Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Equity Bottom-Up

Cineworld (CINE LN) levered up to buy Cineplex (CGX CN), just as the Coronavirus broke out. A deal that looked ugly prior to collapsing audiences is now likely to collapse the group.We believe Cine has flattered profits, to create the appearance of cashflow when in reality there is little. They have taken advantage of lease accounting changes to obscure leverage and minimise there obligations of which there are many.We think it is most unlikely that CINE will survive the year without raising further capital.

Cineworld (CINE LN) levered up to buy Cineplex (CGX CN), just as the Coronavirus broke out. A deal that looked ugly prior to collapsing audiences is now likely to collapse the group.We believe Cine has flattered profits, to create the appearance of cashflow when in reality there is little. They have taken advantage of lease accounting changes to obscure leverage and minimise there obligations of which there are many.We think it is most unlikely that CINE will survive the year without raising further capital.

Cineworld. Looking like a Horror Show, Sell