DIS - AMC Entertainment Holdings: An Upgrade Is Now Justified

2024-01-23 17:51:39 ET

Summary

• AMC Entertainment's stock has declined by 41.4% since September 2023, but recent financial data shows signs of improvement.
• The company's revenue increased by 45.2% in the third quarter of 2023, and it generated a slight profit compared to a loss in the previous year.
• AMC has been working to reduce its debt through equity offerings and debt exchanges, but it still faces significant financial challenges.

Times have not been particularly pleasant for movie theater operator AMC Entertainment Holdings, Inc. ( AMC ). Back in early September of last year when I downgraded the stock from a 'sell' to a 'strong sell', I warned my readers that the stock's plunge was not over just yet. The downgrade was driven by a worsening of the company's fundamental condition. Even as management attempted to raise additional equity, shares continued to fall. And with a high amount of debt on its books, I warned that we could eventually see a bankruptcy scenario....

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