July 5

I’d ignore heavily-shorted Cineworld’s share price and buy these penny stocks instead

first_imgSimply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Before buying any UK share I always check to see which London Stock Exchange shares are most shorted. The list provided by shorttracker.co.uk shows which British stocks institutional investors and hedge funds are betting heavily against. And, right now, the Cineworld Group (LSE: CINE) share price is firmly in their crosshairs.As I type, a whopping 7.2% of Cineworld’s shares are being shorted. The level of shorting here is beaten only by J Sainsbury. Short interest on the FTSE 100 supermarket stands at 7.6%.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Of course these institutional investors and hedge funds don’t always make the right call. But it’s still worth considering what these highly-experienced, financially-savvy organisations have to think about a particular UK share. And in the case of the Cineworld share price I’m afraid I share their pessimism.Even when Cineworld’s cinemas are fully reopened in the US and UK, there’re likely to be revenues-sapping capacity restrictions in place due to the ongoing Covid-19 crisis. This is a particular worry given the colossal amount of debt that Cineworld has on its books.There’s also the long-term danger posed by streaming giants like Netflix and Amazon, companies that threaten to keep movie fans planted firmly on their couches.Cineworld’s share price sinks againThere’s always two sides to every UK share, of course. And it’s  possible that the huge investment Cineworld is making on cinema refurbishments and on novel ideas like its 4DX interactive theatres will pay off handsomely in the long run. There’s also the possibility that moviegoers could be queueing round the block to get into its cinemas if strong coronavirus vaccine rollouts continue in the US and UK.That said, the risks this UK share faces are still too high in my book. And I believe the Cineworld share price could keep on sinking (it just dropped to two-and-a-half-month lows around 93p per share).I’d rather buy these penny stocks!There are plenty of other penny stocks I’d rather buy today instead of Cineworld. And, like the cinema operator, these UK shares change hands at a price below £1. Here are a few on my radar today:I think Airtel Africa has a bright future as telecoms demand in African emerging markets balloons. This UK share saw revenues soar 13% in the nine months to December, latest financials showed. Bear in mind though, Airtel has a not-inconsiderable amount of debt on its books that could cause future problems.Gaming Realms also looks more attractive than the Cineworld share price, in my opinion. This penny stock makes and licences casino games for mobile devices, allowing it to exploit the soaring popularity of online gambling. I think it’s a great buy despite its massively-competitive marketplace.I also like the look of Accrol Group. Its share of the ultra-defensive toilet roll market continues to grow and grow. And margins are booming, thanks to improving product mix. I think it’s a top penny stock to buy despite the problem of rising paper costs. Royston Wild | Friday, 7th May, 2021 | More on: CINE John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Netflix and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img I’d ignore heavily-shorted Cineworld’s share price and buy these penny stocks instead Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images See all posts by Royston Wild Enter Your Email Addresslast_img

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Posted July 5, 2021 by admin in category "qrmgedtz

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