Cineworld (LON: CINE) share price has turned green for the third consecutive day. The shares of the bankrupt Cineworld Cinema chain have been very volatile since the company’s filing for bankruptcy last year.
On Monday, Cineworld shares opened at 2.50p after closing the previous day at 2.35p. The shares surged to 2.70p before having a pullback. Till press time, shares of the parent company of Regal Cinema are trading at 2.50p after gaining 6.38% during today’s trading session.
Cineworld Cinema Receives Bid From Elliot Management
According to the latest Cineworld news, the cash-striped company has received a bid from Elliot Management. However, just like most previous bids, the UK and US operations are not part of the deal. The bid only includes Eastern European and Israeli operations.
The Cineworld share price has reacted positively to the news, as the price retested its last week’s highs. However, the ongoing bounce might turn out to be another dead-cat bounce as the company is yet to receive an all-cash bid for its UK & US operations, which are its major markets.
Cineworld Share Price Can Drop Before A Reversal
Despite the ongoing bounce from the monthly lows, I’m still not bullish on the Cineworld stock. The reason is that the LON: CINE chart is still bearish, and a retest of the range lows that lie at 1.84p seems imminent. This level also marks the August 2022 lows.
Therefore, it is better to wait till the time Cineworld secures a better deal for its UK & US operations. The news of the disruption in the Vue deal last week was a major blow to the company’s efforts to come out of bankruptcy.
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