The Cineworld share price is tumbling today. Could it be a contrarian FTSE buy?

first_img See all posts by Jabran Khan The Cineworld share price is tumbling today. Could it be a contrarian FTSE buy? Image source: Getty Images Simply click below to discover how you can take advantage of this. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Our 6 ‘Best Buys Now’ Shares It’s been more than a year since I went to a Cineworld (LSE:CINE) cinema. Today saw preliminary full-year results released by the FTSE 250 firm. I wasn’t expecting much but I was surprised to see the Cineworld share price lose nearly 10% today so far, as I write. Is there an opportunity here for the VERY long term?Cineworld share price woesI could buy shares in Cineworld for 181p per share in mid-February 2020. By the end of March, shares were trading for a paltry 36p per share. This is a mammoth 80% drop.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…Since that low point, the Cineworld share price has fluctuated with restrictions easing over the summer and then going back into lockdown. The news of Covid-19 vaccinations signalled a potential lifeline for the beleaguered FTSE 250 firm too. Less than two weeks ago, shares were trading for 122p per share but it seems recent preliminary results have hit the share price hard once more.Preliminary resultsCineworld has been forced to close it sites from mid-March last year. Naturally, results and performance will reflect this, but I think they are worse than first anticipated. Revenue fell by over 80% to just over $850m. A mammoth loss of £3bn for 2020 will have played a part in the Cineworld share price falling sharply today. In 2019 it reported a pre-tax profit of over $210m. The FTSE 250 firm did attempt to reduce costs and preserve cash, however. Despite these measures, it was forced to seek funding to keep the lights on. It brought in over $800m in additional liquidity. Furthermore, it today announced an additional $231m from investors to see it through 2021.To provide a snapshot of just how much the last 12 months or so has affected Cineworld, it reported that there were just over 50m ticket admissions over this results period. The previous year, there were 275m.A FTSE contrarian investment or one to avoid?The Cineworld share price has been battered and bruised over the past 12 months. But with its sharp decline today, I’m trying to think about post-Covid-19 life and trading for CINE and whether I could pick up a great reopening contrarian buy.I do believe Cineworld will experience pent up demand. Many people are itching to enjoy the silver screen experience once more. In addition to this, there are lots of blockbuster movies that have been delayed and will come out once normality resumes so there could be a surge in performance at that time. Furthermore, Cineworld reported theatrical industry in other parts of the world has performed well since reopening. These include China, Japan, and Australia.Overall, I am not confident enough in the Cineworld share price or its overall investment viability right now. I do acknowledge its dip today was slightly more than expected, which presents a potential opportunity. Cinemas may also have a battle on their hands to regain customers from streaming giants who have gained so much more traction in the pandemic period.I don’t view Cineworld as a FTSE contrarian buy. In fact, if I am looking to invest in something a bit different, here is one stock I prefer and think will benefit from reopening. Get the full details on this £5 stock now – while your report is free.center_img Jabran Khan | Thursday, 25th March, 2021 | More on: CINE 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. Jabran Khan has no position in any of the shares mentioned. 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. 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