AMC: Time To Sell On Strength

Mercury Research profile picture
Mercury Research
1.14K Followers

Summary

  • The sharp run-up in price presents a golden opportunity to lock in handsome profits on AMC while reducing risk.
  • P/S or market cap/sales indicates AMC is expensive versus peers and far exceeds its historical range.
  • While the worst may be over for industry revenues, I estimate the Box Office could still record a massive shortfall in ticket sales from a typical year.

New York during the COVID-19 emergency.
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Introduction

Following the huge gains following my bullish call on AMC Entertainment (NYSE:AMC), I believe now is the time to cut positions and turn bearish following the recently sharp run

This article was written by

Mercury Research profile picture
1.14K Followers
Mercury Research has tracked the financial markets through several cycles, with prior experience in multi-asset funds’ strategies. The core methods focus on extracting value through fundamental analysis, technical analysis and macro financial markets indicators. These skills are applied across multiple strategy styles and markets with absolute return targets. Formally trained PhD in economics and finance.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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