3 Compelling Reasons to Avoid AMC Stock

InvestorPlace2021-05-13

Poor fundamentals, heavy dilution and increasing competition make AMC stock a risky post-pandemic play.The pandemic hasn’t been easy for anyone, but it has been the toughest forAMC Entertainment(NYSE:...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

StepUp
2021-05-15
StepUp
Amc sure has some die hard supporters
stocksown
2021-05-14
stocksown
nice
- Rem35:
  Yes
JiaLe
2021-05-14
JiaLe
Like and comment pls
Jan9413
2021-05-14
Jan9413
[財迷]
seejy
2021-05-14
seejy
umbeliveable
imsomeonelse
2021-05-14
imsomeonelse
又來了
- Tan123:
  same old shix again

Leave a comment

157

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1186620588?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2021-05-13 22:12","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1186620588","market":"us","top_or_hot":-1,"title":"3 Compelling Reasons to Avoid AMC Stock","media":"InvestorPlace","content":"<div>\n<p>Poor fundamentals, heavy dilution and increasing competition make AMC stock a risky post-pandemic play.The pandemic hasn’t been easy for anyone, but it has been the toughest forAMC Entertainment(NYSE:...</p>\n\n<a href=\"https://investorplace.com/2021/05/3-compelling-reasons-to-avoid-amc-stock/\">Source Link</a>\n\n</div>\n","source":"lsy1606302653667","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Compelling Reasons to Avoid AMC Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Compelling Reasons to Avoid AMC Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-13 22:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/05/3-compelling-reasons-to-avoid-amc-stock/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Poor fundamentals, heavy dilution and increasing competition make AMC stock a risky post-pandemic play.The pandemic hasn’t been easy for anyone, but it has been the toughest forAMC Entertainment(NYSE:...</p>\n\n<a href=\"https://investorplace.com/2021/05/3-compelling-reasons-to-avoid-amc-stock/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AMC","symbol_name":"AMC院线","start_time":0,"source_url":"https://investorplace.com/2021/05/3-compelling-reasons-to-avoid-amc-stock/","article_id":"1186620588","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1186620588","pubTimestamp":1620915120,"sourceInfo":{"source_id":"lsy1606302653667","name":"InvestorPlace"},"weMediaInfo":null,"summary":"Poor fundamentals, heavy dilution and increasing competition make AMC stock a risky post-pandemic pl","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"AMC":"AMC院线"},"translate_title":"回避AMC股票的三大迫不得已的理由","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":0.9},"content_text":"Poor fundamentals, heavy dilution and increasing competition make AMC stock a risky post-pandemic play.The pandemic hasn’t been easy for anyone, but it has been the toughest forAMC Entertainment(NYSE:AMC). The theatre chain has faced several problems over the past year, and after being a target of Reddit’s short squeeze, AMC stock has consistently been volatile.Source: Helen89 / Shutterstock.comThe stock went from $2 to hit a high of $20 in January 2021 but has fallen since then. It continues to attract speculative interest and has risen significantly since the beginning of 2021. AMC stock is currently exchanging hands at $10.34, as of midday May 12, but I do not think the stock is worth your money nor your time. There is a lot going wrong for AMC and it may have been able to avoid bankruptcy, but its fundamentals are shaky. With that in mind, let’s take a look at the 3 reasons to avoid AMC stock.Poor FundamentalsAMC Entertainment recentlyreported the first quarter earnings and it incurred a loss of $567.2 million. Despite reopening most of its treaters, the company reported a loss of $1.42 a share which is higher than the $1.31 expected by the analysts. The revenue stood at $148.3 million which is a huge decline from the first quarter in 2020 while the cash balance was $813 million.Even before the pandemic, the company’s business was flat. Even if we assume that moviegoers head to the theatres in the coming quarter, we must not expect impressive sales or revenue numbers.It may take the entire year for the company to report strong revenue numbers. Considering the current capacity restraints, it is hard to expect the company to generate higher revenue and sales.Heavy dilutionTo survive the pandemic, AMC Entertainment has been burning a significant amount of cash and it has raised the cash through dilution. It may work well for the company but is harming the shareholders.The company had earlier proposed the issue of 500 shares but scrapped it for the year and is planning to issue another 43 million shares. The company has quadrupled the share count in 2020. With each dilution, shareholders are losing value and investors are losing interest in the company. If AMC continues todilute the shares, there will be fewer takers for AMC stock in the future because it is a no-win scenario for investors.Stiff competitionOne cannot deny the fact that AMC Entertainment has stiff competition to handle. With a surge in OTT platforms and changing preferences of consumers, the theatre chain may not enjoy full movie rights from studios. Its biggest competition is withDisney (NYSE:DIS) who is making strong moves to continue using the Disney+ streaming service for new movies. It has entered into anagreement with Sonyfor the streaming of movies after the theatrical releases.Consumers will be less willing to pay for a movie they can watch from the comfort of their homes. Several OTT platforms will be directly releasing movies without giving them a theatrical launch. Most of us are used to spending time at home and we have become accustomed to enjoying entertainment on our couches. Who would be willing to pay for a movie that is available at your home at your convenience?The bottom line on AMC stockIf you are looking for a post-pandemic play, avoid AMC stock. There are several other options to consider.Weak financials and changing consumer preferences make AMC a poor choice. The company will continue to face competition in the future, and will have to fight for a smaller number of customers to generate revenues. It could maintain a presence in the market and may even go high based on speculation, but it will not last long enough to generate higher revenues.In short, avoid AMC stock this year.On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article.AMC rose nearly 13% in early market trading.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":196334303,"gmtCreate":1621014698102,"gmtModify":1704352011254,"author":{"id":"3579003441195579","authorId":"3579003441195579","name":"StepUp","avatar":"https://static.tigerbbs.com/3958f91f87396a3c9b8dda18a1d9c196","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Amc sure has some die hard supporters&nbsp;","listText":"Amc sure has some die hard supporters&nbsp;","text":"Amc sure has some die hard supporters","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/196334303","repostId":1186620588,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":198419267,"gmtCreate":1620979681859,"gmtModify":1704351459780,"author":{"id":"3581764501240522","authorId":"3581764501240522","name":"stocksown","avatar":"https://static.tigerbbs.com/1cd4b2b2ebfd577c03e2e9db6a1f4277","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"nice&nbsp;","listText":"nice&nbsp;","text":"nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/198419267","repostId":1186620588,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4326549,"gmtCreate":1620992996738,"gmtModify":1680788752455,"authorId":3580873482171177,"author":{"id":3580873482171177,"authorId":3580873482171177,"name":"Rem35","avatar":"https://static.tigerbbs.com/1151ceca2d806aa045339b7fa51b074e","vip":1,"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":198419267,"type":1,"supId":0,"prevId":0,"content":"Yes","text":"Yes","html":"Yes"}],"langContent":"EN"},{"id":198284218,"gmtCreate":1620961967734,"gmtModify":1704351204116,"author":{"id":"3577097645660752","authorId":"3577097645660752","name":"JiaLe","avatar":"https://static.tigerbbs.com/24a1ed581cfd6c2dbde8ebd02058830d","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Like and comment pls","listText":"Like and comment pls","text":"Like and comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/198284218","repostId":1186620588,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":198846640,"gmtCreate":1620952740980,"gmtModify":1704350983489,"author":{"id":"3575408266545497","authorId":"3575408266545497","name":"Jan9413","avatar":"https://static.tigerbbs.com/4fa4fd3ee6d51365df365f2bc310944e","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"[財迷]&nbsp;","listText":"[財迷]&nbsp;","text":"[財迷]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/198846640","repostId":1186620588,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":198862752,"gmtCreate":1620951523876,"gmtModify":1704350942112,"author":{"id":"3566888623365652","authorId":"3566888623365652","name":"seejy","avatar":"https://static.tigerbbs.com/6da6b43e152c674c5cce9536c5613129","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"umbeliveable","listText":"umbeliveable","text":"umbeliveable","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/198862752","repostId":1186620588,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":198891995,"gmtCreate":1620949705217,"gmtModify":1704350880603,"author":{"id":"3572697049328629","authorId":"3572697049328629","name":"imsomeonelse","avatar":"https://community-static.tradeup.com/news/4c0e0e71f2bf68f6fb5622004a9e309d","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":7,"crmLevelSwitch":0},"htmlText":"又來了","listText":"又來了","text":"又來了","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/198891995","repostId":1186620588,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4320128,"gmtCreate":1620949881222,"gmtModify":1680788637531,"authorId":3575263084566569,"author":{"id":3575263084566569,"authorId":3575263084566569,"name":"Tan123","avatar":"https://static.tigerbbs.com/f62a61b3de783a68b73436f05185453a","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":198891995,"type":1,"supId":0,"prevId":0,"content":"same old shix <u>again</u>","text":"same old shix <u>again</u>","html":"same old shix <u>again</u>"}],"langContent":"CN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":157,"commentSize":85,"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":"4.24.2","shortVersion":"4.24.2","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/1186620588"}