$AMC Entertainment(AMC)$ Bullish

Kia ora Tiger traders,

AMC Entertainment Holdings saw an 8% surge after trading was resumed. The stock was halted due to a Delaware court's decision to block the company's plan to convert its preferred equity units (APE) into common shares. This plan, opposed by common stockholders, aimed to raise capital by issuing new shares, which would have diluted existing shareholders' holdings. The halt and subsequent court ruling have significantly impacted the stock's price, leading to increased trading volume and a short squeeze, with 28% of AMC's shares shorted.

Fun Facts:

1. Popcorn Galore: AMC sells over 52 million bags of popcorn annually, enough to fill about 1.5 Olympic-sized swimming pools!

2. Meme Stock Fame: AMC became a household name during the 2021 meme stock frenzy, alongside GameStop, capturing the imagination of retail investors and internet forums like Reddit’s WallStreetBets.

Historical Facts:

1. Long History: AMC Theatres was founded in 1920 in Kansas City, Missouri, by the Dubinsky Brothers. It originally operated as a single movie house and has since grown into one of the world's largest cinema chains.

2. Innovations: AMC introduced the concept of multi-screen cinemas in the 1960s, which revolutionized the movie-going experience by offering multiple films in a single location.

Analysts’ Insights:

- Thomas Hayes of Great Hill Capital: The halted stock conversion plan has created a "fantasy of full recovery in movie theaters," making equity holders optimistic as they avoid dilution.

- Chad Beynon of Macquarie: Maintains a sell rating with a price target of $4, reflecting concerns about the company's high cash burn rate and the ongoing litigation.

- Jason Bazinet of Citigroup: Also maintains a sell rating with a price target of $3.2, highlighting potential downside risks from continued financial instability and market volatility.

- Alicia Reese of Wedbush: Reiterates a hold rating with a price target of $3.5, suggesting a cautious approach due to uncertainties in AMC's recovery path and strategic initiatives.

Quote to Inspire:

"Trying to short AMC during a short squeeze is about as smart as burning money." — Matthew Tuttle, CEO of Tuttle Capital Management.

Happy trading ahead! Cheers, BC 🍀

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