The movie chain is in big trouble.
- music selection: “Straighten Up ” — Tycoon
The movie chain AMC (AMC) is in dire financial straights. Coronavirus shut down a lot of theaters temporarily. Most are back open at partial capacity but the seats are empty. It seems people would rather stream content from home than spend two-plus hours wearing a mask. The company is burning through cash at a terrifying rate. I expect they are heading to bankruptcy and a share price of zero.
I have had a limit order open at 1.03 per share for the 18JAN2021 2 strike puts for some time.
Ten contracts cleared the market today. I don’t expect a savior. The economics of the business are really bad right now. Anyone wanting to get into the business at this point is better served waiting for debt to wiped out in bankruptcy and then bidding on the remaining distressed assets. I should roughly double my money in 71 days.
Devour your prey raptors.
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