AMC likely to fully crash before end of year

11 thg 5, 2022

As the AMC crash continues after looking at their recent quarter financials I believe we could see $1-2 or lower before year end. AMC is highly unprofitable and burning hundreds of millions every quarter with no sight of profitability in the near future. Their current cash is $1.165 billion from $1.592 the previous quarter, a reduction of $427 million. On top of that their share count increased from 400 million to 515 million. Even with some cash in hand the dilution spiral seems to have already begun and will accelerate as their cash reserve deplete.

At most this company is worth $1-2. Their previous best earning were around $1 a share with current revenue far below their previous peak. Even if they get back to peak earnings they have a incredibly larger interest expense. With the already heavy dilution that’s previous peak of $1 EPS is only 20 cents now. 20 cents EPS at a 10 PE is $2.