Time for a quick update on Cineworld post its combination with Cinema City and the completion of its associated fund raising. The acquisition got the relevant regulatory clearances and the rump of the rights issue was placed with institutions last week.
The shares have come back from above 400p post the deal being announced as the shares went ex the heavily discounted rights and the market has digested the details of the deal. It seems to have led to a few small upgrades and final results are due next month. Technically the shares price has closed the gap which opened up on the announcement of the deal and at 340p is now close to its 200 day simple moving average which comes in at around 333p. Otherwise the shares seem to have found support at around 320p in recent months.
Valuation wise they are now on around 15x and yield 3.6% covered 1.84x based on current 2014 forecasts, which seems OK without being outstanding value as indicated by a 67 value score on Stockopedia. However, I'm happy to run with it as part of a broadly based portfolio as it brings a good 30% or so market share of the domestic cinema market and now has an international growth angle on top.
While I don't personally get the current fascination with all these comic book heroes, I guess it give the studios lots of different films and merchandise to churn out - but as long as the kids like it who am I to complain. Talking of klds though I am looking forward to taking my boy to see the Lego Movie at half term as you are never too old for Lego I guess?
Finally here is a link to a site which has lots of information on upcoming films and trailers. If you see one that takes your fancy hopefully your local Cineworld will be your destination.