#When will amc squeeze movie
#When will amc squeeze free

15, 2021 just before the meme stock frenzy began. This forced many shortsellers out of positions and in some cases, funds restructured and returned money to their investors.Īfter a volatile two years, however, AMC and GME are now trading above their price levels of Jan. The 2021 buying frenzy of so-called meme stocks started on social media site Reddit, and at-home traders used retail trading platforms such as Robinhood (HOOD.O) to lift the price of heavily shorted stocks such as Gamestop.

#When will amc squeeze movie

Federal Reserve slowed the pace of interest rate hikes and markets anticipated that rates would peak soon.Īccording to the Goldman note, seen by Reuters, the speed at which hedge funds exited bearish positions surpassed that seen in January 2021 when retail traders worked in concert to push shortsellers out of stocks such as videogame retailer Gamestop (GME.N) and movie theatre operator AMC Entertainment Holdings (AMC.N). The latest short squeeze, implying that stock prices rose so much that bearish bets become too expensive to hold, saw hedge funds caught out by a sharp rally in equities on Feb. Subsequently, management and the Board decided to remove the proposal from the proxy.LONDON/NEW YORK, Feb 6 (Reuters) - Hedge funds betting against stocks globally abandoned those trades last week at the fastest pace since 2015, surpassing the speed of their exodus from the meme stock frenzy two years ago, according to a Goldman Sachs research note. 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. Trying to use earnings or cash flow as a valuation tool would show exorbitant results and not be of much use.

#When will amc squeeze free

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. It fell an additional 67% during 2020 to end the year at $248 million. 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.