Swing Trade: CINE – Cineworld

After my swing trade on NICL (LSE – Nichols) completed and I made almost 10% on it, I’ve been browsing around for the next swing trade. What caught my attention was how Cinemark in the USA had dropped quite significantly over the last few days, I think almost 15%, so I started looking at the cinemas.

Anyway out of the options available to buy on Trading 212, CINE caught my attention. It looks like it’s touching base with it’s low for the YTD, and it’s quarterly net income has been getting stronger and stronger per quarter. I appreciate this is probably a delayed Covid recovery stock but if I can get 10% out of it, why not? https://www.google.com/finance/quote/CINE:LON

I do recognise that Cineworld has a lot of debt right now, but there are some super impressive movies hitting the screens in the next quarter or two and this provides me with some significant confidence. I also doubt the debt needs repaid with immediate demands, and that Cineworld will have a planned out approach to repaying such debt across many years.

I also found some compelling defence for strong sales and this gaves me more confidence regarding this stock. On Fool.co.uk they’ve stated the following:

“We are already seeing positive developments. In its trading update released yesterday, the company revealed that as of October this year, its revenues were back up to 90% of their 2019 levels.” Reference: https://www.fool.co.uk/2021/11/18/heres-why-cineworld-stock-is-my-contrarian-pick-for-2022/

Now thats a 90% return to normal with a stock that pre-pandemic was 181p per stock, and is currently valued at 61p (33% of it’s original value). Many people are still afraid to visit public venues, but the confidence is returning, so watch this space.

Total Shares Purchased: 161
Share Price Paid: 61.17
Date of Purchase: 22nd November 2021
Target Gain: 10%
Target Stock Price: 67.00
Target Date Range: 2-3 months


Update: 2021 November 29:
I have doubled down on this stock. Unfortunately went in just prior to another covid variant hitting the news and the stock price plummeted by 10-20%. Fortunately it looks like the new variant isnt so bad of a concern and it’s a lot of media. What this means is that I purchased a further 195 shares at an average of 51p a share. My new holdings are equal to the below.

Total Shares Purchased: 356.1
Average Share Price Paid: 55.75
Date of Purchases: 22nd November 2021 & 29th November 2021
Target Gain: 16.75%
Target Stock Price: 67.00
Target Date Range: 2-3 months

Note: Please keep in mind I have no financial training and I really dont have a clue as to what I’m doing. Everything here is just me gambling, if you wish to copy then it is of your own choice and free will. I will not accept responsibility for your actions. Above is simply my personal opinion, your decision to agree or disagree is “your opinion”.

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