Cineworld’s share price is rising. Should I buy the stock now?

first_img See all posts by Edward Sheldon, CFA Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Edward Sheldon owns shares in Amazon. 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. The Motley Fool UK has recommended Pearson 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Edward Sheldon, CFA | Monday, 1st February, 2021 | More on: CINE “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Like this one… Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Shares in cinema operator Cineworld (LSE: CINE) have had a great run recently. Since the start of November, Cineworld’s share price has risen from 29p to 75p. That represents a gain of around 160% in just three months.Here, I’m going to look at why the company’s share price has surged. I’ll also discuss whether I’d buy the stock for my own portfolio today.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Cineworld’s share price has surgedCineworld shares have risen for two main reasons. Firstly, news that Covid-19 vaccines have been developed has pushed the stock considerably higher. Investors clearly expect the outlook for the company – which has been forced to close the majority of its cinemas due to social distancing restrictions – to improve this year as the world comes out of lockdown. Secondly, the stock has spiked recently as a result of its high level of short interest. On the back of their huge success buying heavily shorted stocks in the US, such as GameStop and AMC, Reddit traders have piled into heavily-shorted stocks in the UK such as Cineworld and Pearson.I imagine some hedge funds have probably also closed their short positions after seeing what has happened in the US to heavily-shorted stocks. This buying activity has pushed Cineworld’s share price up significantly since mid-January.Should I buy CINE shares today?My investment strategy is based on ‘growth’ and ‘quality’. Essentially, I look for companies set to generate strong growth in the long term that are also financially sound. This strategy suits my investment goals and risk tolerance. Obviously, this approach isn’t suitable for everyone. Taking a closer look at Cineworld, the stock doesn’t appear to meet my investing criteria. For a start, I believe Cineworld’s industry looks set to experience structural challenges in the years ahead due to changing consumer habits. Cinema operators face a lot of competition now from the likes of Netflix, Amazon Prime, and Disney. In the future, we could see more movies released direct-to-consumer as well.Of course, Cineworld’s growth should pick up as the world comes out of lockdown. City analysts expect revenue this year to more than double from around $1bn to $2.3n. However, I have concerns about the long-term growth story here.Secondly, I don’t see Cineworld as a high-quality company. Looking at the financials, a few things concern me. One issue is the large amount of debt on the balance sheet. In a recent update, the company advised it now has aggregate gross debt financing of $4.9bn. This large debt pile makes the company more vulnerable.Another issue is the company’s profitability. In the three years before Covid-19, return on capital employed (ROCE) averaged just 7.5%. This tells me that, in the past, the company hasn’t made a large return on its invested capital. All things considered, I don’t see Cineworld as a good stock for my portfolio. I like to invest in companies that are highly profitable and have strong balance sheets. Cineworld doesn’t tick these boxes at the moment. I think there are other stocks I could buy today that have a better chance of being good long-term investments.  Enter Your Email Address 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. Cineworld’s share price is rising. Should I buy the stock now?last_img read more

FHFA Adjusts Deadline for Purchase of Qualified Loans

first_imgHome / Daily Dose / FHFA Adjusts Deadline for Purchase of Qualified Loans Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Servicers Navigate the Post-Pandemic World 2 days ago 2020-09-24 Christina Hughes Babb Demand Propels Home Prices Upward 2 days ago Related Articles Subscribe Sign up for DS News Daily Share Save About Author: Christina Hughes Babb in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago The Federal Housing Finance Agency (FHFA) Thursday announced that Fannie Mae and Freddie Mac will extend the purchases of qualified loans in forbearance, as well as other previously introduced loan-origination flexibilities related to the national pandemic crisis, until October 31. The special accommodations, which the agency says are aimed at “ensuring continued support for borrowers during the COVID-19 national emergency,” were formerly set to expire at the end of this month.A recap of the originally published “flexibilities”:The FHFA has temporarily approved the buying of “certain single-family mortgages in forbearance that meet specific eligibility criteria set by Fannie Mae and Freddie Mac,” according to the original announcement. At the time, FHFA Director Calabria said, ““Extending [the GSEs]’ ability to purchase these previously ineligible loans will help provide liquidity to mortgage markets. That said, to make homeownership sustainable, lenders have a responsibility to ensure that borrowers can make their monthly mortgage payment.” The full explanation of this provision was updated at the end of August.The FHFA on March 23 instructed the GSEs to ease standards for property appraisals. Changes included more-flexible underwriting guidelines, which allow exterior-only inspection appraisals or desktop appraisals. The FHFA at the time said the measures mean to support the secondary mortgage market’s immediate liquidity needs.The FHFA instructed Fannie and Freddie to loosen verification of employment requirements.Back in March, a representative from the Mortgage Bankers Association spoke with Arkansas news outlet TalkBusiness.net about the appraisal and employment-verification flexibilities.Finally, the FHFA will expand the use of power of attorney to assist with loan closings.​​ Fannie answers FAQs related to power of attorney on its website.”We have expanded the transaction types that are eligible for a party with a connection to the transaction to serve as attorney-in-fact, including an employee of the title insurance company providing the title insurance policy,” Fannie Mae noted. “In addition to limited cash-out refinances, which are currently permitted in the Selling Guide, this exception now also applies to purchase transactions.”The agency noted in each statement that it will continue to monitor development and update its policies when necessary. The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Previous: Serious Mortgage Delinquency Rates on the Rise Next: Where Each Presidential Candidate Stands on Housing September 24, 2020 1,392 Views FHFA Adjusts Deadline for Purchase of Qualified Loans Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days agolast_img read more

Jobs across Australia’s oil and gas sector have declined by 25% during the pandemic

first_imgEngineering, construction and drilling are hardest-hit sectors of Australia oil and gas employmentOil and gas employment in Australia totalled around 110,000 workers in 2019, a tally that has been slashed to 82,000 since the pandemic took hold.Even prior to the coronavirus downturn, job opportunities across the sector had been in decline, with the size of the workforce dropping by 24% between 2014 and 2019.Engineering and construction roles have been the worst affected during the current downturn, accounting for 8,000 job losses – nearly 29% of the overall decline.Drilling has also been hard hit, with more than 1,100 jobs lost in Australia so far this year.However, Rystad estimates that rig demand in the country will grow between 2021-2025, which will offer “a much-needed respite to workers across the drilling segment”.One bright spot could be in the maintenance sector, as producers withhold capital spending plans and instead prioritise maintenance and upkeep of existing assets.“Maintenance has been one of the best performing segments historically, and may, yet again, remain resilient and avoid any steep job cuts compared to the rest of the industry,” the analysis notes.Despite some prospects for labour recovery, Rystad does not expect hiring levels to return to the highs that characterised the industry in 2014.It said: “This can be attributed to the fact that the present downturn has adversely impacted the ability of major operators to take the large-scale risks seen before the 2014 downturn – risks which helped Australia become the largest LNG exporter in the world.“With the breakeven prices for Australian gas assets already at the higher end, and existing LNG terminals failing to run at nameplate capacity, in addition to other concerns, operators are taking a more cautionary approach to new investments.“Combining these factors with the operational complications of Covid-19 means that operators are unlikely to make the large-scale investments they did in the heydays, thus directly impacting the labour requirement in the industry.” Engineering, construction and drilling sectors have been the worst affected (Credit: Kichigin/Shutterstock) Employment in the Australia oil and gas industry has shrunk by more than a quarter during the coronavirus pandemic, and may never return to pre-pandemic levels, according to an analysis.More than 28,000 jobs in the sector have been lost this year, as companies scale back their operations in the face of huge financial pressure triggered by lost demand and low commodity prices.While some jobs are expected to return from 2021 onwards as global markets start to recover from the crisis, a full restoration of the workforce would not occur for “at least” five years – and even that may be in doubt as the industry increasingly responds to the clean-energy transition.The analysis from research group Rystad Energy notes that a minimum of 20,000 jobs are expected to be returned by 2025 as the labour market rebounds after coronavirus, but the changing shape of fuel demand casts some uncertainty.“In the future, the growth in labour demand will not only be driven by oil and gas projects that are under development, but also to a great extent by the infrastructure initiatives undertaken by the Australian government to bring gas prices down across the country,” said Sumit Yadav, an energy service research analyst at Rystad Energy.The Amadeus-to-Moomba gas pipeline, Port Kembla LNG import terminal expansion and the Hunter Gas Pipeline, are all expected to support future employment growth by lowering the price of gas in key domestic markets.In addition, government interventions such as exploration and licensing-cost deferrals in South Australia could offer some relief – as could a “gas-led recovery” from the pandemic, as has been hinted at by the national government. More than 28,000 oil and gas jobs have been lost in Australia this year, and while employment will rebound it may not return to previous highslast_img read more

KLM seeks to terminate ‘unaffordable’ contract with pilots scheme

first_imgKLM, the Dutch airline, is seeking to terminate its obligation to plug any funding shortfalls at its €8.2bn pension fund for pilots (Pensioenfonds Vliegend Personeel KLM).The airline cites the stricter buffer requirements within the new financial assessment framework (nFTK), which, in the KLM scheme’s case, requires a funding ratio of more than 122% to award full inflation compensation. Falling interest rates, however, lowered the pension fund’s coverage ratio from 122% at the end of 2015 to just 112.5% in June.The company said it feared it would have to pay an additional contribution worth hundreds of millions of euros to be able to grant indexation next year. To avoid this, KLM said it would terminate the pension-provision contract with the pension fund on 1 December, with financial news daily Het Financieele Dagblad (FD) quoting a KLM spokesman as saying: “The mandatory supplementary payment poses too much risk to the company, so we therefore want to conclude a new contract.”The pilots union VNV, in a letter to members, described KLM’s plan as an “attack” on pensions provision.The airline, however, said it had proposed an alternative whereby changes would have been made solely to the indexation guarantee.The Pensioenfonds Vliegend Personeel KLM is one of the few pension funds in the Netherlands were indexation is not in arrears.Last year, the airline announced that it wanted its three largest pension funds to switch to collective defined contribution arrangements.In its 2015 annual report, it described the current defined benefit plans – with more than €19bn in combined assets under management – as “untenable” and a burden on the company’s balance sheet.last_img read more

FL couple ‘wins a baby’ in radio contest after struggling with infertility

first_imgOnly in Florida!A Cape Coral couple struggling with fertility have a DJ and radio contest to thank for the newest addition to their daily.A radio DJ in Cape Coral created the “Win a Baby” contest, which gives one local couple the chance to win a free round of in vitro fertilization (IVF).The radio DJ, Jason “Big Mama” Jones created the contest because he and his wife struggled with infertility in the past.Krista and Anthony River were the lucky couple to win the free round of IVF, CBS News reports.The couple struggled with infertility after Anthony was diagnosed with cancer for a second time.The Riveras won the contest in 2017, and they now have a three-month-old son named Garrett.About one in eight couples have trouble conceiving or sustaining a pregnancy, according to a national statistic.The most common alternative for these couples is IVF treatment, which costs an average of $23,000 per cycle and is not covered by insurance in most cases.An IVF cycle includes medicines, procedures, anesthesia, ultrasounds, blood tests, lab work, and embryo storage.This year’s “Win a Baby” contest winners are currently undergoing IVF treatment and hope to start their family soon, according to reports.The radio station reportedly plans to continue the contest once a year.last_img read more

Dodgers salvage split with Rockies thanks to six-run sixth inning

first_imgPreviousLos Angeles Dodgers’ Cody Bellinger, right, follow the flight of his RBI-single off Colorado Rockies relief pitcher Jesus Tinoco in the eighth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers relief pitcher Julio Urias works against the Colorado Rockies in the seventh inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski) SoundThe gallery will resume insecondsLos Angeles Dodgers’ Max Muncy connects for an RBI-single off Colorado Rockies relief pitcher Jesus Tinoco in the sixth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers’ Joc Pederson, right, follows the flight of his single to drive in two runs as Colorado Rockies catcher Tony Wolters looks on in the sixth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers pinch hitter Justin Turner reacts after being hit by a pitch by Colorado Rockies relief pitcher Chad Bettis with the bases loaded in the sixth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers pinch hitter Justin Turner, center, grabs his left arm after taking a pitch to the elbow which forced in a run against Colorado Rockies starting pitcher Chad Bettis in the sixth inning of a baseball game Sunday, June 30, 2019, in Denver. A team trainer, left, and manager Dave Roberts check on Turner. (AP Photo/David Zalubowski)Colorado Rockies’ David Dahl reacts as he crosses home plate after hitting a three-run home run off Los Angeles Dodgers relief pitcher Zac Rosscup in the fifth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Colorado Rockies’ David Dahl follows the flight of his three-run home run off Los Angeles Dodgers relief pitcher Zac Rosscup in the fifth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers relief pitcher Zac Rosscup reacts after giving up a three-run home run to Colorado Rockies’ David Dahl in the fifth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers’ Russell Martin scores on a single hit by Joc Pederson off Colorado Rockies starting pitcher Chi Chi Gonzalez in the fifth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers’ Russell Martin, right, scores on single hit by Joc Pederson as Colorado Rockies catcher Tony Wolters fields the throw in the fifth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers starting pitcher Kenta Maeda throws to first base to put out Colorado Rockies’ David Dahl to end the third inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers starting pitcher Kenta Maeda reacts while throwing to Colorado Rockies’ Charlie Blackmon in the third inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers’ Kenta Maeda tosses his bat after singling off Colorado Rockies starting pitcher Chi Chi Gonzalez in the third inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers starting pitcher Kenta Maeda works against the Colorado Rockies in the second inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)Los Angeles Dodgers’ Cody Bellinger, right, follow the flight of his RBI-single off Colorado Rockies relief pitcher Jesus Tinoco in the eighth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)NextShow Caption1 of 15Los Angeles Dodgers’ Cody Bellinger, right, follow the flight of his RBI-single off Colorado Rockies relief pitcher Jesus Tinoco in the eighth inning of a baseball game Sunday, June 30, 2019, in Denver. (AP Photo/David Zalubowski)ExpandDENVER — By the end of four innings Sunday, the first two games in Colorado were beginning to seem like a fevered dream brought on by the altitude.The Dodgers held a 1-0 lead at that point after having scored just three times in a loss on Saturday. The humidor had finally kicked in.Then things returned to Coors Field’s brand of normalcy. Twelve runs were scored in the next two innings with the Dodgers getting the better of it. A six-run sixth inning lifted them to a 10-5 victory over the Colorado Rockies Sunday afternoon and prevented the Dodgers from losing consecutive series for the first time since April 8-14 (the Cardinals and Brewers).Instead, the Dodgers and Rockies split a four-game series that produced 65 runs and featured 15 home runs. By then, Maeda had tripped three triggers the Dodgers seem to use every time he starts. His pitch count was getting high (88) after giving up two singles to start the inning. He was about to face the Rockies lineup a third time with two left-handed batters, Charlie Blackmon and David Dahl, coming up.“I was ready to stay in. I was ready to fight through that second-and-third hole (after a wild pitch),” Maeda said through his interpreter. “The manager had a different idea.”It wasn’t a bad idea but it didn’t work out well.Saving Julio Urias for later, Roberts opted to go with Zac Rosscup, a lefty reliever who has been very tough on left-handed hitters at times throughout an itinerant career.He didn’t retire either of the lefties he faced. Blackmon beat out an infield single on a topped ground ball that barely made it past the pitcher’s mound, driving in one run. Dahl hit a three-run home run to give the Rockies a 4-3 lead.“Knowing we had Julio for three innings, I just thought the best chance to get Blackmon and Dahl who have had success against Kenta was to get Rosscup in there,” Roberts said. “It was a groundball that obviously Blackmon beat out and a Coors home run. It was a fly ball that I know the probability wasn’t high for it to get out of the ballpark.”An inning later, that bullpen choice didn’t matter so much.Seven consecutive Dodgers reached base on an assortment of hits (four singles and a double), walks (one) and a bases-loaded hit batter to drive in the tying run (Justin Turner). Pederson drove in two runs with his third single. Matt Beaty’s double drove in another. One run scored when the Rockies couldn’t turn a double play on Cody Bellinger and another on the sixth hit of the inning, a single by Max Muncy.With a lead more firmly in hand, Roberts turned to Urias for three scoreless innings in relief. He got Blackmon and Dahl in the seventh inning. Blackmon hit a ninth-inning homer off right-hander Yimi Garcia. Dodgers’ Max Muncy trying to work his way out of slow start “For us to come out of here with a split and to lose no ground to those guys who gave it all they had is a good thing for us,” said Dodgers manager Dave Roberts, protective of his team’s double-digit lead in the National League West. “Definitely glad to get out of here and enjoy an off day tomorrow.”Dodgers starter Kenta Maeda kept the Rockies’ offense silent for four innings, allowing just one hit – a triple by Tony Wolters – and two walks in that time.But the Dodgers gave Maeda only a slim lead with one run off Rockies starter Chi Chi Gonzalez in the first four innings – and Maeda did that as well. He singled with one out in the third, went to third on a single by Joc Pederson and scored when Gonzalez dropped the return throw on a potential 3-6-1 double play.They added two runs in the top of the fifth to make it 3-0 – and again Maeda was in the middle of it. His sacrifice bunt scored one run and he reached first safely when Gonzalez throw hit him in the backside. The second of Pederson’s three singles in the game drove in the second run.“I think Kenta threw the baseball really well today,” Roberts said. “He’s had a lot of success with the slider (in Colorado). A lot of times, spin doesn’t really play here or isn’t as consistent. But even today, there’s something about this place that doesn’t scare him at all, which is great. How Dodgers pitcher Ross Stripling topped the baseball podcast empire Fire danger is on Dave Roberts’ mind as Dodgers head to San Francisco center_img Cody Bellinger homer gives Dodgers their first walkoff win of season Dodgers hit seven home runs, sweep Colorado Rockies Newsroom GuidelinesNews TipsContact UsReport an Error “Today in particular, I thought his fastball command was very good. You could see by some of the swings those guys were taking off him they were surprised by the fastball — both sides of the plate, top of the zone.”That didn’t stop Roberts from pulling Maeda three batters into the fifth inning.Related Articleslast_img read more