Cineworld Shares Edged 3.32% Higher on Wales COVID-19 Rules Change. What’s Next?

The Cineworld Group plc (LON: CINE) share price edged 3.32% higher after confirming that it will not require its Welsh customers to produce COVID-19 passes according to the latest government regulations.

The Welsh government has lifted the mandate for COVID-19 passes starting Friday 18 February 2022 as one of the first moves in return to normalcy. As a result, Welsh citizens look forward to not having to wear masks in public places later this month.

Also, Read Cineworld Shares – An Overview and How to Buy.

The relaxation of COVID-19 rules in Wales comes when England has signalled that it could end all the remaining Covid rules before the month ends if the current encouraging data keeps coming in.

Cineworld could benefit immensely from the relaxed rules as moviegoers would be back to experiencing almost the same conditions at cinemas as before the pandemic struck in 2020.

The lifting of Covid restrictions across the UK, including Scotland and Northern Ireland, bodes well for Cineworld. The UK is its home market, and the exciting slate of blockbuster movies set for release this year.

The relaxed rules could provide one more tailwind that could push Cineworld’s share price higher following the significant drop occasioned by Cineplex’s massive £722 million damages award after it pulled out of the acquisition deal.

However, the impact of the relaxed Covid rules might not be as huge compared to Cineworld winning its appeal against the Cineplex award, which is weighing heavily on its share price.

Cineworld currently has a market capitalisation of £561 million, and paying Cineplex could easily bankrupt the firm since it does not have the funds to make such a hefty payment.

Therefore, winning the appeal against Cinelex could significantly affect Cineworld’s share price compared to the relaxation of the Covid rules in England, Scotland, Wales and Northern Ireland, which make up the United Kingdom.

Investors interested in buying Cineworld shares may find its current share price quite attractive. However, I would wait for the appeal to be heard before jumping in as a favourable ruling could push the shares higher.

However, Cineworld shares could sink if Canada’s Appeals court rules in Cineplex’s favour leading to losses for investors. Therefore, I could miss out on potential gains by waiting but skip massive losses if the court rules against Cineworld.

On the other hand, investors who get in early could book massive returns if the courts rule in Cineworld’s favour, as the shares could shoot higher. Such is the nature of investing; hence, you must choose which tradeoff works best for you.

*This is not investment advice. Always do your due diligence before making investment decisions.

Cineworld share price.

Cineworld shares edged 3.32% higher to trade at 41.76p, rising from Monday’s closing price of 40.42p.