The Motley Fool

Where will the Cineworld share price go in November?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

British Pennies on a Pound Note
Image source: Getty Images

At the end of September, the Cineworld (LSE: CINE) share price jumped when the latest James Bond instalment broke box office records. 

As I have noted before, this appears to have marked a change in consumers’ attitudes. Analysts have speculated that consumers would not want to return to cinemas after the pandemic and would instead favour streaming services.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

The success of James Bond shows that there is still a market for these blockbuster releases. 

Unfortunately, since this bounce, the Cineworld share price has been under pressure. After jumping to a high of around 82p, the stock has since fallen back to about 61p. It seems as if investors have cooled on the stock as calls for yet more coronavirus restrictions have started to grow.

What’s more, even after the success of James Bond in theatres, in the middle of October, Disney delayed the release of Marvel Studios’ sequels to Black Panther, Thor and Doctor Strange by several months and pushed the next big-screen outing for adventurer Indiana Jones to 2023. 

Cineworld share price headwinds

This is a disappointing development for Cineworld. These blockbuster releases could have generated substantial buzz for the group. Now it looks as if the company will have to wait a few years to benefit from the pull of new Disney films. 

Further coronavirus restrictions may lead to more cancellations, and this would only pile the pressure on Cineworld. The company is already fighting to stay above water. While James Bond brought it some breathing space, it needs consumers to return to its theatres in large numbers.

Considering all of the above, I think there is a strong chance the Cineworld share price will continue to decline in November. 

However, I also think that investor sentiment towards the business is currently so depressed, even the slimmest bit of good news will help improve the company’s outlook. For example, if there are no further coronavirus restrictions, I think that could have a significant impact on the company’s outlook. 

If the company can make it through this winter, it could return to growth in 2020. Analysts have pencilled in potential sales of just under $4bn across the business next year. They are also projecting a  profit of $4m.

The outlook 

If Cineworld stops losing money, I think the company’s outlook will improve significantly. It may also be able to achieve improved terms with its creditors, lowering debt costs and potential financial penalties. 

As uncertainty prevails, I think the Cineworld share price will continue to slide in November. Although as it is impossible to predict the future, this is not guaranteed.

Still, I would buy the stock for its growth potential in 2022 and beyond. As the global economy reopens, I think the group can capitalise on consumers’ pandemic savings. Initiatives, such as a US listing and refreshing the decor of its theatres, may also entice consumers back.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Walt Disney. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.