Cineworld closes cinemas in US and UK, collapsing 30% on the stock market

0
37
Cineworld closes cinemas in US and UK, collapsing 30% on the stock market

Cineworld closes cinemas in US and UK, collapsing 30% on the stock market

Cineworld closes cinemas in US and UK, collapsing 30% on the stock market

Cineworld has announced the temporary closure of all its theaters in the United States, United Kingdom and Ireland as a result of the delay of the major premieres planned between now and the end of the year, such as the latest installment of James Bond, due to the coronavirus pandemic.

This measure will affect 45,000 employees. The announcement has caused the collapse of
Cineworld shares, which fell by 30% this morning on the London Stock Exchange.

The second largest chain of cinemas in the world, among whose brands is Regal cinemas, had already warned its shareholders that if it had to close its theaters again, as happened in the first wave of the pandemic, it would need more provisions. In the first half of the year it suffered losses of $ 1.64 billion.

The coronavirus pandemic has dealt a severe blow to movie theater chains and, in particular, to Cineworld, which has incurred an 87% drop on the stock market since 2020 began.

Theaters had to remain closed until they could reopen, with restrictions, in the summer. Now that a second wave of infections is becoming a reality, big production companies have decided to delay the most anticipated releases until 2021.

Admiral Markets MetaTrader 5. Cineworld daily chart

Source: Admiral Markets
MetaTrader 5. Cineworld daily chart. Data range: from February 23, 2018, to Octobe 5, 2020. Prepared on October 5, 2020, at 12 noon. Keep in mind that past returns do not guarantee future returns.

As we see in the graph, the coronavirus pandemic has sunk Cineworld shares, although it had been in a downward trend over the past two years:

  • It closed 2019 with a drop of 16.7%, mainly due to the rise of streaming platforms
  • The year 2018 ended with a decrease of 0.97%
  • 2017 ended 6.37% up
  • 2016 finished 0.44% up

If you want to take advantage of downtrends, with Admiral Markets UK Ltd you can invest in CFDs on stocks, including Cineworld. You can do it in a virtual environment with a demo account or open a live trading account by clicking on the following banner:

Trade Forex & CFDs

INFORMATION ON ANALYTICAL MATERIALS:

The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter “Analysis”) published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:

1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.

2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.

3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.

4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter “Author”) based on personal estimates.

5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.

6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset’s value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.


Source : https://admiralmarkets.com/analytics/traders-blog/cineworld-crash-stock