Replies to post #41294 on AMC Entertainment Holdings Inc (AMC)

[conix]

AMC Entertainment: This Will End Badly Again

The major problem with the stock currently though is valuation. At the end of 2019, the stock had a market cap of about $750 million, or roughly 0.14 times what the company did in sales during that year. Based on a Monday lunchtime trading price of $33.30 and the share sales, the market cap is now $15.75 billion, which is roughly 3.03 times expected sales in 2023. That means that roughly two and a half years into the future, you'd still be paying more than 22 times as much for a business expected to be at 95% of its pre-pandemic sales rate. That doesn't make much sense, and the average street price target is only $5.11 at this point.

While AMC shares are rallying again on Tuesday, those speculating on this stock for the long term are likely to lose big yet again. There have been seven pullbacks of at least 26% so far this year, and it wouldn't surprise me if we see another one rather soon. While the latest equity sale does improve the balance sheet slightly, it's another round of dilution and the company remains in a huge debt hole. With the business not expected to return to pre-pandemic levels for another couple of years, and the movie industry changing thanks to streaming services. there is no reason for AMC to be worth this much.



AMC Entertainment Stock: This Will End Badly Again (NYSE:AMC) | Seeking Alpha

[Stockman1010101]

Shorts are now burning at the stake for their wicked, evil, fraudulent shorts. witches of Boston were falsely charged, but HF shorts are guilty as charged.
GO AMC.