Daniel Da Costa | September 10, 2020 | More on: CGX. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Simply click on the link below to get more information. Get the latest stock price for Cineplex Inc. (CGX), plus the latest news, recent trades, charting, insider activity, and analyst ratings. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Simply click the link below to grab your free copy and discover all 5 of these stocks now. View the basic CGX.TO option chain and compare options of CINEPLEX INC. on Yahoo Finance. “As our peers and others have had successful financing events, we are confident that we will be able to deliver on this requirement prior to August 31, and as such the going concern would no longer be required assuming no other changes to the future outlook.” – Gord Nelson, CFO. Find the latest CINEPLEX INC. (CGX.TO) stock quote, history, news and other vital information to help you with your stock trading and investing. Cineplex is a stock that, on top of having an eventful year in 2020, has actually had a very busy last couple of years. The answer is a radical breakthrough that Wired says is “the rocket fuel of the AI boom.”. Current as of October 5, 2020. Live on Passive Income: 3 Top TSX Dividend Stocks to Buy in October 2020, Wherever the Market Goes, I’m Buying These Top TSX Stocks, Why Canopy Growth (TSX:WEED) Stock Fell Over 11% Last Month, Why Hexo (TSX:HEXO) Stock Fell 8.4% Last Month, 1 Safe High-Yield Dividend Stock to Buy for October. The company didn’t stop there, however. Any hopes shareholders had of being acquired are now in the rear view mirror. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Ouch. While I’m confident the company will secure the financing required, there is a real risk of insolvency here. To be honest, this is not all that surprising. “We believe that Cineworld had no legal basis to terminate the agreement. This TSX Stock Could Hold The Key to What 1 CEO Says Is Worth 35 Amazons, WHAT in the world could be worth “35 Amazons”? Cineplex is a stock that, on top of having an eventful year in 2020, has actually had a very busy last couple of years. Mat Litalien, MBA | July 4, 2020 | More on: CGX. I understand I can unsubscribe from these updates at any time. Cineplex Inc is a diversified media company that operates chains of movie theaters. It also exposed itself to the growing e-sports industry — a move I think was prudent and still has a tonne of potential for years. The share price had surged from $24 in December after U.K.-based Cineworld announced plans to acquire Cineplex for more than $2 billion. The Motley Fool Canada » Investing » Cineplex (TSX:CGX) Stock: Is Bankruptcy Next? One thing is clear – the deal is dead. On the bright side, management remains confident given the success others in the industry have had in securing financing. While movie theatre growth has slowed, Cineplex had been doing a great job of finding new ways to increase how much each customer was spending on their trips to maximize its revenue growth. Given this, an investment in Cineplex is only for those with a high tolerance for risk. This was a company that was already highly leveraged, and was about to take on additional debt to acquire Cineplex. On Tuesday, Cineplex (TSX:CGX) released fiscal 2020 first quarter and year-end results. 5 Stocks Under $49 (FREE REPORT). On the day, the stock price lost 18.95% of its value to touch a 52-week low of $8.04 per share. Don't miss out! However, their ability to execute on these events are unknown. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. In fact, the company looked so attractive that Cineworld offered a 42% premium to the stock price back in December. The company successfully entered into a credit facility amendment – a positive step. In mid-June, Cineworld officially withdrew from the acquisition citing breaches of the condition of the agreement. Not to alarm you, but you’re about to miss an important event. Even in the event of an economic recovery, Cineplex may never be the same. Given this, the company included the language around “going concern” along with first quarter results. All rights reserved. All rights reserved. This was going well and helping the company to diversify away from theatres. Unfortunately, it was an unmitigated disaster. “We believe that Cineworld had no legal basis to terminate the agreement. The stock has had an extremely adventurous and unfortunate year, with a price these days that’s roughly 75% below where it started the year. The deal with Cineworld fell through, and the company is back on its own. Please read the Privacy Statement and Terms of Service for more information. View real-time stock prices and stock quotes for a full financial overview. This is your chance to get in early on what could prove to be very special investment advice. It is now about finding a way to survive until the economy can reopen. Returns since inception, October 2013. The company will now seek out additional financing options and asset sales. © 2020 The Motley Fool Canada, ULC. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. “Cineplex will explore financing options and potential asset sales, but as of the date of our filing yesterday there is no [indiscernible] event. For months, the biggest unknown was the takeover by leading U.K. theatre chain Cineworld. The company had agreed to purchase Cineplex for $34.00 per share. “Going concern” is an accounting term for a company with the resources to continue operating indefinitely. On Tuesday, Cineplex released fiscal 2020 first quarter and year-end results. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. Canada's most popular destination for movies, showtimes, tickets, and trailers. Unfortunately, it will be a long road to recovery. CGX | Complete Cineplex Inc. stock news by MarketWatch. The next earnings results will be crucial for investors to get an idea of how the company is managing to perform under the strict COVID-19 regulations. Let’s take a deeper dive into the quarterly conference call to find out. Then the pandemic hit, and the company’s share price cratered. So far, the impact on its business has been enormous, but now that the company has reopened all of its locations, it’s looking in much better shape going forward. The result is an extremely undervalued share price that has savvy investors strongly considering investing at these dirt-cheap prices. In the short-to-medium term, it will be a fight for survival. This is your chance to get in early on what could prove to be very special investment advice. Will it succeed? Current as of October 5, 2020. This is a tough question to answer. Returns since inception, October 2013. I understand I can unsubscribe from these updates at any time. © 2020 The Motley Fool Canada, ULC. Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. Fool contributor Mat Litalien owns shares of CINEPLEX INC. Not to alarm you, but you’re about to miss an important event. We believe that Cineworld is in fact in breach of the arrangement and attempting to waive their obligations under the arrangement agreement in light of the COVID-19 pandemic.”, “As our peers and others have had successful financing events, we are confident that we will be able to deliver on this requirement prior to August 31, and as such the going concern would no longer be required assuming no other changes to the future outlook.”, While I’m confident the company will secure the financing required, there is a, Live on Passive Income: 3 Top TSX Dividend Stocks to Buy in October 2020, Wherever the Market Goes, I’m Buying These Top TSX Stocks, Why Canopy Growth (TSX:WEED) Stock Fell Over 11% Last Month, Why Hexo (TSX:HEXO) Stock Fell 8.4% Last Month, 1 Safe High-Yield Dividend Stock to Buy for October. Unfortunately, it was an unmitigated disaster . We believe that Cineworld is in fact in breach of the arrangement and attempting to waive their obligations under the arrangement agreement in light of the COVID-19 pandemic.” – Ellis Jacob, President & CEO. I expect a significant price movement at the next earnings release, and if the company manages to report a surprise beat, it’s very possible it could double by year-end. The company has three business segments, Film Entertainment and Content, Media and Amusement and Leisure. Filter options by calls, puts, strike prices, near money %, and greeks for Cineplex Inc. (CGX). Today, Cineplex is in a much different scenario. Cineplex stock started 2020 close to $34 per share. This is where the company was entering 2020 and when the coronavirus pandemic hit. Plus, it owns other businesses, such as its advertising media business, which really made the company an intriguing investment, and that’s the main reason why I recommended it to investors. On its call, Cineplex further disputed this claim. Please read the Privacy Statement and Terms of Service for more information. To get an idea of whether Cineplex can double by the end of the year, we should first understand what it was worth before and why it was worth so much.