What is causing the fall? 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 see the price reduced materially. In 2001-02, Onex, with Oaktree Capital Management, bought the defaulted debt in Loews Cineplex at a huge discount and converted it into equity and new notes in the restructured company. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock. Cineplex and other theatre outlets rake in money when a highly anticipated movie is released. Just Released! An investor who sells a stock short makes money when the price of a share falls. But in time, I firmly believe that what seems like an expensive equity will look cheap. Returns since inception, October 2013. What you may not know is that two months ago, for $10-million, Cineplex bought 80 per cent of World Gaming, a fantasy sports company. Engage in respectful discussions on the U.S. election on our dedicated Facebook page, Use of this Website assumes acceptance of Terms & Conditions and Privacy Policy, Published Thursday, March 5, 2020 11:39AM EST, Active cases: 10,858 | Recovered: 127,422 | Deceased: 9,242 | Total: 147,522, One-night only: Pearl Jam's 'Gigaton' to hit Canadian cinemas on March 25, Independent theatres accuse Cineplex of anti-competitive behaviour, Cineworld's Cineplex takeover deal secures Ontario court approval, Bottled water billionaire unseats Jack Ma as China's richest man, Stocks dip as virus cases rise, stimulus outlook unclear, BlackBerry reports second-quarter loss, revenue up from year ago, Cambridge Analytica ex-boss banned from running companies, Judge: Eric Trump must testify in N.Y. probe before election. 5 Stocks Under $49 (FREE REPORT). Do Wall Street analysts recommend investors buy shares of Cineplex? What does it mean to be a value investor? If you are looking to give feedback on our new site, please send it along to, To view this site properly, enable cookies in your browser. Using traditional metrics, for example, Cineplex Inc. is expensive. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Open this photo in gallery: Shares of Cineplex are expensive, but smart management can be worth it. COVID-19 dealt Canada’s leading entertainment and media a massive blow with its 95% drop in revenue.The post Cineplex (TSX:CGX) Has a Massive 95% Drop in Revenue appeared first on The Motley Fool Canada. Canada's Most Trusted News. Will the high debt result in lower dividend payouts for investors going forward? CGX | Complete Cineplex Inc. stock news by MarketWatch. 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. As of April 11 of last year, the stock was valued at $50.83, and now it’s worth $30.97 per share. Cineplex is an overvalued stock with falling profit margins and high debt. John O'Connell's Top Picks: Sep. 23, 2020, Stephen Takacsy's Top Picks: Sep. 22, 2020, Cineworld's Cineplex takeover deal secures Ontario court approval, Box office bomb: COVID-19's impact on the movie theatre business, Cineplex shares tumble on short call amid Cineworld takeover. And there's more – the 70 million annual moviegoers that Cineplex is actively working to monetize. “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. Why pricey Cineplex stock is still a worthy buy. There are 100 million registered Minecraft users; for movie theatres, this has huge potential for growth. In a series of tweets, Hindenburg Research says the stock market is significantly underestimating the chances that Cineworld will seek to break or modify the deal. As the audience grows, so will the payouts, revenue and profitability. Find the latest CINEPLEX INC. (CGX.TO) stock quote, history, news and other vital information to help you with your stock trading and investing. I will answer in one word: management. The deal is still subject to other conditions including Investment Canada Act approval.