|Bid||36.13 x 0|
|Ask||36.28 x 0|
|Day's range||36.15 - 40.98|
|52-week range||18.29 - 322.30|
|Beta (5Y monthly)||0.77|
|PE ratio (TTM)||2.78|
|Earnings date||12 Mar 2020|
|Forward dividend & yield||0.20 (52.91%)|
|Ex-dividend date||08 Apr 2020|
|1y target est||4.36|
Due to the nature of their businesses and no prospect of a turnaround any time soon, I'd avoid these two FTSE 350 stocks.The post 2 FTSE 350 stocks I’d stay away from during the 2020 market crash appeared first on The Motley Fool UK.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London. Apart from lenders, the pay-out freeze is still doing its thing with Sweden's SSAB dropping its dividend for 2019,a move that came less than a week after the steelmaker had halved its original payout proposal.
(Bloomberg) -- Leveraged European companies using emergency credit lines while the pandemic wipes out their earnings, risk breaching conditions on the debt, potentially driving them into technical default.Companies that have raised leveraged loans in Europe currently have revolving credit facilities -- a kind of corporate overdraft -- worth about 58 billion euros ($63 billion) at their disposal, data compiled by Bloomberg show.These have become a lifeline for some companies as quarantine measures force customers to stay at home or compel retailers, restaurants and cinemas to shut down in order to slow the coronavirus’s progress. But drawing on these loans just when revenues evaporate means some are likely to fail covenant tests by exceeding conditions on how much they can borrow as a ratio to core earnings.The tests commonly come into force when more than 35%-40% of the facility is drawn. A breach can ultimately lead to default across the capital structure, imposing losses on shareholders and lenders.A&O Hotels and Hostels Holding AG is among the junk-rated companies at risk and theater operator Cineworld is already negotiating with its banks, Moody’s Investors Service said in reports published this week. A spokesman for A&O declined to comment. Cineworld didn’t respond to a request for comment.Breathing SpaceBanks can choose to give the company breathing space by waiving the breach or resetting terms. Alternatively, fresh capital from lenders or shareholders can be injected ahead of time to ensure the borrower passes the test.“We are working on a number of financial covenant reset amendment processes for borrowers with maintenance financial covenants as companies see their Ebitda suddenly diminishing, with creditors asking shareholders to inject additional equity in consideration of such resetting,” said Korey Fevzi, partner at law firm Shearman & Sterling in London.Policy makers are also responding. The Bank of England on Thursday said it was giving banks extra flexibility on accounting rules and told lenders they should consider waiving covenant breaches rather than automatically treating them as defaults.Time, FlexibilityCompanies will have several months to find a solution unless they were already underperforming. Revenues have only recently taken a hit and most tests offer headroom before a borrower is deemed to be in breach. But if Europe remains locked down in the second quarter, they will face a tougher time with later assessments.“A lot of companies will be compliant with their March covenants requirements, but assuming that in April, May, and possible June the economy continues to be virtually shut down, we’ll see issues with the June covenant in most industries as a result,” said Patrick Schoennagel, a managing director in Houlihan Lokey’s capital markets group.Borrowers usually have 30-45 days from quarter-end before they have to announce whether they’ve passed or failed.Even then loose documentation may give the borrower or private equity sponsor ways to avoid or delay the test. Some companies are exploring what adjustments they can make to earnings to account for the impact of the virus.“In connection with this, there is a great deal of focus from finance directors on what adjustments can be made to Ebitda for losses relating to the coronavirus pandemic,” said Shearman & Sterling’s Fevzi. “We expect this to be a key battleground in the coming days and weeks.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investors who take an interest in Cineworld Group plc (LON:CINE) should definitely note that the Senior Independent...
Momentum is sticky and persists for longer than investors tend to anticipate. The downside of this is that stocks with recent negative momentum are likely to c8230;
You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. Of course, European bourses have lost a third of their value in less than a month but today's 2.2% rise still constitutes the best daily gains since last November and the good old days where a trade war would actually get investors worried. "Traders are hopeful for a robust response to the health emergency (from European leaders)," commented David Madden at CMC Markets.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London. Telecom Italia and Iberdrola are helping Italy and Spain's bourses.
You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. While today's STOXX 600 tentative rebound - after an horrendous Monday - was short-lived, the Italian index, Spain's blue chips and Portugal's Euronext Lisbon are still trading in the black or close, helped by telecom and utilities stocks notably. Telecom Italia and Iberdrola are helping Italy and Spain's bourses.
President Donald Trump saying the US may be heading into recession (did anyone still doubt that?) a manufacturing index slumping in March for its biggest monthly fall on record and heightened anti-virus measures sent Wall Street into a 12% tailspin, its biggest drop since the 1987 Black Monday, with $3 trillion wiped off its value. Some markets continued to tank – South Korea lost 2.4%.
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org) and Julien Ponthus (email@example.com) in London. On the bright side, Air France and Accor shares were up after France's fiscal response last night. As expected UK pub, cinema and restaurant stocks are taking a hit with Cineworld and Whitbread leading the losses.
You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. Mobile phone retailer Dixons Carphone to axe 2,900 jobs as it plans to close all UK standalone Carphone Warehouse stores. UK government's recommendation to avoid pubs, clubs, restaurants, cinemas and theatres could hit Whitbread, Marston's, Cineworld, JD Weatherspoon and Mitchells & Butlers.
AMC said all of its theatres in the United States will close for at least six to 12 weeks beginning March 17. The fast-spreading virus has also forced Regal Cinemas, operated by UK's Cineworld, to temporarily close all of its more than 500 theatres in the United States. Cineplex also announced on Monday that it would shut its theatres across Canada from March 16 to April 2 and warned that the possibility of prolonged closures could hurt its ability to satisfy debt conditions required for a merger deal with Cineworld.
(Bloomberg) -- Cineworld Group Plc shares fell 42% on concerns about the coronavirus and as its plan to buy Toronto-based cinema chain Cineplex Inc. came under fire from an activist investor.Bluebell Capital Partners Ltd, a fund based in London that holds an undisclosed stake in Cineplex, urged the Canadian government to block the deal, according to a letter sent to Canadian officials and seen by Bloomberg News. Bluebell said the transaction would pose a “significant risk” to the future of the company.Shares in Cineworld, the world’s second-largest cinema company, are down 88% this year as it warned that in a worst-case scenario a prolonged closure of cinemas due to the coronavirus could put it at risk of breaching lending covenants. Cineworld agreed to buy Cineplex for C$2.15 billion ($1.55 billion) in December, and said last week it still intends to complete the transaction.Cineworld Should Scrap Deal to Acquire Cineplex, Peel Hunt SaysIn the letter, Bluebell said the combined group’s financial position could “quickly become extremely fragile” and it may have to close theaters, jeopardizing Cineplex’s future. Bluebell co-founder Giuseppe Bivona confirmed the contents of the letter, which was addressed to the Department of Canadian Heritage.Cineplex’s stock had been trading close to the Cineworld offer price of C$34 per share through early 2020, but has since plunged 40% following the virus outbreak.Separately, Fitch Ratings placed Cineworld’s B+ rating on review for downgrade on Monday, citing uncertainties about its business because of the virus impact.An external representative for London-based Cineworld did not immediately comment.Cineplex and the Department for Canadian Heritage did not immediately respond to e-mails seeking comment outside of normal business hours.To contact the reporters on this story: Joe Mayes in London at email@example.com;Nishant Kumar in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Jennifer Ryan at email@example.com, Patrick HenryFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
It may take months for markets to recover from coronavirus-induced shock. Here are two bargain FTSE shares with record profits I'll buy when that starts to happen.The post 2 'bargain' FTSE shares with record profits I'll buy when the market recovers appeared first on The Motley Fool UK.
As you might know, Cineworld Group plc (LON:CINE) last week released its latest annual, and things did not turn out so...
Cineworld shares are so cheap they are either a bargain or the company is about to go bust. I think they are a bargain.The post Looking beyond the headlines, I think Cineworld shares are at a bargain price appeared first on The Motley Fool UK.
Thursday is arguably the day the impact became tangible, as a slew of UK companies warned coronavirus was hurting their business.
* Europe falls on Trump's travel ban * Travel and leisure down 9% * ECB stimulus plan disappoint * Dow down over 8%, S&P 500 over 7% Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com) and Julien Ponthus (firstname.lastname@example.org) in London. "PUT THAT INTO YOUR EQUITY RISK PREMIA MODELS AND SMOKE IT!" (1513 GMT) At current levels, there could a reasonable case be made to find sovereign bond yields quite low and the valuation of stocks on the cheap side.
As the FTSE 100 crashes below 5,500 points, it's tempting to buy the day's biggest fallers. Here's why that could be a mistake.The post These 2 stocks have crashed 30%+ as the FTSE 100 slides. Time to buy? appeared first on The Motley Fool UK.
(Bloomberg) -- Cineworld Group Plc, the world’s second-biggest cinema company, lost almost half its market value at one point on Thursday after it said its worst-case scenario for the coronavirus outbreak could put it at risk of breaching lending covenants.The shares have pared losses, bringing their year-to-date decline to 68% and making the company among the worst performers in the Euro Stoxx 600 so far in 2020. Cineworld has not seen a material impact from the pandemic, it said in a statement.In a scenario where the virus impact causes a loss of as much as three months’ revenue, an inability to reduce its fixed costs to cope with site closures, and other assumptions, Cineworld would be at risk of breaching debt covenants. The company has a credit line whose terms can be triggered when it is more than 35% drawn, and loans with terms that limit the ratio of net debt to earnings to 5.5 times.“I am of course conscious of the possibility that events could develop adversely very quickly and change this position in the short term, but I remain confident that the crisis will ultimately pass,” Chairman Anthony Bloom said in the statement.Cineworld says it hasn’t reached the 35% threshold in its credit line covenants, and doesn’t expect to. The company’s ratio of net debt to adjusted earnings before interest, tax, depreciation and amortization was 3.4 times at the end of 2019, Citigroup Inc. analyst Natasha Brilliant said in a research note.Liquidity FocusHowever, investors had already been betting against the chain: it was popular with short-sellers even before the scale of the coronavirus outbreak began to roil markets, due to a weaker film slate than recent years and the surge of streaming services like Netflix Inc.Cineworld has planned measures to mitigate any hit if customers are forced to stay home, including delaying capital spending and cutting costs to maintain cash.“We believe the chief concern for investors has turned to liquidity,” Brilliant wrote. “The business outlook remains uncertain due to the Coronavirus outbreak.”The most recent bad omen was the delay of the new James Bond blockbuster ‘No Time to Die’ to November from April. Analyst Ivor Jones at Peel Hunt said the top 10 movies account for about 40% of box-office revenue in a typical year, and the Bond delay was unlikely to be the last. Shares in Cineworld’s rivals like Cinemark Holdings Inc., IMAX Corp. and AMC Entertainment Holdings Inc. have also fallen.Analysts at Peel Hunt said Cineworld should abandon its deal to acquire Canadian chain Cineplex, given the market turbulence. The company said in Thursday’s statement it expects to complete the acquisition.(Updates shares, adds detail on debt ratio, analyst comment from third paragraph.)\--With assistance from Lisa Pham.To contact the reporter on this story: Thomas Seal in London at email@example.comTo contact the editors responsible for this story: Jennifer Ryan at firstname.lastname@example.org, Katie LinsellFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Cineplex deal announced three months ago will make Cineworld the biggest cinema operator in North America. Cineworld said that in a worst-case scenario it might have to close all cinemas for up to three months. Cineworld's debt stands at $3.5 billion, excluding leases, with additional financing of about $2.2 billion for Cineplex as it begins to pay for the deal announced only a couple of years after its $3.6 billion acquisition of Regal Cinemas.
European shares plummeted to their lowest in almost four years on Thursday as investors were rattled by dramatic travel restrictions imposed by U.S. President Donald Trump in an attempt to halt the fast-spreading coronavirus. Trump on Wednesday suspended travel from Europe to the United States for 30 days, responding to mounting pressure to take action against the outbreak, which the World Health Organisation now classifies as a pandemic. The benchmark STOXX 600 index fell 4.9%, with the sub-index of travel and leisure stocks shedding 8.6% to hit its lowest in more than six years.