Hedge funds ramping up bets that Cineworld shares will nosedive


Hedge funds ramping up bets that Cineworld shares will nosedive as it battles high debts, slowing admissions and rising competition from the likes of Netflix

Hedge funds are ramping up their bets that Cineworld shares will nosedive as it battles high debts, slowing admissions and rising competition from the likes of Netflix.

It is the most shorted stock on the London Stock Exchange, with funds piling in ahead of a trading update on Tuesday. Shares were up 1.9 per cent, or 3.9p, to 207.8p yesterday.

Fighting chance: Cinema chain has high hopes for the new Charlie's Angels

Fighting chance: Cinema chain has high hopes for the new Charlie’s Angels

But Cineworld is struggling under a £2.3billion debt pile and £2.8billion of lease commitments, brought on by its £2.7billion takeover of US cinema chain Regal in 2018.

In August it said cinema admissions had fallen 14 per cent in the first half, though it will be hoping to benefit from blockbusters such as Charlie’s Angels before Christmas.



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