Shareholders and The Public Are AMC’s Only Hope
Short and distort campaigns are flooding Twitter after AMC Entertainment beat Q3 earnings.
AMC’s share price tumbled despite the company having beat earnings expectations for Q3 of 2022.
Variety says AMC’s partnership with Zoom is bizarre and Hollywood Reporter is focused on AMC’s $227 million loss ($0.22 loss per share) despite revenue for Q3 being up $968.4 million.
Zacks Consensus Estimate predicted a loss per share of 25 cents, so AMC performed better than expected.
What we’re seeing is that the public alongside AMC shareholders are the only hope for the company.
Mainstream media isn’t willing to give AMC the credit it deserves.
Below are highlights from AMC’s Q3 earnings call.
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AMC Q3 Earnings Highlights
Here’s a quick look into AMC’s Q3 earnings call.
- 53 Million guests attended AMC Theatres in Q3, a 33% increase from Q3 of 2021.
- $1.5 billion in debt financing
- AMC finished Q3 with just under $900 million in liquidity ($896m in cash).
- AMC’s Preferred Equity (APE) helped the company raise $37 million in capital to pay down debt.
- The movie theatre company says market conditions are out of their control when addressing falling share prices.
- AMC had $500 million of improved and adjusted EBITDA, and an increase of $18.21 per patron.
- A new AMC credit card is set to be released early next year and retail AMC popcorn will be hitting the shelves soon.
- The company is striving for positive cash operations by Q4 of 2022.
AMC Entertainment had an overall successful Q3 for 2022.
On the list of the most anticipated movie theatres coming to AMC this year, is Black Adam, which has surpassed $300 million in earnings since its release three weeks ago.
Two other anticipated films coming to AMC theatres in Q4 include Black Panter: Wakanda Forever and Avatar 2.
AMC’s Market Cap is Still Below Its Debt Load
AMC Entertainment’s current market cap is sitting at $2.88bn, the company has north of $5bn in debt.
The movie theatre chain company has done an incredible job at paying down its debt, although company shareholders and the public are what’s keeping AMC Entertainment afloat.
As long as there are moviegoers and investors feeding the company with liquidity, AMC Entertainment is far from gone like many short sellers would hope.
The public’s eye on the largest movie theatre chain company in the world has not faltered; for them, going to the movies is merely a means of reality going back to normal after the pandemic lockdowns.
And as we saw in Q3 earnings, AMC’s attendees have increased 33% from Q3 of last year, seating more than 53 million guests in Q3 alone.
Shareholders also play a massive role in the success of the century old movie theatre company.
The difference is shareholders are battling short and distort campaigns in a conflict of interest with mainstream media and Wall Street institutions who hope to profit from the possibility of bankruptcy.
And although AMC is no longer on the brink of going bankrupt, Wall Street seems to have a personal vendetta against retail investors who disrupted the flow of their short scheme.
Holding AMC Stock?
What are your current thoughts on AMC stock and in the direction the company is going?
Leave your thoughts in the comment section down below.
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Also Read: Short-Term AMC Price Analysis
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Show CommentsAfter seeing how much money they paid the ceo,at the time it was near bankruptcy. Lead me to believe, the hedgefunds weren’t the only ones shorting the stock. Then they came out with ape,that hurt amc investors even more.so if you ask me about investing in amc.i would stay clear of it.to much manipulation to fight against.
Is there a possibility of contacting the Actors Guild to recruit actors as new stockholders? AMC is critical for their line of work. With their support the stock should rise.
The only way anything will change is if something changes…rules magically get enforced by the SEC or the DOJ convicts some hedge fund members and puts them in jail, or dark pools are banned…otherwise it’s SOS DD
I’m buying both AMC and APE and consider those 2 equities as my most risky investment and to that end Im maintaining a less than 1 percent allocation for them. Holding is easy and as my other investment grow so will that 1 percent. This is not investment advise. I’m long AMC and APE!
I am still holding and wait to see shoots covering!. HAHAHA.
I’m still holding amc and ape!!!!
The corruption is relentless. The shorts have increased. The Brokerage houses are not afraid. How will this end?
Let’s start a discussion! Leave your thoughts below.