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Cineworld shares collapse: who is next?

Oct 5, 2020
4 min read
Table of Contents
  • 1. Short-list
  • 2.
  • 3. The Z-list

Cineworld shares collapsed on Monday after the company closed its UK and US theatres after the latest James Bond picture was delayed. Shares dived around 44% to trade at 22p.

Lumbered with over $8bn in debt and with a $1.6bn loss in the first half, things were looking dicey for Cineworld well before today’s update. Short interest in the stock was exceptionally high as hedge funds circled a vulnerable member of the herd.

Short-list

Looking at Shorttracker.co.uk we can see the following stocks are the top targets by short sellers.

Company % short Funds short
CINEWORLD GROUP 8.50% 8
PREMIER OIL PLC 8.10% 2
TULLOW OIL PLC 7.90% 5
METRO BANK PLC 7.80% 5
PEARSON PLC 7.80% 7
PETROFAC LTD 7.80% 5
CARILLION PLC 7.20% 6
HAMMERSON PLC 7.20% 6
SAINSBURY (J) PLC 6.50% 4
TUI AG 6.10% 8
INTL CONSOLIDATED AIRLINE-DI 5.90% 7
BABCOCK INTL GROUP PLC 5.80% 4
PETROPAVLOVSK PLC 5.60% 2
WEIR GROUP PLC/THE 5.40% 5
BLUE PRISM GROUP PLC 4.70% 5
IQE PLC 4.70% 3
VODAFONE GROUP PLC 4.40% 4
FUTURE PLC 4.20% 4
DOMINO’S PIZZA GROUP PLC 4.00% 6
WOOD GROUP (JOHN) PLC 4.00% 6
CAPITA PLC 3.80% 5
MICRO FOCUS INTERNATIONAL 3.80% 3
N. Brown Group 3.80% 3
WM MORRISON SUPERMARKETS 3.70% 3
ASHMORE GROUP PLC 3.50% 4

The Z-list

It’s not always the best indicator but the Altman Z-Score is always worth looking at. Here’s the lowest scoring stocks on the FTSE 350. (source: Reuters)

Name RIC Altman Z-Score
FTSE 350 Index .FTLC —
Vodafone Group PLC VOD.L -0.43
London Stock Exchange Group PLC LSE.L 0.03
IntegraFin Holdings plc IHPI.L 0.08
TP ICAP PLC TCAPI.L 0.16
Ninety One PLC N91.L 0.23
Rolls-Royce Holdings PLC RR.L 0.62
Premier Foods PLC PFD.L 0.62
Aston Martin Lagonda Global Holdings PLC AML.L 0.65
ContourGlobal PLC GLO.L 0.70
Intermediate Capital Group PLC ICP.L 0.73
Airtel Africa PLC AAF.L 0.77
Severn Trent PLC SVT.L 0.77
Capita PLC CPI.L 0.84
United Utilities Group PLC UU.L 0.85
IWG Plc IWG.L 0.85
SSE PLC SSE.L 1.05
Energean PLC ENOG.L 1.06
Cineworld Group PLC CINE.L 1.08
Pennon Group PLC PNN.L 1.09
National Grid PLC NG.L 1.11
Petropavlovsk PLC POG.L 1.11
FirstGroup PLC FGP.L 1.13
Diversified Gas & Oil PLC DGOC.L 1.15
Mitchells & Butlers PLC MAB.L 1.18
Talktalk Telecom Group PLC TALK.L 1.18
TUI AG TUIT.L 1.19
British Land Company PLC BLND.L 1.21
BT Group PLC BT.L 1.23
National Express Group PLC NEX.L 1.24
Signature Aviation PLC SIGSI.L 1.25

 

Traders can make up their own minds about which companies may require additional capital raising using the Reuters equity analysis tool in the platform.


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

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Table of Contents
  • 1. Short-list
  • 2.
  • 3. The Z-list

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