|AMC||AMC ENTERTAINMENT HOLDINGS INC||9.99||+0.21||+2.15%|
While CEO Adam Aron called the swings “interesting” he’s reminding investors AMC is a survivor ahead of the company's quarterly results Wednesday.
“In January AMC announced that we raised $1.2 billion of cash...and paid off an additional $6 million worth of debt so we could say with confidence we are going to work our way through this pandemic. That was a major change for AMC. As for those Redditers, all I can say is this, there is a lot of affection for AMC as a company across the United States” he said during an appearance on FOX Business’ "Claman Countdown" on Monday.
Still, bets that the stock will fall have been on the rise, even as shares have gained 395% this year alone.
“This looks like more of a momentum short play rather than a fundamental short play”, Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3 Partners, explained to FOX Business. “Shares shorted have increased by 20.97 million shares, worth $195 million, over the last thirty days and by a slower rate of 3.33 million shares, worth $31 million, over the last seven days,” he noted.
AMC is expected to post a loss of $3.15 per share after the closing bell on Wednesday, while revenue may fall to $142.35 million from $1.4 billion during the same period a year ago, based on estimates tracked by Refinitiv.
Just days ago the chain re-opened over 527 of 600 U.S. locations, including New York City, and Aron believes business will recover as more people get vaccinated.
Plus, moviegoers have a pent-up demand for what is expected to be a blockbuster movie slate, with Tom Cruise’s "Top Gun" sequel and "F9," the next installment of "Fast and Furious" franchise set for release.
“We have so many blockbuster movies that were delayed and deferred from 2020 to 2021...wait till you see what happens to the movie business from Memorial Day to the 4th of July weekend,” he forecasted.