AMC stock

[UnrealizedPotential]

I am curious if anyone holds AMC entertainment Inc. stock.
I know like a lot of stocks it has been beaten down. I saw a video of the CEO of the stock say they have no revenue coming in due to the coronavirus resulting in the closures of its theatres.

So my questions are if anyone holds the stock, will you continue holding it? Or will you wait to see if they can get funding from the government to pay their bills? Mr. Adam Aron, President and CEO, was on CNBC recently and was asked if funding from the government was forthcoming for AMC and he drew a blank face, saying he no longer could hear the interviewer. AMC will likely try to restructure their fixed costs but it is unclear if they will be able to do so.

It looks bleak for this stock right now. How will they pay the rent ? How will they pay their bills? This stock could be a good opportunity or a death trap. I do not currently have a position in AMC but I am looking from afar. Any thoughts?

[travelover]

Oh.......... entertainment. I was hoping Rambler was coming back.

[HadEnuff]

Quote:

Originally Posted by travelover Oh.......... entertainment. I was hoping Rambler was coming back.

I must confess, that was the first thought I had as well.

[target2019]

Quote:

Originally Posted by travelover Oh.......... entertainment. I was hoping Rambler was coming back.

More likely to be the Gremlin.

[Markola]

My Javalin can beat your Rambler..if we’re going downhill.

[Sunset]

With 80" TV's and some even in 4K , plus streaming all you want for $12/mo.
I cannot believe theaters still exist.

The only advantage they have is to show a new movie first for about 1 or 2 months before it's generally available.
Personally I can shift my expectation and view "new" movies on my private giant screen without anyone getting in my way, and being able to pause the movie for bathroom/snack breaks.

[ESRwannabe]

Quote:

Originally Posted by UnrealizedPotential I am curious if anyone holds AMC entertainment Inc. stock. I know like a lot of stocks it has been beaten down. I saw a video of the CEO of the stock say they have no revenue coming in due to the coronavirus resulting in the closures of its theatres. So my questions are if anyone holds the stock, will you continue holding it? Or will you wait to see if they can get funding from the government to pay their bills? Mr. Adam Aron, President and CEO, was on CNBC recently and was asked if funding from the government was forthcoming for AMC and he drew a blank face, saying he no longer could hear the interviewer. AMC will likely try to restructure their fixed costs but it is unclear if they will be able to do so. It looks bleak for this stock right now. How will they pay the rent ? How will they pay their bills? This stock could be a good opportunity or a death trap. I do not currently have a position in AMC but I am looking from afar. Any thoughts?

I don't own it but if I did I would dump it.

Universal has eliminated their movie release window. So you can get a digital copy/rental the same day it comes out in theaters. Other movie producers will do the same. I'm sure WarnerMedia and Sony will at least. The only hold out might be Disney, but now that they have a new CEO, its harder to say.

IMHO, movie theaters are in permanent decline. Streaming is going to be the most important revenue source to the media companies and its just a different world now. Cord cutting is going to continue to increase. The only hold outs will be boomers that aren't comfortable changing (which is fine, that category matches my parents in this case). Millennials will completely ditch the old cable/movie theater model eventually. The younger generations will not even be a part of that older model. They like watching stuff on their phones and messing around with user generated content like TikTok and Instagram.

IMHO theaters will continue to decline in the same way that physical retail will continue to be replaced with online retail. IMHO movie theatre decline will be much faster.

[aja8888]

Quote:

Originally Posted by ESRwannabe IMHO theaters will continue to decline in the same way that physical retail will continue to be replaced with online retail. IMHO movie theatre decline will be much faster.

And yet they built two new large movie theaters in a 10 mile radius of us last year.

[atmsmshr]

When we get past the first wave of this pandemic, large social gatherings will likely be curtailed in specific cities/counties/regions whenever another outbreak starts. Movie theaters will top the list of what is temporarily closed by government to quell an outbreak.

Unless they are a Drive in Movie Theater.

[Sunset]

Quote:

Originally Posted by aja8888 And yet they built two new large movie theaters in a 10 mile radius of us last year.

Just wait, maybe they will build a drive-in theater too

[UnrealizedPotential]

It is vital that AMC stock get bailout money if they are to survive. I am not saying that is a good thing or a bad thing, just that it must happen if AMC is to survive. Investors seem to be anticipating they could possibly be getting monetary support as the stock is now in positive territory.

Of course I don't think we know yet, as congress is still debating where bailout money will go, still it is interesting for me to watch what happens.

[Midpack]

Quote:

Originally Posted by UnrealizedPotential It is vital that AMC stock get bailout money if they are to survive. I am not saying that is a good thing or a bad thing, just that it must happen if AMC is to survive. Investors seem to be anticipating they could possibly be getting monetary support as the stock is now in positive territory. Of course I don't think we know yet, as congress is still debating where bailout money will go, still it is interesting for me to watch what happens.

I understand you're not taking sides, but why forestall the inevitable? If they want to take out business loans on their own, so be it. Movie theaters were already a declining business even with a booming economy, we should not prop them up now? With streaming and home theater quality, it's time to move on - many people already have. I won't miss $10 popcorn with fake butter...

[Bigdawg]

Quote:

Originally Posted by UnrealizedPotential It is vital that AMC stock get bailout money if they are to survive. I am not saying that is a good thing or a bad thing, just that it must happen if AMC is to survive. Investors seem to be anticipating they could possibly be getting monetary support as the stock is now in positive territory.

My VHS player repair guy wants some bailout money too. And he told me that his reel to reel player repair guy wants some of that action. Geez, next thing you know the 8 track player industry will be getting some.

[Midpack]

Quote:

Originally Posted by Bigdawg My VHS player repair guy wants some bailout money too. And he told me that his reel to reel player repair guy wants some of that action. Geez, next thing you know the 8 track player industry will be getting some.

[UnrealizedPotential]

Quote:

Originally Posted by Bigdawg My VHS player repair guy wants some bailout money too. And he told me that his reel to reel player repair guy wants some of that action. Geez, next thing you know the 8 track player industry will be getting some.

Well, I would say when your VHS repair guy and his reel to reel player employ over 130,000 they will be up for consideration regarding bail out money, otherwise I find your example a poor one and your attempt at humor lacking.

[atmsmshr]

I would prefer that essential services and manufacturing be supported first. Then, those industries that employ large numbers of people that may only boarder on essential services. (Like restaurants) Marginal declining industries that have substitute competition? - back of the line.

I would rather see student loan debt relief before bailing out AMC.

[Dtail]

I believe the current movie "The Hunt" is being advertised as going straight to the consumer. Don't know the details, but perhaps that is how the movie industry survives by running first shown movies for the first month it plays.

[UnrealizedPotential]

Anytime there is bailout money there will be winners and losers. Some will be happy and some will not. It is up to congress to decide. We can have our opinions but that is all they are, is just our opinions. No one asked to go out of business. It is not anyone's fault that the coronavirus put a lot of businesses in dire straits.

But it will be congress who decides what businesses get support and which do not. I do not envy congress in this decision, there will be some brokenhearted people for sure left out in the cold when the money gets handed out.

Whether I agree with the business model of AMC and those like it are one thing, but to look into the eyes of all those thousands and thousands of employees who work in those theatres and say you are not worthy of our consideration is quite another.

[Sunset]

Quote:

Originally Posted by UnrealizedPotential Anytime there is bailout money there will be winners and losers. Some will be happy and some will not. It is up to congress to decide. We can have our opinions but that is all they are, is just our opinions. No one asked to go out of business. It is not anyone's fault that the coronavirus put a lot of businesses in dire straits. But it will be congress who decides what businesses get support and which do not. I do not envy congress in this decision, there will be some brokenhearted people for sure left out in the cold when the money gets handed out. ....

Sure, tough choice to decide which companies will be supported with tax payer money, fortunately for Congress there are lobbyists who will contribute to their campaign funds and advise them of which companies are paying deserving the most.