The Globe and Mail reports in its Saturday, Dec. 21, edition that Cineplex ($34.01) found a timely saviour in Cineworld Group. The Globe's John Heinzl and Tim Shufelt write that for 2-1/2 years Cineplex shares have struggled in vain as the competitive landscape was rendered unrecognizable by the rise to power of streaming services. The approach of winter saw the stock hit an eight-year low. In December, however, Cineworld struck a $2.2-billion deal for Cineplex that would form North America's largest movie-theatre chain. For Cineplex shareholders, it is certainly a welcome plat twist, as the stock rose by more than 40 per cent in a single day. The Globe reported on March 14 that Raymond James analyst Kenric Tyghe continued to rate Cineplex "outperform," with a $31 share target. Cineplex shares could then be had for $24.56. The Globe reported on Nov. 28 that guest columnist Sean Pugliese, writing in the Number Cruncher, suggested Cineplex, being one of the worst performing stocks, could rebound nicely in 2020. Mr. Pugliese said the belief is that the dogs become oversold, and thus have the potential to bounce back the following year. Cineplex shares could then be had for $25.27.
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