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0 pointstyingq5y ago0 comments

It looks like it jumped from ~$2 to $20 at the end of January.

I do think the coronavirus lockdown might have created more people that found they didn't miss the theater than those that did. And it also opened up faster to video channels that might be difficult to take back.

0 comments

caymanjim5y ago

The $2->$20 bump was entirely the result of WallStreetBets pumping and others bandwagoning, but it's not an unrealistic valuation. It wasn't completely insane like GME. AMC only went up to $20 for one day (near its Oct 2018 price) and is now at $8.28 (roughly where it was at pre-pandemic).

Sadly for me I had it on deck as my next pandemic-recovery bet in January, waffled for a few days, and then those nutjobs at WSB ruined my plans.

fairity5y ago

> It's not an unrealistic valuation. It wasn't completely insane like GME. AMC only went up to $20 for one day (near its Oct 2018 price) and is now at $8.28 (roughly where it was at pre-pandemic).

I beg to differ. AMC has nearly tripled their share count during the pandemic via ATM offerings. So, an $8 share price now is not the same as it was pre-pandemic. AMC's valuation now is 3x higher than pre-pandemic, which is indeed, insane, considering the state of their business.

Source: https://ycharts.com/companies/AMC/shares_outstanding

jzer0cool5y ago

How does something like this work if someone were holding shares before? Would they expect to see a 3x on the price?

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freeone30005y ago

Right, but they've sold a ton of stock at highly inflated prices, used that to pay off debt, and are probably going to survive on continuing profits for at least a few years even if they're not going to exhibit much growth. They're now in a very solid position -- it's possible they're worth their valuation.

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