InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AMC Entertainment (NYSE:AMC) is now clearly in a turnaround. People are returning to the movies. Attendance is back, based on the company’s Nov. 8 release of its third-quarter results. This has huge implications for AMC stock. There now seems no doubt that AMC will become free cash flow (FCF) positive next year.
Image of the entrance of an AMC Entertainment (AMC) branded theater. undervalued stocks
Source: Helen89 / Shutterstock.com
And, of course, that is good news for AMC stock. In the past six months, it has risen from $13.95 on May 17 to $42.68 as of Nov. 15. And don’t forget at its low, AMC stock hit a trough of under $2 in January.
At that point in time it looked like AMC Entertainment, the largest movie theater chain in the world, was going to go out of business.
But management saved the company. They should be congratulated. Still, the turnaround is not over. I suspect that it is worth at least 22% more at $52.16 per share. This article will explain why I think this.
Where Things Stand With AMC Entertainment
On Nov. 8 AMC reported that revenue for Q3 hit $763 million, up significantly from $119.5 million last year. Moreover, compared to the $444.7 million in Q2, revenue was up 71.6% on a sequential quarterly basis.