The best indicator for this trend is volume. Since they have a decent amount of cash and operating cash flow projections, I believe they are positioned quite well to take advantage of the expected increase in movie-going and with a 20% of float short interest by those (like myself) who have been betting against the meme stock traders - this can head north quite quickly on the backs of solid fundamentals improvements.
#When will amc squeeze movie#
With more and more movies coming out over the next few months and with the return of people around the United States and the world to movie theaters after the COVID-19 pandemic, I expect the company to see increased revenues slightly beyond what current projections are calling for. But over the past few months, the company's share price has returned back to earth and is not in a point where it may be fairly valued, or even a little undervalued. AMC Entertainment ( AMC), a movie theater company, has been the subject of 'meme stock' speculation over the past few years which saw it rise hundreds of percentage points on the backs of traders pushing it up without much fundamental basis. īret Kenwell is the manager and author of Future Blue Chips and is on Twitter. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. However, if investors opt not to trade AMC, I certainly can’t fault them. For the moment, AMC’s charts remain bullish and I won’t fight that momentum. In the case of AMC, I will default to the technicals.
However, we’re in an era where valuations don’t matter for certain stocks. By traditional standards, most investors would also consider AMC stock overvalued. The stock has never traded for the type of sales multiple it has now. AMC also isn’t forecast to be profitable this year or next.ĭo these observations, combined with the fact that AMC stock trades with a $26 billion market capitalization, make AMC overvalued? However, that would still be shy of the $5.4 billion in sales that AMC did 20. If those estimates come to fruition, AMC should do about $4.56 billion in sales next year. In 2022, estimates also call for a 90% boost in revenue. As such, analysts expect a 93% rebound in revenue this year. Breaking Down AMC EntertainmentĪMC Entertainment is seeing a massive rebound in its business as consumers flock back to theaters. While we don’t know what it would be - or if it will even come to fruition - a partnership between AMC and GameStop could trigger another one of these Reddit Rallies. Instead, I’m curious about the rumors floating around between AMC and GameStop working on a potential partnership. GameStop recently reported earnings, and while the stock is trying to work off its decline, I’m not focused on the results. There was no real or meaningful news to get it started. The moves come in a hurry - they’re violent and they’re unpredictable.įor example, in late August GME stock erupted 36.5% at its highs in a single day, while AMC stock jumped 31% at its highs. Whether it’s AMC, GameStop (NYSE: GME), BlackBerry (NYSE: BB) or something else. It’s hard to ever rule out a Reddit Rally hitting these short-squeeze candidates. It also saps some of the stock’s bullish momentum. On the downside, failure to hold $48 and the 10-day moving average puts the 21-day moving average and $40 on the table.
If AMC clears $56, the $60 resistance area is in play, followed by the high near $72.50. Above $50 could put the 61.8% retracement near $56 in play. As long as AMC can stay above $48 and the 10-day moving average, it’s okay on the long side. We now have a breakout over $48, as AMC stock contends with $50.
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