Whether you are looking to buy or sell AMCS stock, the company’s third-quarter results are essential to pay attention to. Not only does the company report a 162% increase in sales, but the net loss shrank to $121.6 million from $344 million a year ago.
Sales soared 162% to $1.17 billion.
Earlier this week, AMC released stronger-than-expected quarterly results. Sales for the second quarter climbed 162% year over year to $1.17 billion, while net losses shrank to $121.6 million. It also reported a positive working money stream of $52 million.
AMC had cash of $1.6 billion on its balance sheet at the end of the quarter. Its outstanding share count was 103.8 million. It expects to report revenue of $162.5 million for the three months ending in December.
AMC’s inventory has risen to more than 160% of its year-to-date low, which indicates that demand is shifting away from supply. As a result, its film schedule is expected to be more robust in the coming months.
Net loss shrank to $121.6 million vs. $344 million in the year-ago period
During the first quarter of 2022, AMC Entertainment Holdings, Inc. reported more robust results than Wall Street expected. The company also repaid its debt at an attractive market premium. The company’s net loss shrank to $121.6 million, compared to $344 million in the year-ago period.
AMC’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) improved to $106.7 million. It was higher than the $88.5 million reported in the first quarter. AMC paid its debt, and the company used its war chest to acquire new theater screens in the United States.
The company’s preferred equity stock, which will be issued to common shareholders on August 19, will give AMC more financial flexibility. The preferred will be listed on the New York Stock Exchange as APE.
Shares remain vulnerable to short squeezes.
Despite a recent uptick in AMC Entertainment Holdings (AMC) stock prices, the company remains vulnerable to short squeezes. After all, the company has 95 million shares on short interest.
When a company has a high level of short interest, it is a red flag that indicates a higher risk of a short squeeze. However, this doesn’t necessarily mean that investors should take a chance on shorting the company. It’s essential to consider the spread of your portfolio and your attitude toward risk.
Short-sellers are betting that the price of the stock will fall. When that happens, they borrow shares to sell and repurchase them for a lower price. This increases the buying pressure on the stock. They will lose their bets if the market doesn’t move in their favor.
Shares are hard to borrow from short sellers.
Getting short AMC stock is becoming more and more difficult. There are fewer shares available, and borrowing them costs short sellers a lot of money. And it’s not like AMC is a company in trouble or about to go under.
It’s no secret that AMC has had some concerns about its business fundamentals. Its third-quarter slate of new movies was weak. Unfavorable unemployment data also contributed to the stock’s high demand.
However, there are still some things to know about borrowing AMC stock. First, it’s essential to understand what the borrower pays for it. AMC’s borrowing fee rate is 20%. This means that short sellers are paying around 20% of the price of a share. This is a lot and could prevent a short seller from making a profit.
Tokenized shares are supposed to be held by a custody agent.
Traders and investors who want to short the stock of AMC Entertainment (NYSE: AMC) have a lot to think about. After all, it’s down 70% from its highs of a year ago. As a result, borrowing shares has become prohibitively expensive. It’s a good thing there are tokenized shares of AMC, which are supposed to be held by a custodial agent. But are those there?
The AMC website states 400 million tokenized AMC shares are available for trading. This equates to about 525,000 wrapped AMC tokens. In November, FTX opted to delete its white paper on the subject, severing ties with its escrow agent, CM-Equity.