Cineworld (CINE LN): Issues to consider
|
Cineworld is about to buy the largest Canadian Cinema operator, Cineplex. They hope that scale will generate synergies that will be good for shareholders.
But before you get too excited we suggest investors consider the following: 1. Cineworld's real margins are dropping, what tricks are being played to enable it to report profits? 2. Cineworld's real cashflow is negative, why is it paying a dividend? 3. What is Cineworld's real leverage? 4. Do sale and leasebacks reduce leverage or do they just provide cash? 5. How will Cineworld fund the interest payments required for the Cineplex deal? |
|
Important
This note is written with the sole purpose of highlighting some issues we think are important.
It is not a recommendation to BUY or SELL any of the securities mentioned and should not be taken as such.
Readers should form their own opinions about the company and seek appropriate advice.
Please read the Bucephalus disclaimer.
This note is written with the sole purpose of highlighting some issues we think are important.
It is not a recommendation to BUY or SELL any of the securities mentioned and should not be taken as such.
Readers should form their own opinions about the company and seek appropriate advice.
Please read the Bucephalus disclaimer.