Is AMC Entertainment a Buy After Announcing Video Streaming Plans?

2019 has been billed as a transitional year by AMC Entertainment's (NYSE: AMC) management. It's the year that Stubs A-List -- the company's subscription service answer to the now-defunct MoviePass -- came into its own; the company started screening National Football League games at select theaters; and it recently became the first theater to take a stab at home entertainment by launching on-demand movies and TV shows.

The world's largest cinema chain is testing new ideas, and it's driving decent enough growth in a mature industry. In fact, management said the company's Stubs A-List program is already profitable. But profits overall have been subdued during this period of "transition", and debt is high from its acquisition spree of Odeon & UCI, Nordic Cinema Group, and Carmike Cinemas a couple years ago. This could be a long-term value stock but probably not the stable dividend play income investors are looking for.

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