There's a Third Side to the AMC Stock Story
AMC Entertainment Holdings (NYSE: AMC) was a gymnastics star last year, but it didn't exactly stick the landing. The stock shed more than half of its value through the last seven months of the year. However, thanks to a shorts-blazing surge through the first five months of the year, AMC still wound up being the country's best-performing large cap for all of 2021. Shares of the country's leading multiplex operator were nearly a 13-bagger last year, and this is with its share count increasing nearly fivefold over the past four quarters.
There are two loud camps when it comes to AMC. The more vocal bulls argue that hedge funds are manipulating the stock's downturn through naked shorts and synthetic shares. The bears argue that movie theaters are on a path to extinction, and creditors will eventually zero out today's stockholders after AMC declares bankruptcy.
Just like the stock itself in 2021 -- a wealth-altering find through its peak in early June and then a portfolio destroyer for the last seven months -- opinions on AMC tend to go to extremes. But there's a third camp that doesn't garner the same kind of media attention as the two polarizing sides. I'm in that camp. I see AMC surviving. I just think the stock is overvalued by all historical benchmarks. Maybe you're like me. It's probably a good time to tell our side of the story.
Source Fool.com
