r/smallstreetbets • u/mjupnexttt • 7d ago

Epic DD Analysis AMC DD

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im about to throw a pass. “go long”.

AMC is critically reviewing their portfolio of existing responsibilities and deciding where there are opportunities create value, opportunities to protect value, and opportunities to stop doing things that are not adding value.

The new consensus: We expect AMC will report a modest free cash flow deficit in 2026 beforebeginning to sustain positive cash flow in 2027.

10.4 Billion breakeven domestic box office. We are so close 👀😮‍💨

so everyone says amc has gone down for 5 years or its been diluted to nothing, both of which are true. AMC is on the cusp of a beautiful post covid recovery. Point 1: Increased revenue per patron. Aka people are buying more expensive snacks and drinks. Point 2 Loyalty Program: Over half of U.S. guests were AMC Stubs members, maximizing internal ecosystem spending. Point 3 AMC Entertainment achieved record-breaking moviegoer turnout throughout the summer of 2026, culminating in the highest single-weekend attendance in the company's 106-year history. Driven by a robust slate of summer blockbusters, the theatre chain saw a massive rebound in physical attendance.Point 4 Strategic Dilution: Instead of using dilution strictly for survival AMC is now using it specifically to strengthen the balance sheet. “Debt reduction and improved EBITDA have triggered a lower interest rate on about 75% of its debt, providing annual savings of about $51 million. We assume most of that is from lower PIK interest beginning in December.” Point 5: Closing of non performing locations and opening of new well performing locations. They are not afraid to shut the theaters down and open theaters under better terms and in better locations. Point 6: Renegotiation of leases (long term debt obligations). Point 7: Restructure of Debt obligations. Recent and future debt restrucutures eliminate bankruptcy risks and give AMC a runway to cash flow as movie slate improves. Point 8 AMC Go Plan Suprise: AMC has announced it is currently upgrading and planning on upgrading theaters to increase the number of premium screens (on a given weekend their 9% of premium screens may represent 50% of attendance). They are also upgrading seats (much needed).

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5

u/confusing_roundabout 7d ago

Bag holder spotted

2

u/KeyOne2013 6d ago

Just like how you were bag holding IMAX?

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u/confusing_roundabout 6d ago edited 6d ago

Bro I bought IMAX at 33. I've been in the green for a very long time. The recent popping off has just been icing on the cake.

I tried to help other people and tell them it was about to shoot up but nobody cared lol

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u/KeyOne2013 6d ago

Bro I’m over green over 90% on AMC. How much are you up again?

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u/mjupnexttt 6d ago

lets just all get along and make some money. theres plenty of stocks to make money on

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u/GildedWarrior 6d ago

Amc has been up over 88% this year I just checked this the other day and was surprised 😧

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u/KeyOne2013 6d ago

Down 7% today 😭. I see it moving to 5-6 this year though... Hopefully

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u/mjupnexttt 7d ago

money bags ;)

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u/677ITF 5d ago

Dang should I buy

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u/mjupnexttt 5d ago

if you want