Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ AMC shares Rise shares as new memo-saved favorite returns to the form

AMC shares Rise shares as new memo-saved favorite returns to the form

(Bloomberg) – AMC Entertainment Holdings Inc. resumed its upward trajectory in preliminary trading on Monday, halting a two-day decline for the money-making chain of movie theaters, which has become the new favorite of meme investors.

Shares were trading at $ 49.35 at 8:17 a.m. in New York, up 3 percent from Friday’s close. Shares doubled more than twice in the first two days of holiday cuts last week, before returning some of those gains after insiders went into cash with stock sales.

On the verge of bankruptcy just a few months ago, AMC is now the retailer’s favorite, with this year̵

7;s 2,200% profit as the largest share in the Russell 3000 index. The rise in shares allowed the company to sell equity and to strengthen its shaky balance. AMC is building a “strategic military chest,” B Riley analyst Eric Wald wrote in a note.

“In addition to our continuing expectation that AMC can improve its balance sheet and future cash flows by repurchasing / paying off debts, we can now see either acquisitions of smaller chains of exhibitors or takeovers of leases from troubled chains,” he said.

The impending shift in Russell’s indexes could be a problem for people like AMC and GameStop Corp., who began a obsession with memes back in January. Their expanded market caps of $ 24.6 billion and $ 18.4 billion, respectively, put them on the line to move from the Russell 2000 small-cap index to the Russell 1000 index of the largest US companies.

“The graduation of these high-altitude tickets could be the beginning of their epic cycle,” Wells Fargo analysts Christopher Harvey, Gary Libovitz and Anna Hahn wrote in a note Friday.

(Pre-trade updates and analyst comments starting in the third paragraph)

More stories like this are available at bloomberg.com

Subscribe now to stay ahead with the most trusted source of business news.

© 2021 Bloomberg LP

Source link