What's going on with AMC stock?

Event Description

Ended

$AMC Entertainment (AMC.US)$ has been one of the most controversial stocks out there over the past couple of years. However, it appears that Show More

$AMC Entertainment (AMC.US)$ has been one of the most controversial stocks out there over the past couple of years. However, it appears that the show is almost over for AMC. This summer, CEO Adam Aron warned that the company was at risk of running out of cash if it couldn't sell new shares of stock to the public. Shareholders eventually gave Aron the go-ahead to make a fresh equity offering, which raised $325 million.

That lowered the firm's immediate bankruptcy risk to a degree. However, AMC lost more than $700 million over the past 12 months. It could burn through the new capital rather quickly, given the industry's poor operating results. That's especially true as the recent writers strike slowed down the pipeline of upcoming new releases. All in all, it's one of those bankruptcy predictions to remember.

AMC has done a valiant job trying to avoid restructuring. However, like $WeWork (WE.US)$ , at the end of the day, bankruptcy reorganization would be one of the plausible ways to cut costs, get out of bad leases, and otherwise try to salvage a working profitable business out of AMC's current struggling operations.

🎙️Q:

1. What's your opinion about the recent market performance of AMC?

2. What's your investment strategy?

View disclosures here.

Views

50K

Posts

241

Join event

Latest

Hot

Mr Trecherous