The stock closed Thursday up 15.19% at $14.48. BBBY also soared on Thursday, which seemed to wake up the AMC apes, but nothing rattles the cages of the apes more than a battle cry from the leader of the troop - apes strong together.ĪMC Price Action: AMC has a 52-week high of $55.07 and a 52-week low of $9.70. Related Link: AMC CEO Touts 'Top Gun' And Taunts Short Sellers After Shares Popped 12% At Monday Close Many believed this was a way to stir up talk about short sellers.įollowing AMC's strong earnings results at the end of June, Aron took to Twitter Inc TWTR to celebrate the company's success. Last year, during a live interview with Trey's Trades YouTube channel host Trey Collins, Aron "accidentally" dropped his webcam, revealing that he was not wearing pants. Why It Matters: This isn't the first time the AMC CEO has taken an apparent shot at those betting against his company. AMC amcstock amcshortsqueeze amcshortinterest APE Big Truth Revealed - AMC Stock Short Squeeze UpdateThe information in these videos shall not be constr. At this time, 21.91% of AMC's float is currently sold short, according to data from Benzinga Pro. Subsequently, management and the Board decided to remove the proposal from the proxy.It seems Aron is hinting at crushing short sellers. The proposal caused concerns that the company may substantially dilute existing shareholders. It actually makes sense to increase them as acquisition opportunities may present themselves given the current distress other theaters are probably under. While this would essentially double the number of shares outstanding, the key word is “could” since it is under no obligation to actually sell them until needed.Īs CEO Adam Aron said in an interview, which is in this SEC filing, he said none would be sold in 2021 and he went through the history of the company taking over three years to sell any additional shares the last time the number of authorized shares were increased. In its latest proxy AMC proposed to increase the number of shares that the company could sell by 500 million. At some point in time reality should catch up what can easily be called an overvalued stock.Ī customer gets a bucket of popcorn before seeing a movie at AMC Town Square 18. May 28, 2021: $11.8 billion with $5.47 billion in revenue = 2.15x market cap to revenueĪt the current valuation AMC’s shares are just under 7 times more expensive than 2017’s valuation level. To remove the impact of Covid-19 lets use 2018’s and 2019’s revenue, which are essentially the same, of $5.47 billion and Friday’s market cap of $11.8 billion. 31, 2020: $248 million with $1.24 billion in revenue = 0.20x market cap to revenue 31, 2019: $747 million with $5.47 billion in revenue = 0.14x market cap to revenue 31, 2018: $1.48 billion with $5.46 billion in revenue = 0.27x market cap to revenue 31, 2017: $1.58 billion with $5.08 billion in revenue = 0.31x market cap to revenue Probably the best metric is market cap to revenue. The buying power of Social Security has dropped 36 since 2000, meaning that the oldest adults who retired before 2000 would need more than 500 a month extra just to maintain the same level of. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use. Why the stock could round trip: Valuationīefore Covid-19 hit the economy in 2020 AMC had lost money and had negative free cash flows two of the three previous years. Fortunately, due to the company selling shares it has been able to reduce its net cash position close to where it was at the end of 2019 around negative $4.6 billion. However, with the increased number of shares and the stock price now at $26.12 AMC’s market cap is now $11.8 billion. High buy ratio with minimal sellers can cause a short squeeze and several. It fell an additional 67% during 2020 to end the year at $248 million. Definitely possible AMC has sooooo many naked shorts that need to be covered. Even before Covid-19 shut down theaters, AMC’s market cap fell by 49% from $1.48 billion to $747 million at December 31, 2018, to December 31, 2019.
0 Comments
Leave a Reply. |