“Not many stocks will post a 1,746% gainer in only 7 months. And yet, that is the power of AMC stock” — Paul Ebeling
A $10,000 investment in the huge locked out movie theater chain would be worth $184,575 now.
That is an astounding gainer and not seen anywhere else. The gainer in AMC Entertainment (NYSE:AMC) makes last year’s high flying S&P 500 stocks look weak.
The same $10,000 put down on AAPL this yr would be worth $10,995. And $10,000 riding on TSLA is now worth even less to $9,597.
That is why lots of retail investors ‘love’ AMC stock.
AMC stock is the new poster child for the rally in highly shorted stocks that took off in early Y 2021.
It took the place of GameStop (GME) as the leader in the Reddit rally fanned by enthusiastic retail investors. AMC’s gainer is now surpassing GameStop’s powerful gainer this yr.
Investors are emboldened as AMC took smart moves to stay afloat during the pandemic. That positions it to benefit from the economy’s reopening, or so investors hope.
“We recognize that it will take AMC years to repay its debt burden, and longer until it is able to revisit its growth strategy,” says an analyst at Wedbush Securities. “We believe the company has sufficient liquidity to allow it to survive with low utilization through at least Q-3, now that most of its highest earning theaters have reopened.”
We are Neutral with a Bearish bias the stock.
Have a prosperous day, Keep the Faith!