AMC Entertainment Holdings, Inc. (AMC)
AMC Entertainment Holdings Inc. is a holding that provides theatre and exhibition services through its subsidiary companies. It forms the largest movie theatre chain in the world, with 356 movie theatres in Europe (a total of 2,866 screens) and 620 in the United States (7,967 screens). In 2012, the company was acquired for $2.5 billion by the Chinese conglomerate Wanda Group, which invested $500 million in modernising the chain of movie theatres. In September 2018, Silver Lake Partners purchased 32% of AMC Entertainment Holdings Inc. stock for $600 million and received one seat on the company's board of directors.
In that same year, AMC Entertainment began developing its online business, offering on-demand digital films for rent or purchase. However, even this business line's fast-paced development didn't completely compensate for the losses experienced by the chain of traditional movie theatres. More successful online entertainment platforms, such as Nexflix, was taking viewers away from those venues.
When the coronavirus pandemic began, the company's fate worsened. On 18 March 2020, it announced that it would close all of its movie theatres. Nevertheless, AMC Entertainment modernised its movie theatres' filtration systems and equipped them with electrostatic sprayers to disinfect the air. When quarantine restrictions were lifted, traditional cinemas reopened.
In January 2021, two additional share issuances were made for 50 million and 44.4 million shares, respectively, in addition to the company's 287 million shares already outstanding. Silver Lake bought the new shares in exchange for an investment of $500 million.
Trading opportunities
On 3 June 2020, AMC Entertainment announced that it had "serious doubts" about whether it would stay in business if the pandemic dragged on. In October 2020, the company stated that "existing cash resources would be largely depleted by the end of 2020 or early 2021".
By 4 January 2021, the company's stock hit its historic low of $1.91. However, as coronavirus restrictions ended and revenue began to grow, the company's share price began to rise again. In the first 6 months of 2021, it's increased over 20-fold!
Its average intraday volatility in H1 2021 has been 6.6%.
How to buy and sell AMC
You can buy and sell AMC Entertainment Holdings Inc. shares on stock exchanges, but the best way to trade it is through a broker or trading platforms, such as MetaTrader or Libertex, where trades are easier to make, leverage can be used, and you can even earn if the stock's value goes down.
