Here's Why AMC Entertainment Can Still Survive

Even though AMC Entertainment Holding's (NYSE: AMC) second-quarter earnings report handily beat analyst expectations, the theater owner's stock fell, continuing the downward trend experienced over the summer. AMC's business is looking better than it was, but even with the lower share price, it's still no reason investors should jump in.

AMC is not about to go under, and there are good reasons the theater operator can survive. But investors need to remember that valuation matters, and the elevated levels the theater chain continues to trade at are not based upon its fundamentals or those of the industry. So let's look at why AMC Entertainment can still survive, though maybe not thrive. 

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Source Fool.com