AMC shares 2021 forecast growth revealed - How much money you would have earned by investing 1,000 euros in AMC shares since the beginning of the year.

AMC has become one of the phenomena of the stock exchange during 2021.

The shares of the cinema chain have skyrocketed more than 2,000% during the year in the heat of the push of retail investors.

These operators, many of them active users of Reddit's WallStreetBets forum, have been pushing the company's rally in the markets. Something that has not gone unnoticed by AMC executives, as they have taken note. Over the past week, the firm announced a new portal to connect individual investors and offered free popcorn, exclusive screenings and other benefits to its shareholders.

JPMorgan noted that, in the last week, the retail inflow into AMC's capital jumped to $ 583 million, 6.9 times above last year's average. According to their quantitative strategy, this kind of imbalance may lead to higher yield of the title in the coming weeks.

AMC shares 2021 forecast growth revealed

This can be understood much better with the rebound in market value starting on May 28, just as hedge fund Mudrick Capital Management LP sold a $ 230 million stake in the company for profit shortly after acquiring it, saying the shares were overvalued.

That generated once again a greater push from Reddit's community of small investors, who coordinated upon understanding that the fund had decided to leave the company having difficulty getting rid of its bearish positions. Short positions that exceeded 21% at the end of May.

AMC shares 2021 forecast growth revealed

The wild commercial activity occurred even after an investment firm sold its stake in the company. AMC revealed that it sold 8.5 million newly issued shares to Mudrick Capital. Subsequently, the hedge fund sold all of its securities to capitalize on profits, Bloomberg News reported.

Similarly, its top investor, Dalian Wanda, had also announced that it had divested itself of its shareholding package, while leaving the company and the shareholders ' meeting. Another reason AMC's stock continued to escalate on New York's parquet.

AMC shares 2021 forecast growth revealed: Last Wednesday, in fact, AMC skyrocketed 95% to close at record highs of $ 62.55 per share. Its previous record was $ 35.86 in 2015, according to FactSet data.

With these movements, the market capitalization of AMC exceeds 20,000 million dollars. In other words, it's worth more than large companies like Delta Air Lines, State Street and Best Buy.

AMC drags a similar situation to that seen in January with the 'stock meme' like GameStop, given that short investors increased their bets against AMC shares over the past month, possibly driving the upward movement. Last Wednesday the bears lost 2.800 million dollars due to the large rebound of the company's shares, according to S3. That brings its losses from the year to date to more than $ 5 billion.

AMC shares 2021 forecast growth revealed

With this situation, many investors ask themselves the following question: how much money would you have earned by investing 1,000 euros in AMC shares since the beginning of the year? The answer is absolutely surprising.

Anyone who had decided to bet 1,000 euros for the value on the first trading day of 2021 would now have to his credit about 25,540 euros. An exorbitant amount of money that highlights the entity of the rally in the AMC markets in recent months and the great appetite of retailers.

AMC shares 2021 forecast growth revealed: The retail boom has a great relationship with the denial by investors that cinemas have to lower the blind definitively once the pandemic is completely overcome. It is an activity with which these operators have great links and that they want to continue maintaining over time.

It may be a business that is going through another period of consolidation, which may usher in another golden age of returns. A large part of those profits reaped by AMC in the markets also came from the hand of the new capital raised so that the company could go on the offensive, acquiring missing chains.

Barron's recently published that AMC may increase market share and box office sales in the United States return to 2018 levels in a few years, total revenue could be estimated at 9,000 million, 6,000 million for tickets and 3,000 million concessions. Revenues in 2018 amounted to 5,500 million.

Then, with an improvement in gross margins, AMC could generate $ 600 million in cash flow annually. That would have put the share at a return on cash flow, based on current quote levels, around 4%. Meanwhile, the S & P 500 trades at a cash flow return of approximately 3.4%.

AMC shares 2021 forecast growth revealed

More news:

El Salvador wants to be the first country in the world to convert bitcoin into a legal tender

Nayib Bukele, president of El Salvador, wants his country to be the first in the world to adopt bitcoin as a legal tender. This has been announced in a video that has been broadcast at the Bitcoin 2021 conference, held this weekend in Miami.

Bukele's goal is to bring next week to Congress a legislative proposal to approve bitcoin as a legal tender currency in El Salvador, just as the US dollar is currently.

The president of el Salvador is intended to generate thousands of jobs with this degree, as well as "provide financial inclusion to thousands of people outside the formal economy" because "70% of the salvadoran population does not have a bank account and works in the informal economy", explains the president through a message on his Twitter account.

"Financial inclusion is not only a moral imperative, but also a way to grow the country's economy, providing access to credit, savings, investments and secure transactions," Bukele adds on his social network.

To carry out this measure, Bukele has confirmed that El Salvador will ally with Strike, a digital platform that already works as a bridge between traditional banking and bitcoin users, and that will presumably build the necessary infrastructure so that it can function as legal tender in this country.

The founder of this platform, Jack Mallers, has been optimistic about this measure, noting that it will help "demonstrate the potential and power of bitcoin for everyday use" and that making this cryptocurrency legal tender "protects developing economies from possible impacts of inflation that are common with fiat currency", according to statements collected by the CNBC chain.

It should be borne in mind that the economy of El Salvador contracted 7.9% in 2020 due to the coronavirus pandemic, according to data from the Central Reserve Bank (BCR), although this same body forecasts that at the end of 2021 it will experience a growth of 6%.