This is what I’d do right now about the Cineworld share price

first_imgThis is what I’d do right now about the Cineworld share price Our 6 ‘Best Buys Now’ Shares John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Netflix 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. “This Stock Could Be Like Buying Amazon in 1997” 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. Simply click below to discover how you can take advantage of this. UK share prices have been on a bumpy ride over the past 12 months. And the Cineworld Group (LSE: CINE) share price has been on a particularly wild ride. Having slumped to record troughs below 25p per share last March, the leisure giant has rebounded strongly. It was last trading four times more expensively than it was during those troughs above 100p.Despite this recovery, though, the Cineworld share price is still off the 200p it traded at at the start of 2020. Does the cinema chain still offer plenty of upside for long-term UK share investors then?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…Looking on the bright sideThere are several reasons to be optimistic about Cineworld’s share price. These include:#1: A successful vaccine rollout. Cineworld’s share price began to take off last autumn when positive testing news surrounding Covid-19 vaccines emerged. This supercharged hopes that the chain would be able to reopen its theatres to the public in early-to-mid 2021. Optimism has continued to grow thanks to successful vaccination programmes in Cineworld’s core US and UK marketplaces. Half-glass-full investors believe cinema-goers will flock back to the box office in droves after being released from lockdowns.#2: US stimulus package to boost bookings. This UK share has only recently entered the US market. But through its Regal theatres, the group generates the lion’s share of profits from its Stateside territory (around 75% by my calculations). The US economy is recovering strongly from the Covid-19 crisis, which naturally translates into better spending power for the American public. And the amount US citizens have to spend on leisure trips and other comforts is likely to receive an extra boost following the passing of a $1.9trn stimulus package earlier this week.Dangers to Cineworld’s share priceThat being said, there are several reasons I think the Cineworld share price could struggle to get back to its pre-pandemic heights, such as:#1: The threat of the streaming giants. The emergence of video-on-demand services from the likes of Amazon and Netflix has been steadily chipping away at the cinema operators over the past decade. It’s possible that Covid-19 has significantly changed the way we watch movies for good. It might be harder to pull people off their couches than some imagine.#2: Changes to the studio model. Recent shifts in the way studios release movies — changes which allow new films to be released on streaming platforms shortly after or even at the same time as in theatres — seriously undermine one of Cineworld’s biggest selling points: they are no longer the only place (piracy aside) to watch freshly-released movies.The verdictSuccessful vaccine rollouts mean there is clearly light at the end of the tunnel for UK leisure shares like Cineworld. But big threats still remain for the company to tackle. In the short term I’m particularly concerned about how full its cinemas will be packed out when its doors are flung open again. Don’t forget that the business still has colossal amounts of debt to pay down (the interest payments alone are eye-watering). I’d much rather buy other British stocks today.center_img See all posts by Royston Wild Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: DCM 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. 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. Royston Wild | Thursday, 11th March, 2021 | More on: CINE last_img

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