Will the Cineworld share price ever return to pre-pandemic levels?

first_imgWill the Cineworld share price ever return to pre-pandemic levels? 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. The high-calibre small-cap stock flying under the City’s radar Can the Cineworld (LSE: CINE) share price ever get back to its pre-Covid levels? That’s a question some investors might be asking if they try to value the shares after their recent performance. Unfortunately, there’s no clear answer to this question. The company has been through a tremendous upheaval over the past 12 months. In some respects, it’s now a shadow of its former self, having had to raise hundreds of millions of pounds from investors to keep the lights on and abandon its global expansion plans.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, right now, there’s a lot of uncertainty surrounding the outlook for the business. As a result, the Cineworld share price is trading at an incredibly low level. As such, I think even a slight improvement in the group’s fortunes could lead to a substantial increase in the value of its shares. Although, of course, there’s no guarantee the company’s fortunes will improve. Cineworld share price bonusThat doesn’t seem to have put off the company’s CEO and one of its largest shareholders Mooky Greidinger. He recently pushed through a pay deal which could see the CEO and his family receive as much as £65m in bonuses each if the Cineworld share price hits 380p in three years. They’ll receive £33m each if the share price hits 190p in three years. In total, the bonuses are worth £208m. These are ambitious figures. At the time of writing, shares in the cinema company are changing hands at 76p. If they hit the 380p target, shareholders could be in line for a return of 400%. Management is clearly incentivised to produce strong returns for shareholders over the next few years. If the Cineworld share price hits 380p, that will take it back above its pre-pandemic high.Still, this doesn’t guarantee a strong performance. The company has more than $8bn of debt and has already been bailed out once by its investors in the past 12 months. With the majority of its theatres currently closed and no opening date on the horizon, I think it’s going to be sometime before the business can start chipping away at this debt mountain.That said, some economists have predicted that when the economy begins to open up again, consumers will want to spend. This suggests Cineworld may see a sudden jump in sales. But, as is the case with any prediction, there’s no guarantee these projections will turn out to be correct. Uphill struggleSo, while management may want to drive the Cineworld share price higher, they face a huge uphill struggle, in my opinion. Just because these bonus targets have been set doesn’t mean they’re achievable. Personally, I tend to avoid businesses with too much debt, and I think Cineworld falls into this bracket. As such, I won’t be buying the stock for my portfolio anytime soon. I think there’s too much risk here, despite the potential returns on offer if the company does manage to pull through the storm.  Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Rupert Hargreaves | Saturday, 13th February, 2021 | More on: CINE Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!center_img Enter Your Email Address Image source: Getty Images Simply click below to discover how you can take advantage of this. See all posts by Rupert Hargreaves I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shareslast_img

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