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How To Take Advantage Of An Attractive Growth Prospect In AMC Entertainment Holdings

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AMC Entertainment Holdings (AMC) has had a rough few years despite a great 2018. AMC is not the only movie theater stock that has seen major declines that started back in 2015. The market began to adjust where they are putting their investments in the entertainment industry. Cord cutting seemed to be taking over. However, I think the movie theater industry is here to stay for at least a couple more years. Loyal fan bases do not have what it takes to resist viewing these upcoming movies (I will outline these movies later in the article) or pass up on some new very attractive subscription services that theaters like AMC is now offering.

I see AMC as the best prospect for my fixed income strategy because they are currently in a critical growth stage. We have seen a significant increase in capex spending which is a great sign that AMC is looking to expand and open more locations. Looking at AMC’s financials, you can tell that AMC is taking on much more debt then its competitors, which is also a promising sign that they are looking to increase leverage and expand their revenues. While revenues are already much greater then their main competitor in Cinemark Holding Inc. (CNK), their gross margins are quite similar.

Take note that throughout this article I will compare AMC’s situation relative to their main competitor, which is Cinemark. I believe

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