Lloyds Bank and Cineworld shares: Here’s what I’m doing about them now

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Far apart as they may seem, there’s a big similarity between FTSE 100 British bank Lloyds Bank (LSE: LLOY) and FTSE 250 multi-national cinema chain Cineworld (LSE: CINE). Both have been badly affected by the corona-crisis since last year. But both of them have also seen a bounce since the stock market rally that started in November. It would appear to then be good news that the FTSE 100 index continues to make gains. It’s now back to the pre-stock market crash levels of early March. 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…But will it continue to be good for both LLOY and CINE? I think this question is important because there are big macro drivers at work. These can affect the shares, even if the stock market rally continues. #1. UK national lockdownThe UK’s currently in lockdown because of a surge in coroanvirus cases. The threat of the new strain of coronavirus is an added issue. The mutated virus is restricted largely to this geography, which disproportionately impacts companies with the UK as its main market. One of them is LLOY.The longer the UK stays in lockdown, the more the economy suffers. This increases the chances of LLOY acquiring more bad debts as an increased number of establishments turn bankrupt. In contrast, CINE’s revenues depend in big part on the US market. While it’s entirely possible that the mutated virus will grow fast in other geographies too, so far that has been limited. This, I reckon, is a relief for investors in the FTSE 250 stock, which continues to rally despite a national lockdown in the UK. This isn’t something we can say for LLOY. #2. Brexit deal’s impact on LLOY and CINEThe LLOY share price is also impacted by the Brexit deal’s little headway on the financial services sector. This explains investor nervousness about the stock, which has fallen since the deal was announced. Here too, the impact on CINE is relatively limited, because its big revenue sources are outside of the EU countries. #3. Coronavirus vaccineHowever, there’s still a lot of hope across stocks, as vaccinations start. If the virus is indeed under control in the next few months, both the Lloyds share price and the Cineworld share price should continue to benefit. Neither of the two will be out of the woods by then, though. Both were facing issues of their own even earlier, and the corona-crisis has only exacerbated them. However, I think the important thing to remember is that investors put their money on these stocks hoping for better returns in the future, even if the present is shaky. With the overall situation still up in the air, I think the best shot is to buy those FTSE 100 or FTSE 250 shares whose prospects look brightest based on what we know right now. I’m looking closely at the Cineworld story for now, while letting the Lloyds Bank one play out for a little longer.  Enter Your Email Address Manika Premsingh | Wednesday, 6th January, 2021 | More on: CINE LLOY Image source: Getty Images center_img 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. Our 6 ‘Best Buys Now’ Shares See all posts by Manika Premsingh Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. 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. “This Stock Could Be Like Buying Amazon in 1997” Lloyds Bank and Cineworld shares: Here’s what I’m doing about them nowlast_img read more