AMC Entertainment Holdings Inc. (NYSE:AMC) is one of the core “meme stocks” in the market ever since it ran with Gamestop (GME) last January and February, and again in May and June, based on intense and reportedly coordinated trading activity from retail investors working across social media platforms, with particular participation from traders on the Reddit platform. The moves in the stock helped to put real financial pressure on several hedge funds. But AMC shares have taken a big hit since then, falling back into the teens in recent action.
To make matters more interesting, the company just announced it has reached lease agreements and plan to reopen theatres in the Los Angeles and Chicago markets. AMC is expected to begin operations at AMC Northridge Fashion Center 10, formally a Pacific theatre, in Northridge, Calif., in the spring of 2022. AMC expects to begin operations at AMC Chicago 14, formally an Arclight location in NEWCITY located in the Lincoln Park neighborhood, under a new name in spring of 2022.
AMC Entertainment Holdings Inc. (NYSE:AMC) touts itself as a company that engages in the theatrical exhibition business through its subsidiaries. It operates through the United States Markets and International Markets segments.
The United States segment involves in the activity in the U.S. specifically in New York, Los Angeles, Chicago, Atlanta, and Washington, D.C. The International Markets segment focuses its operations in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Estonia, Latvia, Lithuania, Norway, and Denmark.
As noted above, AMC just announced it has reached lease agreements and plan to reopen theatres in the Los Angeles and Chicago markets. AMC is expected to begin operations at AMC Northridge Fashion Center 10, formally a Pacific theatre, in Northridge, Calif., in the spring of 2022.
Adam Aron, Chairman and CEO of AMC, commented: “These theatres have previously been high-traffic, successful locations, in two of AMC’s top markets, and we are pleased to offer the AMC experience at them a few months from now in 2022. These are prime examples of how AMC is staying on offense, looking for opportunities to strengthen our company through the acquisition of these popular locations. Our most recent acquisitions of AMC The Grove 14 and AMC Americana at Brand 18 are already showing their success as those locations routinely finish in the top 10 theatres in box office performance among more than 150 theatres in the LA market, and in the top 30 in the entire United States.”
In total, over the past five days, shares of the stock have dropped by roughly -16% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -48%.
Now commanding a market cap of $7.7 billion, AMC has a significant war chest ($1.6B) of cash on the books, which stands against about $1.7B in total current liabilities. AMC is pulling in trailing 12-month revenues of $1.5B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 538.7%. We will update the story again soon as further details emerge.
