the pandemic and as a consequence the shares became very cheap. I’m not surprised, especially when most of the company’s cinemas are temporarily shut down and revenue has dried up. Even now, Cineworld shares are a bargain with a price-to-earnings ratio of 8 times. But the fact that there are several vaccines available has improved sentiment towards the stock. The vaccine rollout is going well, which has provided Cineworld shares with some momentum. The stock has been soaring on the back of a Covid-19 recovery and there are hopes that Cineworld will be able to open its venues again. Over 70% of the FTSE 250 company’s revenue is derived from the US. So I reckon it also helps the share price when the US has announced a stellar stimulus package. This means that consumers will have more spending power. Hence it’s likely more Americans will go out and watch a movie, thereby boosting Cineworld’s revenue. Turning bullish According to shorttracker.co.uk, Cineworld shares have a short interest of 5.6%. This give me an indication of how negative investors are on the company. They are ‘shorting’ the stock. In other words, they are expecting Cineworld’s share price to fall. When I last covered the stock in December, the short interest was almost 9%. So the fact that this number has come down tells me that investors seem to be turning bullish on Cineworld shares. Heavily in debt While I expect Cineworld shares to rise in the short-term on the back of a coronavirus recovery, I’m concerned over its debt pile. This has been growing and I’m worried whether Cineworld can afford to pay it off in the long run. In November, the cinema operator secured $750m in additional liquidity to support the business. It also announced that its banks had agreed to waive all of its covenants until June 2022. I’m pleased that Cineworld has some breathing space in the short term. But I reckon the debt burden could weigh down on Cineworld shares in the long term. Changing consumer habits My other concern is the changing habits of the consumer. Streaming services such as Netflix, Disney+, and Amazon Prime are becoming popular and pose a threat to Cineworld. The pandemic may have even caused a long-term behaviour shift. There are concerns over studios releasing their films directly onto the streaming platforms. I even think watching movies will now have to contend with playing video games, which have also proven popular during the pandemic. As a long-term investor, I don’t think the investment case for Cineworld shares sound too compelling. For now, I’ll just be monitoring the stock. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Premier Oil and Cineworld: why I’m not buying these shares Forget the Cineworld share price: I’d buy this cheap FTSE 100 stock This is what I’d do right now about the Cineworld share price Cineworld share price zooms past 100p! Would I buy it now? The Cineworld share price is up 250% in four months! But I’m not buying Nadia Yaqub has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Netflix, and Walt Disney and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld shares are soaring in 2021. Should I buy? appeared first on The Motley Fool UK.
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  42. The Cineworld share price bounces back from 88p! Would I buy this stock today? (25/03/2021 - The Motley Fool UK)
    Today was a lively one for Cineworld (LSE: CINE) shares. After closing at 102.8p on Wednesday, the Cineworld share price oscillated wildly. As I write, CINE shares hover around 94.3p, down 8.5p (8.3%) overnight. But this drop masks some major price moves this morning. The Cineworld share price plummets This morning, the share price went into freefall. After gapping down at the open, it slumped to a low of 88.24p. That was a collapse of 14.56p, or a seventh (14.2%). However, this proved to be the low for the FTSE 250 stock, as it rebounded by over 6p. What caused this share slide? The answer is that the company released a shocking set of results for 2020. Cineworld lost a whopping $3bn last year Cineworld is the world’s second-largest cinema chain, with operations in 10 countries at 767 locations. Around three-quarters (73%) of its revenues come from the US, where most states have ordered cinemas to close. As a result, the share price crashed steeply last year. If Cineworld’s 2020 results were a film, I suspect that they would be a horror movie. Here’s the headline figure: the embattled cinema chain lost $3bn before tax last year, versus a pre-tax profit of $212m in 2019. CEO Mooky Greidinger said that this was the group’s first yearly loss in its 91-year history. For sure, with cinemas closed around the globe, the business model was in big trouble. Even so, this loss was higher than most analysts predicted, hence the initial steep fall in the Cineworld share price. With cinemas shut down, yearly revenues collapsed by four-fifths (80%) to just $852m. However, with locked-down consumers eager to get back to normal, Cineworld expects 2021/22 to be a bumper period. That said, the group also warned that box-office attendance would be least 5% below pre-Covid-19 levels until 2024. With bad news like this, it’s no wonder that the share price languishes at 30.55p — almost a quarter (24.5%) — below its 52-week high of 124.85p on 19 March (just six days ago). Net debt explodes to $8.3bn In this horror movie, what frightens me most about Cineworld is its colossal debt burden. At present, the cinema chain’s shareholder equity is valued at around £1.3bn ($1.78bn). Today, the firm announced that it will raise another $213m of liquidity through a convertible bond maturing in 2025. This is on top of existing net debt of $8.3bn. That’s right: the company’s debt is almost 4.7 times its outstanding equity. Were interest rates not so incredibly low, this debt mountain might prove crippling or even fatal. Even so, with such massive obligations hanging over the business, I fear for the Cineworld share price. Would I buy Cineworld at this share price? So would I buy? My answer is an immediate and resounding no. As a veteran value investor, I aim to buy into companies with predictable revenues, earnings, cash flow and dividends. For me, the Cineworld share price is a high-risk bet on rapid growth of the movie/popcorn industry. Of course, I could well be wrong and the Cineworld movie might turn into a feel-good comedy, one leaving shareholders laughing as the shares soar. That really could happen if a much-talked-about leisure spending boom comes about. Whatever happens, just like a Michael Bay blockbuster, there’s going to plenty of action, adventure and plot twists along the way! The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Here’s why Cineworld share price is crashing today This is why I’d ignore the Cineworld share price and buy other cheap UK shares! 1 stock I’d buy and 1 I’d avoid for my Stocks and Shares ISA Cineworld shares dip on reopening news: what I’d do now 3 reasons why the Cineworld share price rallied 16% last week Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld share price bounces back from 88p! Would I buy this stock today? appeared first on The Motley Fool UK.
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  43. 3 reasons why the Cineworld share price rallied 16% last week (22/03/2021 - The Motley Fool UK)
    In terms of companies that have been hit hard by the pandemic, Cineworld (LSE:CINE) definitely ranks highly. The UK’s largest cinema operator has 127 sites here, as well as hundreds of others in the US. Due to lockdowns, cancelled movie releases and very limited demand for consumers to enter a confined space surrounded by strangers, the business has really struggled. Technically, the Cineworld share price is up 121% over the past year, but this time period cuts off the stock market crash from earlier in March 2020. Upcoming results Pulling the time frame out to two years gives a better indication on the state of the company. The Cineworld share price is down almost 50% over two years. If I now pull in the time frame to one week, it shows me that the shares rose an impressive 16%. From this I gather that the long-term past performance hasn’t been great, but it seems to be improving in the short term. One reason for this is the anticipation of full-year results. These are due out this week, with an expectation of posting a pre-tax loss around £500m. So why is the Cineworld share price rallying? I think it’s a similar story to what we saw with Rolls-Royce shares recently. Despite posting a loss of £2.9bn, the shares rallied simply because investors were prepared for the bad news. The loss was discounted, and the outlook was positive for 2021, so people bought the shares. I think this is the same case for Cineworld. I already know a large loss is coming, so that won’t surprise me. It’s actually more likely that there will be something positive to take from the report, such as higher liquidity or new plans to bounce back. It seems I’m not alone in my thinking, and investors are buying Cineworld shares in anticipation of this. Cineworld shares pushed higher by vaccine news Another reason the Cineworld share price rallied last week was due to positive news concerning the vaccination initiatives in both the UK and US. Here in the UK, over half the adult population has been vaccinated. In the US, the vaccination figure hit 100m last Friday. Both are positive statistics that support the reopening of cinemas. In the UK, cinemas are expected to reopen in the middle of May. Cineworld secured over £500m of funding late last year that will keep it running until May. So the vaccine numbers coming out from the Government are helping to push the Cineworld share price higher. It looks like the business may be able to survive. Yet despite this short-term boost, I still see plenty of risks to the Cineworld share price being able to continue such a rally. I don’t have time to run through them all, but one key issue is the rise of competitors such as Netflix. We’ve got the Oscars coming up, and incredibly Netflix has a record 35 nominations! So traditional cinemas could quickly become irrelevant as streaming platforms (turned studios) take over. Also, even with a bounce-back, it may take some time for cinema attendance to reach 2019 levels. And let’s not forget the heavy debt load the company has. From my point of view, I won’t be buying Cineworld shares any time soon, even with the move higher recently. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Cineworld share price is rising: could there be further to go? Should I buy AMC stock or Cineworld shares? Cineworld shares are soaring in 2021. Should I buy? Premier Oil and Cineworld: why I’m not buying these shares Forget the Cineworld share price: I’d buy this cheap FTSE 100 stock jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 reasons why the Cineworld share price rallied 16% last week appeared first on The Motley Fool UK.
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  44. What will the Cineworld share price do next? (29/04/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price has risen like the proverbial Phoenix from the Flames during the past six months. The successful development and then rollout of Covid-19 vaccines in the US and Britain has helped the UK leisure share gain more than 280% in value during the past six months. That said, the appeal of Cineworld’s share price has lost some momentum in recent weeks. After touching its most expensive since February 2020, above 120p per share last month, the cinema chain has dunked back below the psychologically-critical 100p marker again. This could be down to simple profit-taking following those heady gains of recent months. I think though, a recent surge in global Covid-19 infections could also be prompting UK share pickers to get jittery again. The question is, what direction will the Cineworld share price now head in? Why Cineworld’s share price might soar again As I said, there’s no question vaccine rollouts in Cineworld’s core American and UK markets have been a hit. It’s why the company has been making plans to fling open its doors to the public again in these territories. Fans of Cineworld are hoping that moviegoers will be banging down the doors to get back into theatres. The popularity of cinema as a mass medium has endured over the past century, despite the creation of television, the internet and other technological diversions and leisure activities. Indeed, the global box office hit record highs of $42.5bn in 2019 before the pandemic hit. It’s hoped demand for cinema tickets will be particularly strong after more than a year of Covid-19 lockdowns. Booking levels among some holiday operators like Saga have been extremely encouraging and illustrate how eager people are to get out and about again. Stronger-than-expected movie ticket sales for the same reason could help power Cineworld’s share price higher once again. Careful now… That said, I’m not tempted to buy the Cineworld share price. Firstly, global Covid-19 infection rates are rising rapidly again. This has the potential to blow the cinema operator’s reopening plans wildly off course. On top of this, the ongoing coronavirus crisis could mean audience numbers in its theatres will have to be severely limited, dealing a huge blow to hopes of a strong revenues comeback. This is particularly worrying considering the huge amount of debt Cineworld is nursing. Net debt at the UK leisure share ballooned to a jaw-dropping $8.3bn as of the end of 2020. This was up $600m from a year earlier. And the business has continued to add to the pile in recent weeks. Earlier in April, it passed a resolution to suspend its borrowing limits to issue a $213m convertible bond. Even if Cineworld avoids any more significant coronavirus-related problems, I worry about how the business will be able to get its debt pile down, given the spectacular rise of streaming services, not to mention the soaring problem of movie piracy. I still think the long-term outlook for the Cineworld share price remains fraught with danger. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading Cineworld shares: should I buy now? Will the Cineworld share price recover in 2021? The Cineworld (CINE) share price has dived 22% in 1 month. What next? 2 UK penny stocks I’d consider picking now Is Cineworld stock a good investment right now? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What will the Cineworld share price do next? appeared first on The Motley Fool UK.
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  45. Cineworld shares dip on reopening news: what I’d do now (23/03/2021 - The Motley Fool UK)
    The Cineworld Group (LSE: CINE) share price fell when markets opened on Tuesday morning, despite the company revealing plans to reopen US cinemas in April. UK cinemas are set to follow in May. Cineworld also revealed the outline of a new exclusivity deal with Warner Brothers studios. Starting in 2022, the cinema chain will be able to show films in US and UK theatres for a guaranteed period before they’re available through video-on-demand services. Today’s news seems positive to me. But Cineworld’s share price has already risen by 75% this year and by 165% over the last 12 months. Is it too late for me to buy this reopening stock — or is there more good news to come? What I like Let’s start with the positive news from today’s announcement. Cineworld’s Regal business in the US generates 75% of the group’s revenue but has been closed since October. Selected theatres will now reopen with Godzilla vs Kong on 2 April, followed by a wider opening for Mortal Kombat on 16 April. According to the company, capacity restrictions will allow occupancy of 50% or more in most US states. CEO Mooky Greidinger says that this means “we will be able to operate profitably in our biggest markets.”  I reckon that could be positive for Cineworld shares. Warner Brothers backs cinemas The new deal with Warner Brothers also looks good to me. Starting in 2022, Cineworld will get a 45-day exclusive period to show new films in US cinemas before they’re released to Warner Brothers’ premium video-on-demand service. In the UK, Cineworld will get a 31-day exclusivity period. This deal is particularly significant, in my view, because it reverses Warner Brothers’ decision to release its new films directly to premium video-on-demand in 2021. If the Hollywood giant had chosen to continue this policy into 2022, I reckon it could have made life tough for cinema chains. Are Cineworld shares still cheap? Cineworld has a good story. The Greidinger brothers who run the business are said to be cinema fanatics. They’ve built the group into the world’s second-largest cinema chain. I like a good story as much as anyone. But I don’t invest my hard-earned cash into stories unless I’m happy that the numbers stack up nicely too. Cineworld shares were probably cheap at 40p a year ago. But at 110p today? I’m not so sure. This share price values the stock at 14 times 2022 forecast earnings, despite the group’s $8bn net debt. That seems high enough to me. I’m also aware that today’s press release didn’t include any details of the financial deal Cineworld has struck with Warner Brothers. From what I can see, the movie studio had a stronger negotiating position than the cinema chain. Cineworld raised $750m of extra funding in November so I don’t expect the company to run out of money. But I’m uncomfortable with the group’s high debt levels. When business returns to normal, I think there’s a risk that shareholders could be asked for extra cash to help cut debt. I reckon this reopening stock is already trading at fair price. I won’t be buying Cineworld shares for my portfolio at this time. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading 3 reasons why the Cineworld share price rallied 16% last week The Cineworld share price is rising: could there be further to go? Should I buy AMC stock or Cineworld shares? Cineworld shares are soaring in 2021. Should I buy? Premier Oil and Cineworld: why I’m not buying these shares Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cineworld shares dip on reopening news: what I’d do now appeared first on The Motley Fool UK.
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  46. Does the Cineworld share price risk/reward stack up at 67p? (28/07/2021 - The Motley Fool UK)
    Trying to make accurate calls on the Cineworld (LSE:CINE) share price over the past 18 months has been very hard. I was bearish on the stock for much of last year as the pandemic forced cinemas to close or have reduced capacity. A few months ago, I thought the share price was becoming oversold as it broke below 100p. With it now trading at 67p, do the potential rewards offset the risks? The correlation with the virus So-called Freedom Day a week ago saw the Cineworld share price drop to its lowest level this year, below 60p. The concern was that taking away all restrictions was likely to see an increase in infection rates and self-isolation. To a certain extent, this has been the case. Self-isolation numbers have increased in what has been dubbed a ‘pingdemic’. However, the actual confirmed cases have been falling. The seven-day moving average is now 26,888, having been above 40,000 on Freedom Day. The initial concern that has faded has allowed the Cineworld share price to rally to current levels of 67p. This already flags a key point to me. Cineworld investors are clearly sensitive to the impact of any future Covid-19 events. Of course, this does make sense given the nature of business. However, I need to be careful as short-term movements in shares will likely be driven by Covid-19 headlines instead of fundamentals from Cineworld. So when thinking about the risk/reward situation, it really depends on my outlook for the virus. I was very positive a month or so ago, but am starting to cool down my outlook. I do feel that for the second half of this year we could continue to require plenty of caution. As a result, I see long-term rewards from buying Cineworld shares now, but a risk of further downside in the coming months. Cineworld shares suffering from poor finances Aside from the virus, the other factor I need to consider when weighing up the risk and reward is the financial health of Cineworld. Interim results are due out in early August, so this will give me a lot more clarity. The latest information I have is the full-year results that were released back in spring. Total liabilities were reported at over $10bn, with a loss before tax of just over $3bn. The loss is a drain on cash flow, but increased borrowings can help to provide some help in that regard. I think the reward is there if Cineworld has a clear strategy on how it will reduce debt and liabilities can come down to a sustainable level in coming years. However, the message could be that more borrowing is needed. If so, I think the risk of buying shares even at 67p is too high. It can be very easy to get into a spiral of refinancing and adding debt. Overall, the Cineworld share price does carry a high risk with it at the moment. If I have a positive outlook on virus containment and am bullish on management having a strategy for debt, I think the reward stacks up. Personally, I don’t have a high conviction on either right now, so won’t be investing in the short term. The post Does the Cineworld share price risk/reward stack up at 67p? appeared first on The Motley Fool UK. One Killer Stock For The Cybersecurity Surge Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028 — more than double what it is today! And with that kind of growth, this North American company stands to be the biggest winner. Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it… We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify. Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time… More reading Will the Cineworld share price return to 100p? Should I buy Cineworld shares now? Cineworld shares: 3 reasons I bought them  Forget Cineworld’s share price rise! I’d rather buy this penny stock right now What’s going on with the Cineworld share price jonathansmith1 has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  47. What’s next for the Cineworld share price? (11/08/2021 - The Motley Fool UK)
    Leading cinema chain Cineworld (LSE: CINE) releases its interim earnings tomorrow. Its last financial update was for the full-year 2020. The next one will cover the first six months of 2021.  What to expect from Cineworld’s earnings update? I reckon these numbers will still be lower than 2019 figures, since cinemas reopened only in the second quarter of 2021. However, they could have improved from last year, going by AMC Entertainment’s recently released figures. This is because the US market is a big one for both cinema chains. AMC’s half-year results certainly showed significantly improved revenues compared to 2020. This was partly because of the lifting in lockdowns, but also the box office performance of recent action-thriller movies too. Also, it pointed to consumer spending on food and beverages, which accounts for more than a third of its revenues.  I also expect encouraging revenues because Cineworld already reported a strong opening for Peter Rabbit 2: The Runaway when cinemas reopened in the UK in May. It also confirmed that most of its US cinemas had also opened. It would remain loss-making, though I think.  Cineworld share price trends are not as bad as they seem On the whole, I reckon the numbers will be positive for the stock that has really been going through it. After touching levels of 120p in March, the Cineworld share price has been dropping. It has lost half of this value already.  But here are two aspects to chew one. One, despite the decline, its share price is still a whole 20% higher than that a year ago. Two, since the market crash of March 2020, its share price is up threefold.  But what about the debt? I do get that Cineworld is sitting on a pile of debt. But this has also been a most atypical time. Coronavirus-impacted stocks from airlines to hotels have seen share price increases that are hard to justify looking at their fundamentals. Cineworld is another one of them.  But, I think its stock gets more than its fair share of flak because it was already hugely indebted before the pandemic, ever since it acquired the US-based Regal Cinemas in 2019. Covid-19 added to this. It does make it a riskier stock. But because of the existing debt pile, not because coronavirus suddenly added $4.5bn to it.  What these numbers do underline for me, is the risks in making acquisitions by taking on big debts. We just never know when times will change and the debts become unsustainable.  Why I like the Cineworld stock But the same logic flows in reverse too. An economic boom can wipe out its woes fast. If the economy starts growing like it did in the mid-2000s or indeed the ‘Roaring 20s’, I doubt if Cineworld’s debt will look quite as large in comparison to its market valuations or fundamentals.  I have already bought the stock, and as far as I am bullish on the economy, it continues to look like a good buy. The post What’s next for the Cineworld share price? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Cineworld share price is falling. Can it recover? Is Cineworld’s share price too cheap to miss? Are Cineworld shares a bargain? Meme stock investing: 2 top shares to buy right now The Cineworld share price is falling! Is now the time to buy? Manika Premsingh owns shares of Cineworld Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  48. Are Cineworld shares a bargain? (06/08/2021 - The Motley Fool UK)
    Cineworld (LSE: CINE) shares are currently trading at 65p. This is a stark contrast to where the stock was earlier in the year, at over 100p. In fact, over the last month, the share price has fallen more than 20% (but is still up 85% during the past 12 months). So the question I’m asking myself is are Cineworld shares a bargain? I don’t think they are. While the stock has fallen, I still wouldn’t buy it. I’ve previously commented on some of the problems the cinema operator is facing. And these haven’t gone away. Debt One of my concerns about Cineworld is its huge debt pile. Last week the company released a short update saying that it has secured $200m of incremental loans maturing in May 2024. It also said that it has agreed to covenant amendments on certain of its existing debt facilities. It’s worth noting here that the firm has said the $200m of loans don’t “have a material impact on the Group’s weighted average cost of debt”. In other words, investors shouldn’t be worried by Cineworld taking on this new liability. But I’m concerned. What this highlights is that it isn’t out of the woods yet. Things are still challenging otherwise it wouldn’t have taken on more debt. It has said that it has enough liquidity for now. But I’ve heard this before and am taking this with a pinch of salt. I think this is one of the reasons why Cineworld shares have fallen recently. Covid-19 restrictions in the UK have eased and so this should have helped the share price. But it hasn’t so far. I reckon reality has set in and investors are concerned about the long-term implications of the debt pile. Bright side It isn’t all doom and gloom. Trading conditions for the firm are improving. Even the company believes that it’s now well-positioned to benefit from the pent-up customer demand. The other thing that should drive people to watch movies on the big screen is the strong film schedule in the second half of 2021. Let’s not forget that some big movies such as James Bond: No Time To Die are expected to be released in the coming months. The firm is also going to publish its 2021 interim results on 12 August. It could report better numbers in the second quarter, especially as the film industry is recovering. This could provide a boost for Cineworld shares. Shorted But I’m still concerned. According to shorttracker.co.uk, it’s still the most shorted public company on the London stock market. This makes me nervous as it’s clear there are still some investors who are betting that the share price will fall. Couple this with any negative news, such as taking on more debt, and it’s no wonder why Cineworld shares have been falling recently. I’m not going to dip my toe in just yet. Should I buy now? The stock remains on my watch list. While the trading environment may be improving, I reckon the company may still be cautious on its forecasts due to the uncertainty surrounding Covid-19 especially during the winter months. So I’m not buying at the moment. The post Are Cineworld shares a bargain? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Meme stock investing: 2 top shares to buy right now The Cineworld share price is falling! Is now the time to buy? Is the tumbling Cineworld share price a buying opportunity? How the Cineworld share price compares to Netflix The Cineworld share price could fall further and here’s why Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  49. The Cineworld share price has soared 300%! Should I buy now? (28/02/2021 - The Motley Fool UK)
    The Cineworld (LSE: CINE) share price has risen in value by around 300% since the beginning of November. This outstanding performance puts the stock in the ranks of the best-performing London-listed firms over the past six months.  Unfortunately, this performance only tells us part of the picture. Over the past 12 months, the stock is off around 41%. Investors who were unfortunate enough to buy the stock close to its five-year high of around 324p in mid-May 2017 have seen a loss of approximately 70%. Still, past performance should never be used as a guide to future potential. As the world looks forward to opening up and moving on from the coronavirus crisis, the Cineworld share price, and other companies like it, could continue to move higher as profit and revenue growth returns.  As such, I’ve been taking a closer look at the stock to see if it could be worth adding some shares to my portfolio today.  Cineworld share price outlook  Under the current UK reopening plan, all coronavirus restrictions will be lifted by the middle of the summer. That suggests Cineworld will be able to open its theatres in the UK by this date. However, just because they’re open doesn’t mean customers will return. What’s more, the group has operations around the world. So, even if the UK manages to stick to its plan, it could be some time before all of Cineworld’s venues are back in business.  Even then, it could be years before customers feel comfortable enough to return. That could mean it will take years for the firm’s sales to return to 2019 levels. Indeed, they may never return to this level.  Of course, that’s the worst-case scenario. In the best case, consumers could return quickly and splurge funds saved throughout lockdown. Some economists are already predicting a significant increase in consumer spending when lockdowns are lifted due to pent-up demand.  In this best-case scenario, the Cineworld share price may increase further from current levels. But there are other risks to the company’s success. It has a lot of debt, and the rise of online streaming has drawn customers away from cinemas.  Big payout  Management seems optimistic the group will be able to return to previous levels of activity. It recently put in a bonus scheme that will pay out a total of £208m if the Cineworld share price returns to 380p in three years.  This provides an enormous incentive for management to drive the share price higher and create value for shareholders.  Overall, I think the Cineworld share price could produce large returns for investors, even after its recent performance. However, these returns are far from guaranteed. As such, I think there’s too much uncertainty surrounding the outlook for the business for me to buy the shares. So, I wouldn’t buy the stock right now. I want to wait and see how the reopening of the economy goes and its impact on Cineworld before taking a position. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I’d ignore the Cineworld share price and buy other UK shares for my ISA Cineworld and easyJet shares: should I buy the reopening trade? I’d ignore the Cineworld share price and buy this US stock for my ISA instead Why I’d ignore the Cineworld share price rally and buy these UK shares for my ISA Why I’d avoid the Cineworld share price and buy this leisure stock instead Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Cineworld share price has soared 300%! Should I buy now? appeared first on The Motley Fool UK.
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