AMC: Another Short Squeeze Isn't Likely Anytime Soon

Seekingalpha2023-02-28

SummaryAMC Theatres was once one of my favorite short squeeze candidates but I've lost interest due to several key headwinds.The company plans to further dilute shareholders through the upcoming APE ...

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Comments

LowZackM
2023-03-01
LowZackM
You're wrong
Diadem
2023-02-28
Diadem
Everyone is bitting their nails on this one. A lot of naked shorts in anticipation that big hedge funds shorted the stock will tackle squeeze or retailer frenzy. But you cannot lid a corpse for forever. Sooner or later it will come out in open 😃. All these paid articles in barrons, fool n SA will not cause any buzz in retailers. They are holding it like "everything or nothing" [Happy] [Happy] [Happy]
- HSTew:
  yeah well said. it's better to have some reserve standby.
- marsc:
  T
- ONG1977:
  k
- AnthonyLim:
  ok
- cutetigger:
  [smile]
HOCK
2023-02-28
HOCK
Ha Ha Ha. If so c sure please short it
Fiona888
2023-02-28
Fiona888
Yes
- Fiona888:
  k

Leave a comment

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The company wants to convert APE into AMC shares but could dilute AMC shareholders in the process.The entire APE strategy seemed like a way to seize cash from optimistic retail investors in an attempt to repay AMC's long term debt.The underlying issue is that AMC hasn't innovated its business in years and cannot control its cash burn. I wonder if AMC CEO Adam Aron will speak further on this Q4 2022 earnings conference call.Perhaps AMC should embrace AI within its theatres to help free up cash flow (more on this later).Q4 2022 Earnings PreviewAnalysts are expecting quarterly revenue of $1.05 billion and earnings loss of 22 cents per share. I don't expect anything out of the ordinary here since AMC continues to burn through cash. 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Free cash flow hit negative $278 million even though quarterly attendance increased 37.9% to nearly 54 million in the same quarter.Modern day theatre chains have a bad business model that hasn't introduced any 21st century innovations.I don't understand why AMC Theatres hasn't introduce AI or Web 3.0 as a way to move the company forward into the next digital revolution.Using AI could decrease employee headcount, allow the company to pay remaining employees more money, and help the company reach positive EBITDA without relying on dilutive measures.Halts Are Preventing a Short Squeeze From HappeningIn my previous AMC article, I mentioned how an AMC short squeeze could occur on a positive earnings report and the possibility of AMC turning positive EBITDA in the near future.AMC's short interest is around 23% with 194 million shares on loan.However, AMC must deal with a handful of headwinds that prevent the stock from soaring to the moon.First off, stock halts have crushed AMC buying momentum several times over the last few years. Could it be Wall Street manipulation that is stopping AMC stock from going parabolical?Risk FactorsAMC stock benefited from cheap margin bet due to low margin borrow rates. The Fed raised interest rates and took away a lot of buying momentum from retail investors.The pandemic is entering America's rearview window yet AMC continues to burn through cash without any solutions other than diluting retail investors to stay afloat.AMC CEO Adam Aron is 68 years old and may be too long in the tooth in my opinion. He looks more like a liability to AMC Theatres than an asset at the moment.A younger, more tech savvy CEO would be a better fit for AMC Theatres if the company wants to stay in business.I'm Reconsidering AMC Stock AltogetherAs interest rates continue to rise, I'm losing interest in AMC stock as a solid long term investment based on bad business economics and resistance from the market makers.Big tech stocks such as Amazon (AMZN), Alphabet (GOOG), and Tesla (TSLA) look like more attractive investments at the moment. These companies have enough consumer demand and cashflow to weather almost any storm.AMC stock was once a great short squeeze opportunity but I believe that window may have passed already. Don't expect any serious gains while interest rates are high and the company continues to burn through cash and take advantage of retail shareholders.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9940062956,"gmtCreate":1677600829075,"gmtModify":1677600833193,"author":{"id":"3573568310387546","authorId":"3573568310387546","name":"LowZackM","avatar":"https://static.tigerbbs.com/768e9ec80d5d9568297fe487c4b4c95a","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3573568310387546","authorIdStr":"3573568310387546"},"htmlText":"You're wrong&nbsp;","listText":"You're wrong&nbsp;","text":"You're wrong","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9940062956","repostId":1106902322,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9940093901,"gmtCreate":1677584910304,"gmtModify":1677584940200,"author":{"id":"3575708827969002","authorId":"3575708827969002","name":"Diadem","avatar":"https://static.tigerbbs.com/fa00adf5918bb0b33a9181bba4430da7","vip":1,"crmLevel":8,"crmLevelSwitch":1,"idStr":"3575708827969002","authorIdStr":"3575708827969002"},"htmlText":"Everyone is bitting their nails on this one. 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Ha Ha. If so c sure please short it","listText":"Ha Ha Ha. If so c sure please short it","text":"Ha Ha Ha. If so c sure please short it","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9940004214","repostId":1106902322,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9940003722,"gmtCreate":1677578717067,"gmtModify":1677578720760,"author":{"id":"3581675432544786","authorId":"3581675432544786","name":"Fiona888","avatar":"https://static.tigerbbs.com/42688ec73bb74970876cdb05131f23f7","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":2,"crmLevelSwitch":0,"idStr":"3581675432544786","authorIdStr":"3581675432544786"},"htmlText":"Yes","listText":"Yes","text":"Yes","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9940003722","repostId":1106902322,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":105905829,"gmtCreate":1677578724681,"gmtModify":1677578727875,"authorId":3581675432544786,"author":{"id":3581675432544786,"idStr":"3581675432544786","authorId":3581675432544786,"name":"Fiona888","avatar":"https://static.tigerbbs.com/42688ec73bb74970876cdb05131f23f7","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9940003722,"type":1,"supId":0,"prevId":0,"content":"<u>k</u>","text":"<u>k</u>","html":"<u>k</u>"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":25,"commentSize":4,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1106902322"}