AMC Entertainment Holdings Inc. (NYSE: AMC) soared by more than 20% this week, closing at $13.08 on May 19 trading. Overall industry mood improved as a result of a return to theatres and the announcement that AMC had purchased a share in advertising services provider National CineMedia.
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AMC Entertainment Holdings disclosed with the US Securities and Exchange Commission on Wednesday, May 18 that it owned a 6.8% ownership in National CineMedia, a firm that advertises in movie theatres. Networks such as Cinemark and Regal CineWorld, which compete with AMC Entertainment Holdings Inc. (AMC), hold more than 51 percent of NCM. AMC Entertainment Holdings became the third-largest owner of this advertising company after the transaction.
Audiences are starting to return to cinemas after a long hiatus due to the epidemic, and big studios are finally presenting long-awaited premieres. This circumstance normally boosts the movie chain’s prospects. Furthermore, more moviegoers equal more advertising.
Remember that AMC Entertainment Holdings Inc. (AMC) released its fourth-quarter results at the end of March, indicating a significant improvement in its financial status. As a result, the company’s net loss shrank by nearly seven times, to $134 million from $946 million the previous year.
The new films rekindled audience interest, and as a result, the number of visitors grew more than sixfold year over year during the reporting period, approaching 60 million in the quarter. AMC Entertainment’s revenue increased nearly tenfold to $1.17 billion as a result of this. In comparison, it was only $162.5 million in the same quarter a year ago.
As a result, AMC Entertainment Holdings Inc. (AMC) has begun the process of resuming normal operations.
A closer examination of the stock price reveals that it is currently trading 34.85% higher than its three-month low. The stock is now trading -81.99 percent below its 52-week high and 34.85 percent above its 52-week low.