Will the Cineworld share price ever recover?

first_img If I’d written about Cineworld (LSE: CINE) shares at the start of 2018, it would have been a very different story from today. The firm had just acquired Regal Entertainment Group for £2.5bn, making it the second largest cinema chain in the world. Large releases such as Black Panther and the latest Avengers outing were also imminent. Fast-forward three years and the picture is very different. Cinemas are shut, the release date of big films has been delayed over and over again and the company is fighting for survival. But the different fortunes of the company are also reflected in the Cineworld share price, which has fallen 75% over the past three years. With vaccines offering some hope for the company, however, is there a chance that it can recover?Problems facing the businessThe main problem facing the company is its current inability to make a profit — a big problem, I have to admit! First-half losses last year totalled over $1.6bn, and there are no indications of any improvement since. This is especially true after the most recent lockdowns in the UK.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…The sparsity of films being released is also a big problem. For example, the new James Bond has already been delayed twice, and reports state that it may be delayed again until November. When cinemas are able to reopen, there may therefore still be a lack of customers. The continued rise of streaming sites, like Netflix and Disney+, may exacerbate this problem. It’s therefore not a surprise that the Cineworld share price has slumped this past year.The debt problemAnother significant worry for shareholders at the moment is debt. Whereas some may have praised the company for its debt-fuelled acquisition of Regal in 2018, this looks significantly less shrewd now. In fact, in part due to this acquisition, the cinema chain now has net debt of over $8bn. This is compared to shareholder equity of just $1.3bn. This is clearly a major problem for a company not making a profit right now and has been a major strain on the Cineworld share price.But the news isn’t all negative. In November last year, the firm was able to issue $450m in debt to help its chances of survival. This debt will also not be called in until 2024. While it adds to the company’s massive debt pile, the Cineworld share price has still been boosted by the news for two reasons. Firstly, it should help the company survive for the short-term future. Secondly, it shows that some creditors have faith that the company will survive, and their loans will be repaid.Would I buy Cineworld shares?At 65p, Cineworld shares are heavily discounted, but I don’t think they’re cheap. They have already risen around 150% since their lows in October, and despite the vaccines, the cinema industry doesn’t look set to thrive after the pandemic. I’m optimistic that Cineworld will survive, but it will come out battered and bruised. This is therefore a stock that I’m not touching and will look elsewhere for bargains. Image source: Getty Images 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. Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix and Walt Disney. 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. Enter Your Email Address 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. Will the Cineworld share price ever recover?center_img Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Stuart Blair | Friday, 15th January, 2021 | More on: CINE Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Stuart Blairlast_img read more

Chelsea boss Sarri close to Juventus switch

first_img0Shares0000Chelsea coach Maurizio Sarri my leave after a single season © AFP / Kirill KUDRYAVTSEVLONDON, United Kingdom, Jun 1 – Chelsea manager Maurizio Sarri has told the club he wants to leave after a single season to join Italian champions Juventus, according to reports on Saturday.Sarri has been an uncomfortable fit with fans at Stamford Bridge and despite winning the Europa League this week and finishing third in the Premier League, there is a perception the chain-smoking coach is unwilling to adapt tactics when things go wrong. Sarri has been widely linked with Juventus, who are seeking a successor to Massimiliano Allegri, although sports daily Gazzetta reported Saturday that Tottenham boss Mauricio Pochettino was also on their radar.Sarri held talks with Chelsea director Marina Granovskaia on Friday and informed her that he wanted to return to his homeland, the reports in Britain and Italy said.Granovskaia, it is said, has promised to talk to club owner Roman Abramovich about his future, but it would seem Chelsea will seek compensation from any suitor.Sarri succeeded Antonio Conte as Chelsea manager last summer after spending three years at Napoli.The 60-year-old enjoyed a tremendous start at Stamford Bridge as Chelsea went unbeaten in 18 games.But Sarri endured consistent criticism from a significant portion of the club’s supporters throughout the campaign and suffered heavy 4-0 and 6-0 defeats at Bournemouth and Manchester City.Chelsea, however, reached the Carabao Cup final, which they lost on penalties to Manchester City, before finishing the season strongly.Sarri claimed the first major trophy of his career when Chelsea beat Arsenal 4-1 in Baku on Wednesday to win the Europa League final, but refused to commit his future to the club, saying: “You know very well that I love the Premier League, the level of the competition, and I am lucky because I am at Chelsea, one of the best teams in the best championship in the world.“So at the moment I am happy, but of course I want to know if the club is happy, if we can improve.“It’s normal I think; I have a discussion with the owner after every season with every club.”Chelsea are facing a transfer ban next season which could restrict their ability to attract a big name coach.The club have been linked with their former midfielder Frank Lampard, now the manager of Championship side Derby, should Sarri leave Stamford Bridge.0Shares0000(Visited 1 times, 1 visits today)last_img read more