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March 25, 2021, 8:29 a.m. EDT

Cineworld shares fall after turning to bond market for more funds, while Vodafone climbs on positive broker note

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By Steve Goldstein

Cineworld shares fell as much as 14% as the movie-theater operator set out plans to raise more money with its cinemas still shut.

Cineworld /zigman2/quotes/206525056/delayed UK:CINE +0.39% , which operates Regal theaters in the U.S., said it is planning to issue a $213 million convertible bond at a 7.5% interest rate. The cinema operator recorded a $1.3 billion pretax loss in 2020 and said its base case is that its cinemas will reopen in May. It is expecting a $200 million refund from the U.S. government, and it is seeking shareholder approval to suspend the borrowing limit in its articles of association.

“These are (hopefully) short-term concerns which have been exacerbated by the debt built up during Cineworld’s ambitious and ultimately ill-timed acquisition-led growth in recent years,” said Russ Mould, investment director at AJ Bell.

Cineworld shares were still up 46% in 2021, as it is an ideal vehicle to play reopening hopes.

Vodafone /zigman2/quotes/202484985/delayed UK:VOD -2.71% /zigman2/quotes/202862751/composite VOD -2.18% shares rose as high as 136.62 pence as Morgan Stanley analysts led by Emmet Kelly put a 200 pence price target on the company and resumed coverage with an overweight rating. The broker argued that trends in the troublesome Italian market will improve, that the recovery in Germany is already gathering pace, and that operators including Vodafone are hiking prices in the U.K.

Vodafone also offers the deepest value in the telecom sector, and there is scope for consolidation in the Spanish market, the broker said.

The broader FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.05% traded 1.4% lower, weakening as the U.S. open /zigman2/quotes/210599714/realtime SPX +0.98% approached. Oil producers Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA -2.97% and BP /zigman2/quotes/202286639/delayed UK:BP -1.55% were the biggest drag on the FTSE 100.

/zigman2/quotes/206525056/delayed
UK : U.K.: London
62.56 p
+0.24 +0.39%
Volume: 3.59M
Oct. 28, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£855.65 million
Rev. per Employee
N/A
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/zigman2/quotes/202484985/delayed
UK : U.K.: London
108.98 p
-3.04 -2.71%
Volume: 76.85M
Oct. 28, 2021 4:35p
P/E Ratio
573.58
Dividend Yield
7.17%
Market Cap
£30.72 billion
Rev. per Employee
£372,306
loading...
/zigman2/quotes/202862751/composite
US : U.S.: Nasdaq
$ 15.23
-0.34 -2.18%
Volume: 4.90M
Oct. 28, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
6.91%
Market Cap
$42.12 billion
Rev. per Employee
$486,182
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,249.47
-3.80 -0.05%
Volume: 648,119
Oct. 28, 2021 4:52p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,596.42
+44.74 +0.98%
Volume: 2.18B
Oct. 28, 2021 5:07p
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,713.20
-52.40 -2.97%
Volume: 11.83M
Oct. 28, 2021 4:35p
P/E Ratio
34.62
Dividend Yield
0.04%
Market Cap
£136.31 billion
Rev. per Employee
£1.52M
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
352.05 p
-5.55 -1.55%
Volume: 28.48M
Oct. 28, 2021 4:35p
P/E Ratio
11.40
Dividend Yield
4.51%
Market Cap
£71.00 billion
Rev. per Employee
£2.21M
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