Q: Hi 5i
Today while market was busy crashing, CGX was heading higher in heavy trading. Do you have any idea what is going on? major news ?
I have been trying to start position at 7.75 and wondering if that price has slipped away...or just wait....my hold time frame is 1-2 years... in your opinion Increased risk given current market conditions?
thx
jim
Today while market was busy crashing, CGX was heading higher in heavy trading. Do you have any idea what is going on? major news ?
I have been trying to start position at 7.75 and wondering if that price has slipped away...or just wait....my hold time frame is 1-2 years... in your opinion Increased risk given current market conditions?
thx
jim
5i Research Answer:
There was no specific company news, but theatre stocks in general rose as news came from Hollywood that labour negotiations with writers are moving closer to a deal. Market conditions are always a risk, but CGX carries the added risk of an extremely large debt level. It is back making money again, and is cheap on an earnings valuation. We would still consider it a very risky stock overall and think buyers have time on their side here.