Forget AMC: 1 Recovery Stock to Buy Today
AMC Entertainment Holdings (NYSE: AMC) shares are spiking again this week, with the rise seemingly divorced from the theater chain's underlying fundamentals. AMC has been able to recently raise more equity to weather the financial storm its facing, but that comes with significant dilution and should not be taken as an all-clear signal for investors.
Let's explore why AMC stock should really be avoided these days and why another recovery stock -- Planet Fitness (NYSE: PLNT) -- should be considered instead.
The pandemic has been daunting for AMC -- through no real fault of the management team. Not only did COVID-19 containment efforts force most of its locations to shut down or restrict capacity, but the pandemic also emboldened content creators to seek alternative release options and cut AMC out of the entertainment equation.
Source Fool.com
