CMCSA - AMC Entertainment: Box Office Blast-Off 'Inside Out' Market

2024-06-17 12:09:01 ET

Summary

• AMC Entertainment had a successful weekend at the box office with Disney's Inside Out 2, and Deadpool may perform even better.
• Despite recent successes, long-term fundamentals for AMC remain uncertain, with the crucial issue of restoring output volume remaining unresolved and, frankly, inauspicious.
• Rising ticket prices at theaters may indicate a lack of strategy shift towards a more diversified film slate, potentially impacting any possible return to free cash flow.

I wrote about AMC Entertainment ( AMC ) last month for the first time in a while , as I’ve generally stayed away from the whole “meme stock” trade. While I don’t really go in for some of the more hostile commentary thrown meme traders way by certain parts of the Wall Street establishment - plenty of Wall Street traders have bought bad stocks before, and a short squeeze is not a ridiculous thesis on which to buy a stock - purely as a matter of personal preference, I prefer not to make any buys based on short squeeze theses, or for that matter anything other than long-term fundamentals. But I hasten to add, that’s a personal investing philosophy, not a put-down.

I am writing about AMC again, which ordinarily I would never do so soon after my last article. I usually like to let my thinking germinate for a few months at least, in the minds of both myself and my readers, before I return to a topic....

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