Sumary of Cineworld shares: 3 reasons I bought them :
- The FTSE 250 cinema chain has been highly sensitive to investor sentiment in the past year.
- It did not help that last week the markets had a mini meltdown as coronavirus infections grew once again.
- #1. Improved market sentiment Market sentiment is back up, indicating that the meltdown was a brief scare rather than a real sign of a market crash.
- This is particularly encouraging for Cineworld, whose dominant markets are the US and the UK. In both of them, at least 50% of the people have had the jab.
- #2. Improved prospects Besides this, early indications of performance post reopening have been encouraging.
- More recently, company CEO, Mooky Greidinger, has expressed satisfaction with the opening performance of superhero movie Black Widow.
- The Disney movie was simultaneously streamed on the producer’s own streaming channel.
- Further, he believes that by 2022, which is just five months away now, box office numbers could return to their 2019 levels.