TORONTO -- Shares of Cineplex Inc. fell more than 10 per cent after a short-seller suggested the company's $2.8-billion deal to be acquired by Cineworld PLC could fall apart or … Caught on cam: Two workers rescued from scaffolding in N.Y. 10-year-old raises money to replace family car after crash, Woman battling cancer to soon be reunited with U.K. fiance, 'Trump continues to improve': Dr. Sean Conley. She didn’t clarify what Cineplex’s plans are to diversify, but it’s clear the company needs to examine its approach in the face of a tumultuous, changing industry. Also, there has been talk that movie studios have been exploring the option of offering in-home movies to consumers as early as a couple weeks after theatrical releases, which I think would cripple movie theatre operators. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. By contrast, Nolan’s previous film – the 2017 World War II epic ‘Dunkirk’ – opened to a weekend gross of US$50 million in July 2017. This is a space where subscribers can engage with each other and Globe staff. collapse of its planned $2.15-billion takeover, 'We are the engine': Cineplex CEO shrugs off Disney+ threat, Cineplex reports 95% revenue drop after COVID-19 closes theatres. Should You Buy Shares of Aphria Ahead of Earnings? Cineplex shares sank $2.33 to $11.49 on the Toronto Stock Exchange after Cineworld rescinded its cash offer of $34 a share late Friday. Cineplex is being removed from Canada’s benchmark stock index on September 21, according to a news release from S&P Dow Jones Indices. Joseph Solitro ... and its stock has responded by falling over 10% in early trading. Even Christopher Nolan’s ‘Tenet’ – which had been scheduled for a July 17 release by Warner Bros. Pictures – has been hampered by attendance restrictions. Cineplex shares closed at an even $31 on Mar. It traded above $50 at the peak in 2017. “A number of roles were eliminated in addition to an overall cost reduction plan representing approximately $25 million annually,” clarified Van Lange to Global News. © 2018 Global News, a division of Corus Entertainment Inc. People leave a Cineplex theatre in Toronto on November 4, 2016. THE CANADIAN PRESS/Aaron Vincent Elkaim. Cineplex gave no indication that a deal could still go ahead, even at renegotiated terms. The move comes a month after the movie theatre chain began a phased re-opening of its cinemas after they were shuttered by the COVID-19 pandemic. 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. The release of the James Bond movie "No Time To Die" was pushed back by several months this week due to concerns about COVID-19. Thank you for your patience. The film opened to US$20.2 million North American box office over Labour Day weekend, dropping by nearly two-thirds to US$6.7 million last weekend. Audio for this article is not available at this time. The stock symbol {{StockChart.Ric}} does not exist. It said on Monday it plans to bolster its balance sheet while preparing for the gradual reopening of its movie screens across the country. She says she left her position within Royal Bank of Canada’s brand marketing team in April after a series of dealings with a senior manager and frustrating failed attempts to remedy the situation with the company’s human resources department. Cineplex shares closed at $31 on March 10, the day before the COVID-19 outbreak was officially declared a pandemic by the World Health Organization. The Motley Fool owns shares of Amazon and Netflix. Sign up today. The company said it is confident it will be able to deal with any liquidity issues arising from pandemic-related restrictions. Why Cineplex Inc. Is Plummeting Today. “We basically create the awareness with the guest and we also create [demand for] sequels for the studios to create, and then they can design games and theme parks behind it. According to Bloomberg, in 2017 movie theatre attendance in the U.S. and Canada fell to its lowest point since at least 1992. Long-term investors who relied on the company for its steady dividends are unlikely to see a return to the glory days. Don't miss out! The Motley Fool Canada » Dividend Stocks » Why Cineplex Inc. Is Plummeting Today, Joseph Solitro | August 2, 2017 | More on: CGX. © Copyright 2020 The Globe and Mail Inc. All rights reserved. Returns since inception, October 2013. Cineplex shares were … This is a space where subscribers can engage with each other and Globe staff. CGX's most recent monthly dividend payment was made to shareholders of record on Friday, February 28. Should You Buy Enbridge (TSX:ENB) and TC Energy (TSX:TRP) Stock at Current Levels? Cineplex pays an annual dividend of C$1.05 per share, with a dividend yield of 15.70%. It alleges Cineplex breached conditions in the merger agreement, without spelling out which ones. Cineplex Inc. is planning to reopen its movie theatres and shore up its finances as it plots a course as a stand-alone business following the termination of its takeover by Cineworld Group PLC. The case will be a test over what constitutes a legitimate reason to terminate an agreed-upon takeover arrangement as business conditions change suddenly and dramatically. Cineplex shares were trading at the start of this week at $8.20, a drop of nearly 75%. “It is very unclear how eager consumers are to return to a crowded theatre until there is much more clarity regarding the state of the pandemic. However, the chain has suffered from distributors seeking other avenues for exhibition and restricted audience sizes demanded by the era of social distancing. Cineplex shareholders voted last month to approve Cineworld's offer of $34 per share in cash. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Click here to subscribe. Cineworld Group Plc shares fell 42 per cent on concerns about the coronavirus and as its plan to buy Toronto-based cinema chain Cineplex Inc. came under fire from an activist investor. Cineplex’s stock surged more than 40 per cent from Friday’s closing price on news of the deal and closed at $33.96 on Monday. David Gardner owns shares of Amazon and Netflix. Micro Cap Pharma Company Extends Agreement Potentially Worth Millions, American Express to Open New JFK Range, Shares Take Flight. (An anonymous reader wrote to Global News warning of more layoffs to come, but this hasn’t been verified. The decline would be the worst earnings-day reaction … Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. A Cineplex theatre in Toronto is seen on Monday, December 16, 2019. Pattie Lovett-Reid: When should you break your mortgage for a better rate. The company said its second-quarter revenue fell by 95% to a total of $22 million. Update: You may have noticed Cineplex stock has performed quite miserably since this post. Cineplex’s stock tumbled nearly 40 per cent in the past 12 months. Welcome to The Globe and Mail’s comment community. Fool contributor Joseph Solitro has no position in any stocks mentioned. Let’s take a closer look at the earnings release and the condition of the industry to determine if we should use this sharp decline as a buying opportunity or a major warning sign. READ MORE: Mariah Carey reveals her battle with bipolar disorder. U.S. stocks climbed to an almost three-week high on optimism over economic stimulus and that President Donald Trump may soon leave the hospital. The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Hindenburg, which said it is short Cineplex shares, raised concerns about the debt involved in the deal and said the new coronavirus has put pressure on theatre operators. Non-Nasdaq Stocks: Information delayed 20 minutes. © 2020 The Motley Fool Canada, ULC. “These changes were necessary, as they eliminated duplicate roles following several business acquisitions, as well as streamlined our business as we continue to execute on our diversification strategy.”. Treasury yields jumped and the dollar weakened. Cineplex (TSX:CGX) stock is downs 80% in the past four years. The number of advertisers also have been relatively stagnant after a sharp drop in Q4 2017. This is a great example of someone (me) presenting lots of facts yet getting it entirely wrong.

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