Cineworld share value what happened?

noh

JackRS wrote: »

Thank you so much for that link if only I found that before.


My concern is there was a deadline to sell the rights which was 9 Feb, only got the letter on 8 Feb. So what I'm trying to find out is if you do nothing, don't return any forms what happens? The link said this:


4. DO NOT TAKE UP THE RIGHTS
You could allow your rights to lapse. If the Cineworld share price is below the offer price of 157p on the subscription deadline, the nil-paid rights would expire worthless.
But if they are trading above 157p then you may receive a cash payment per nil-paid share approximately equal to the Cineworld share price less the offer price.

You should receive a cash payment for your lapsed rights.

greendoor665

As an investor, the only sensible strategies are to take up your rights, sell them on, or a combination of both. Doing nothing means you lose money.

Linton

greendoor665 wrote: »

As an investor, the only sensible strategies are to take up your rights, sell them on, or a combination of both. Doing nothing means you lose money.

If you dont take up the offer the Rights are sold anyway. The OP should be receiving a cheque at some stage.

Alexland

Thrugelmir wrote: »

Cineworld offer a scheme called unlimited. As the name suggests one can watch as many movies one wants for less than £18 per month. Provides a regular secure cashflow. Simply having greater footfall no doubt generates more additional revenue.

Only invest directly in a business you understand. Otherwise best left to fund manager to analyse.

Even with a subscription model and assuming they sell enough snacks I still wonder how they make enough margin to cover the rent, rates and wages let alone the HQ costs.

I am overly pessimistic on the potential downside risk of most individual businesses which is why I like funds.

Linton

One extra bit ......

The OP reported that history had appeared to have changed with much higher share values remembered from last year than are now shown in charts. The answer is yes, history is changed in these circumstances so as to ensure the share prices before and after can be sensibly compared.

Thrugelmir

Alexland wrote: »

Even with a subscription model and assuming they sell enough snacks I still wonder how they make enough margin to cover the rent, rates and wages let alone the HQ costs.

I am overly pessimistic on the potential downside risk of most individual businesses which is why I like funds.

My earlier comment was simplistic. Though Cineworld appear to have a business model that works. No business is immune to a downturn. The cinema industry is renowned for being dependent on blockbusters such as Star Wars to make serious money.

apt

There's a bit of a price war going on. My local multiplex is £4.99 any film any time.

aroominyork

Alexland wrote: »

I am overly pessimistic on the potential downside risk of most individual businesses which is why I like funds.

... which are made up of individual businesses.

Alexland

aroominyork wrote: »

... which are made up of individual businesses.

Of course but at least it spreads the risks so I don't end up with a sinking without hope disaster share on my hands.

economic

Alexland wrote: »

Of course but at least it spreads the risks so I don't end up with a sinking without hope disaster share on my hands.

About 25% of my stock portfolio are in single companies. companies like amazon, jp morgan, microsoft, british american tabacco.

Some have done very well whilst others not so well. However overall i am diversified in my single company portfolio. Sometimes its worth taking more of a risk for a bit of alpha.