Cineworld share price has reached only 70p. What next?

It seems that Cineworld (LSE: CINE) The embarrassment that has finally come out of the last two months. I’m writing this Friday afternoon, FTSE 250 The movie chain is trading above 70p. This is the first time since July that this level has been broken.

Signs of a run-up are visible from the middle of this month. Cineworld’s share price fell to around ০ 0p, but soon began to rise. It had risen about 13% during yesterday’s close, closing just below 70p. Depending on its appearance, it may now end the week above that level.

James Bond saves the day

I bought the stock a few months ago. But that’s what I’m going to buy right now, the key question I’m going to ask here is: are there really positive improvements here that could push Cineworld stock prices even higher?

Probably a factor as to why they’re doing so poorly. Ticket sales for this went live on 13 September. Shortly afterwards, Cineworld’s share price began to rise. Apparently James Bond: No time to die Has seen the highest interest rates since the epidemic. And it’s the first in a blockbuster series scheduled for release, which has been blocked so far due to a lockdown.

A lesser problem to deal with

In addition, Cineworld said earlier this month that it had reached an agreement with dissident shareholders of US-based Regal Entertainment Group that it had acquired in 2018. They used a different method, which resulted in much more evaluation. However, the court found it biased. They have acknowledged that taxes announced in 2018 will be reduced in the United States Although the evaluation has some ward upward effects. Cineworld was then asked to make a relatively small difference in quantity.

On the face of it, it doesn’t seem to be the biggest cause for concern. However, at a time when its condition is improving, I think it might be a good idea to focus on something other than the actual management of the business.

What can I do about Cineworld stock

There is no doubt that Seinworld can really improve a lot before it comes out of the jungle. Regal’s acquisition had already raised an eyebrow. It took a huge debt to buy the company. It could pay off well over time, unless the epidemic happened the following year. It only increased his hatred. And I think it’s going to be a worrying issue for a while.

However, if the pace of the film business continues to grow, I think it will become less significant over time. I think its share price is expected to continue to rise as more movies come to the screen and the epidemic goes down further, I think. The price of Cineworld shares has already risen about 77% in the last year, and I think it could rise even more if the risks are under control. This is still a buy for me.

Monica Premsingh owns shares in Cineworld Group. Motley Flower UK has no position on any of the shares mentioned. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.

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