Investors unimpressed as struggling cinema chain operator takes advantage of record stock price
AMC’s stock is worth $0 per share, given its weak earnings, dilution from recent stock offerings and mountain of debt, says investment analystClosed signs on an AMC cinema in New York, the US, April 29 2020. Picture: REUTERS/BRENDAN MCDERMID
“Our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” the cinema chain operator said in a statement. Wednesday’s record price was 30 times the level AMC traded at the end of 2020 and came a day after it issued 8.5-million shares to Mudrick Capital, which the hedge fund flipped at a profit.
AMC CEO Adam Aron on Wednesday offered even the smallest shareholder a free large popcorn if they signed up for a newsletter. AMC shares had continued to gain as they were hyped online with calls for small investors to buy shares and call options on certain “meme stocks”.
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