Why buy AMC?
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1.) COVID vaccine rollout has started, and we will be able to attend movies soon. The Biden Administration (sorry for getting political, just pls keep reading) has an ambitious plan (100 million vaccines in 100 days or whatever the fuck) and this pandemic is almost over. I’d give it until the end of the year.
2.) Most AMC theatres are open or they are planning to open soon with social distancing and mask measures in place. They will shut down the food services and concessions, but they are coming back.
3.) Consumers have a sentimental connection to movies. They will come back. People are starved for the outside world and will come out in massive hordes to watch movies. People will go out and see movies, take their kids, go on dates, etc. Nothing can replicate the experience of a giant screen and surround audio.
4.) This major influx of blue balled movie goers will cause a major boost in 2021. Then we will see a continuation of the year over year growth we have been seeing since 2012.
5.) The AMC business model is working. The revenue has steadily increased since 2012 year over year. In 2012, they made $811 million. In 2019, they made $5.47 billion. There has been a steady rise. THEY ARE NOT IN DECLINE.
6.) I understand they have many loans, but it is something that can be paid off in a few years with the help of their parent company, Wanda Entertainment, and increased profits in 2021.
7.) They will not go bankrupt. WANDA entertainment, a Chinese company owns the plurality share (20%) and will bail them out if it is necessary. They bought for $2.6 billion in 2012, and have seen a ROI, scoring $2.7 billion in 2013, the year immediately after their purchase. AMC is too good of an asset for Wanda to lose them. Also, AMC can take advantage of new stimulus and other government assistance programs.
8.) It’s extremely cheap right now because everybody is shorting, and there’s a pandemic. Corona is only temporary. Everybody thought GameStop was going to go under, until we showed them. Remember that.
9.) If there is interest or heightened trading in the stock, AMC can dilute shares and sell them to help finance operations and pay debt, using stock sales as leverage. AMC just did this today, and they can do it again if needed.
10.) AMC will not go bankrupt, not only because of the potential Wanda bailout, but they also raised $917 million today. They have enough runway to stay operational the end of the year. "Bankruptcy is off the table for now." (We should be able to return to theatres by then.) A slight majority of this new liquidity comes from issuing new shares, as described in 9. They are also planning to do debt/equity swaps, so those who take out debt can hold shares in the company, and AMC won't get fucked over by high loan payments.
11.) AMC is about 70% shorted, there is much potential to cause a squeeze. However, there are still many more reasons to invest in AMC beyond a simple short squeeze.
12.) AMC does very well when it is not pandemic. $5.4 billion in revenue last year, and there will be many movies, as well as many moviegoers that come out after the pandemic. Especially with major franchise movies, which have been delayed. They [have also reached a deal with Universal, which allows Universal to do home releases earlier, but stipulates they must be in theatres for 17 days before that.](https://variety.com/2020/film/n