AMC to lose 75% of its value by 2022; this is the man who found the top (NYSE:AMC)
AMC Entertainment (NYSE:AMC), the world’s largest cinema chain, lost almost 76% its value in 2022 – start of the first trading day of the year embed 3% to $16.29, but landed at $4.07 a share to close in 2022.
That’s a far cry from its full-year 2021 performance: AMC stock jumped from $1.30 at the end of 2020 to $16.71 a year later, fueled by a massive series of gains. for “meme stocks” during a strange pandemic year for the theater industry.
Its 2022 is even more bizarre, if that’s possible, as CEO Adam Aron uses the company’s bailout from bankruptcy (thanks to an army of retail investors) apes” pouring new money into the business) to pursue a number of Reddit-friendly initiatives – including non-fungible tokens, accept cryptocurrencies (and can issue their own cryptocurrencies) and variable pricing.
And the company even took a strategic move outside of the film industry, in March investing in gold mining through a shares in Hycroft Mining Holdinga move could have been involving heavily indebted investor Jason Mudrick.
The end of March marks the 2022 peak for AMC stock (AMC) (specifically, the 52-week high of $21.09 on March 29, after the previous day jump 42.3%).
Among some of the top Alpha Search calls selected by the editors, Contributor Max Greve has been noticed. On the evening of March 28, Greve quoted AMC then lasted a month run up 50%Ask if there are more downsides.
No, Greve concluded. “AMC needs to generate profits of $500 million a year to reach a P/E ratio of 20,” Greve said on March 28. “AMC needs to generate profits of 500,” Greve said on March 28. million dollars per year”.
“AMC failed to make significant changes to its business model to justify its growth performance last month,” Greve said afterward, noting that buying the gold mine “shouldn’t cause investors lose focus on momentum in their core industry” and added that with much-needed innovation, AMC’s only new initiative – adding ticket surcharges to blockbuster movies like Batman – “can at most increase revenue by about 6%; industry has fallen by 50%” since the start of the COVID-19 pandemic.
AMC enters 2023 with concerns still clinging to the company about its debt.