Hi as a newbie investor would like to see what the consensus is on the current status of AMC shares.
There seems to be a general view that when the cinemas open the profits of the company will increase, together with the fact that they paid a lot of debt off.
I know its a bit of a gamble but just interested in your view.
Hi Clive. This is interesting as I just read that institutions are piling into AMC shares. So maybe they are seeing what you are seeing. Just depends if anyoen wants to go back to a cinema, or will be happy getting direct to view on their sofa at home.
I've bought heavily into Everyman Media (LON:EMAN) recently based on a belief that the UK economy will rapidly open up soon.
I think Everyman Media (LON:EMAN) is in a better position than traditional cinemas as it offers a night out experience, whereas traditional cinemas get most of their profits from major new releases.
I can't imagine the major studios will release any tentpole titles until most of the cinema-watching world re-opens, so this could slow any recovery one might except in AMC shares.
A quick look at their cash flow statements over the last few years (here), implies to me that they didn't really make much cash before, so I personally would be wary of their ability to pay down debt once things do get going again.
AMC is one of the most heavily shorted shares on the US market, the reason for the price spike recently was because of group of PIs on social media groups such as Reddit buying loads. Many platforms restricted trading in them and GME. Looking at the figures I can see why it’s shorted.
I would say it’s very high risk and you should do a lot of research before buying.
Too unpredictable. The price is currently determined by wild speculation, ignorance and herd psychology. If you really want to invest in AMC, it might be safer to wait for some price stability. I think there are much better options around at present.
ASX:AMC i am quite happy with When i first read the avoid comments I nearly had a heart attack :-)
Hi Clive,
I appreciate that this thread is quite aged now but AMC is a prime candidate for a short squeeze being listed as one of the most heavily shorted stocks on the market.
Granted based on the fundamentals this would be deemed highly speculative and it is, but at its core you have a company coming out of lockdown, increasing revenue and with enough cash on hand to sustain it until the end of 2022 and that's not factoring in any revenue generated in the meantime.
Is it going to go bankrupt any time soon... highly unlikely.
Is it going to squeeze any time soon... highly likely.
Hence the attraction.
P.S. The incredible number of "stay away like the plague" articles being written about AMC only serves as an indicator that certain institutions don't want investors purchasing... otherwise they would simply stay quiet, continue to short it and wait to get paid.
