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AMC abandons talks to acquire bankrupt Cineworld's theaters
  + stars: | 2022-12-21 | by ( ) www.reuters.com   time to read: +2 min
Dec 21 (Reuters) - Cinema chain AMC Entertainment Holdings (AMC.N) said on Wednesday it was no longer in talks to acquire some theaters owned by now bankrupt Cineworld Group (CINE.L) following initial discussions with some lenders. AMC in August announced its preferred share APE as a special dividend for shareholders and a means to raise capital in the future. Shares of AMC rose nearly 2% in trading before the bell, while its preferred shares were up more than 3%. Cineworld shares fell 5%. During the discussions, AMC said Cineworld did not provide any confidential or non-public information, analyses, compilations, forecasts, among other documents to the lenders.
AMC Entertainment Holdings Inc. held discussions regarding a potential strategic acquisition of theaters from its rival, the bankrupt Cineworld Group PLC, according to a securities filing by AMC on Wednesday. AMC’s deal talks were held with certain lenders to Cineworld, who have a powerful role in that company’s bankruptcy process. The talks focused on AMC acquiring theater assets of Cineworld in the U.S. and Europe, and how such a deal would be financed.
Very good company. I prefer very much that you buy Pioneer, PXD, which I think is much stronger and the Charitable Trust owns it." Loading chart...D R Horton : "I think Horton is a very good choice, but you do know they all trade together. But I think you're right." Loading chart...Mastercraft Boat Holdings : "I think that's a good company.
Those who fought this trend abandoned Twitter, hired bodyguards and tried to hide from the angry mob that was attempting to will stocks higher by savaging the sellers. As a result, they overran their brains and outsourced them to others who claimed to know more than they did. My point is this: The crypto con and the Robinhood dollar conflagration can't produce enough money to buoy stocks. We will hold Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon , even as we've trimmed them higher. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Blackstone gets a slap from efficient markets
  + stars: | 2022-12-08 | by ( Jonathan Guilford | ) www.reuters.com   time to read: +9 min
NEW YORK, Dec 8 (Reuters Breakingviews) - Private markets seemed, for a while, the perfect antidote to the weirdness of public markets. Those models typically move much more slowly than the rapidly changing prices served up by public markets. These charms became much more potent during the stresses of Covid-19, when it became clear that public markets are not always a ruthlessly efficient price-discovery mechanism. RESILIENCE OR INTRANSIGENCECovid briefly scrambled the world, but bigger changes are coming that may scramble the calculus for private markets. During Covid, public markets seemed backward-looking, overreacting to the present moment while private markets were able to focus on the future.
Only 1% of retail investors look to sell their stocks next year, according to a survey. Retail investors have hit headlines since the pandemic by using fiscal stimulus to pile into meme stocks like GameStop and AMC Entertainment. But Finimize's latest survey suggests they've moved past the meme-stock mania to focus on more traditional investing methods, according to Rofagha. The survey showed that 29% of retail investors intend to use the downturn as an opportunity to add to their portfolios. And 38% of retail investors plan to carry on investing in crypto — even though digital assets have entered a bear market with bitcoin's price plunging 64% year-to-date to under $17,000.
The character of the stock market is changing as inflation starts to fall "like a rock," according to Fundstrat's Tom Lee. These are the types of stocks that see short-term upside if inflation continues to fall, according to Lee. Thus, the fall in gasoline will have an impact on both actual and perceived inflation," Lee said. Lee also highlighted that during the 1970's period of high inflation, gasoline prices never eased lower like they have so far this year. These are the types of stocks that should benefit most from falling inflation and a year-end market rally, according to Lee.
The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally. The S&P 500 in the previous session logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq (.IXIC) notched its best week since March. "The market is expecting the Fed to continue its hawkish rhetoric on rates. ET, the S&P 500 (.SPX) was down 17.25 points, or 0.43%, at 3,975.68, and the Nasdaq Composite (.IXIC) was down 115.13 points, or 1.02%, at 11,208.20. The S&P 500 information technology sector (.SPLRCT) was down 1.2% and among the leading sectoral decliners on the benchmark index.
The long-awaited sequel to 2018's smash hit "Black Panther" isn't just another Marvel film. "Wakanda Forever" has a chance to not only be the biggest opener in 2022, but also the highest ever opener of the month of November. Box office analysts and theater operators are expecting African American and Hispanic moviegoers to flock to cinemas this weekend. Like "Black Panther," "Wakanda Forever" features a predominately Black cast, but it also has several Hispanic actors. According to Comscore, 37% of the opening weekend audience for "Black Panther" was Black, accounting for more than double what the demographic usually represents for other Marvel films.
Meta Platforms (META) – The Facebook parent's shares rallied 4.3% in premarket trading after the company announced it was laying off 13% of its workforce, or more than 11,000 workers. DR Horton (DHI) – The home builder's stock slid 3.1% in the premarket after it missed top and bottom line estimates for its latest quarter. Walt Disney (DIS) – Walt Disney tumbled 7.4% in the premarket after missing top and bottom line estimates for its latest quarter. Affirm Holdings (AFRM) – Affirm Holdings plunged 12.2% in premarket trading after the buy-now-pay-later firm reported a wider-than-expected quarterly loss. Axon Enterprise (AXON) – Axon rallied 8.5% in premarket trading after the Taser maker reported better-than-expected profit and revenue for the third quarter.
Meta Platforms — The stock jumped 8% after the company announced it will lay off more than 11,000 employees. News Corp — Shares slid 5% after the company reported a slight miss on its fiscal first quarter earnings, compared to FactSet estimates. AMC Entertainment — Shares dropped 9.8% after the company reported another quarterly loss as operational costs increased. SeaWorld Entertainment — The stock fell 8% after the company reported weaker-than-expected earnings or $1.99 per share on revenue or $565 million. Roblox — Shares tumbled more than 15% after the company reported a bigger loss than expected for the third quarter.
Whether or not this means Democrats hold onto their majority or Republicans claim victory in today's elections is still an open question. Early voters cast their ballots in Atlanta, Georgia in the 2018 midterm elections in October. If Republicans gain seats in today's midterm elections, the thinking is that Democrats would have a harder time passing aggressive fiscal spending plans. What's your view on how a Democrat or Republican victory in today's midterm elections impacts the stock market? Goldman Sachs named which stocks to buy now that can help you capitalize on gains during Tuesday's midterm elections.
The AMC 25 Theatres in Times Square in New York is seen on Tuesday, July 8, 2014. AMC Entertainment on Tuesday reported another quarterly loss despite higher revenue from a year ago, as it spent more on operational costs. For the period ended Sept. 30, the company's net loss increased slightly to $226.9 million compared to the same period last year. Still, AMC said its overall per-patron metrics were up when it came to admissions revenue and increased consumer spending on food and beverages at its theaters. As of Tuesday, it sold roughly 14.9 million shares, which raised net proceeds of about $36.4 million.
Nov 8 (Reuters) - AMC Entertainment Holdings Inc (AMC.N) said its third-quarter loss widened, with the theater chain operator burning through more cash to keep its 950 theaters running as fewer blockbuster releases reduced footfall in cinemas. The company also said it raised just $36.4 million from the sale of 14.9 million of its preferred shares APE , listed in August, sending them down 5.6% in extended trading. On an earnings call with investors, Chief Executive Adam Aron noted the number of big movie titles being released by major studios was still down 20% to 30% versus pre-pandemic norms. It is this: movie theater operators need more movies," he said. "The question for AMC comes down to how to stem losses and manage its balance sheet while facing fewer major movies in the pipeline and ongoing operational challenges," said Jamie Lumley, analyst at Third Bridge.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 7, 2022. Stock futures were flat Monday evening following a winning day for markets as investors looked ahead to U.S. midterm elections on Tuesday. S&P 500 futures and Nasdaq 100 futures gained 0.03% and 0.10%, respectively. Shares of Lyft fell 13% while Take-Two Interactive and Tripadvisor slumped more than 15% each after reporting disappointing quarterly results. On Tuesday, Lordstown Motors , Lucid Group, Walt Disney and AMC Entertainment all report their latest quarterly results.
Monday Palantir Technologies is set to report earnings before the bell, followed by a conference call at 8 a.m. Tuesday Disney is set to report earnings after the bell, followed by a conference call at 4:30 p.m. Lucid is set to report earnings after the close, with a management call set for 5:30 p.m. Rivian is set to report earnings after the close, with management holding a call at 5 p.m. Beyond Meat is set to report earnings after the bell, followed by a conference call at 5 pm.
Monday: BioNTech, Take-Two InteractiveBioNTechQ3 2022 earnings release at 5 a.m. AMC EntertainmentQ3 2022 earnings release at 4:15 p.m. ETProjected loss: $1.14 per shareProjected revenue: $871 millionCramer said that his Charitable Trust is sticking with the stock. ETProjected loss: 29 cents per shareProjected revenue: $1.45 billionMatterportQ3 2022 earnings release after the close; conference call at 4:30 p.m. ToastQ3 2022 earnings release at 4:05 p.m.
There are two big hurdles for markets in the week ahead - another potentially hot consumer inflation report and the Congressional midterm elections. "100% of the time, the S & P 500 has been up 12 months after the midterm election." Midterm rallies Stocks tend to gain in the final months of midterm election years, and strategists have been expecting the market to move higher. CFRA Chief Market Strategist Sam Stovall said even when interest rates are climbing, the midterm election has been a catalyst for stocks. He examined market performance in other midterm election years when interest rates were going up.
The stock's Monday volume, which stood at over 10 million shares after the close, far exceeded the 506,000 shares investors have shorted, he said. "There is no way today’s price move is due to a short squeeze, it is virtually all long buying pressure," Dusaniwsky said. Many meme stocks have been pounded this year as the Federal Reserve tightens monetary policy, sapping investors’ appetite for risk. Shares of GameStop Corp (GME.N), which put meme stocks into the spotlight with its epic rally in 2021, are down 24% for the year to date while AMC Entertainment Holdings Inc (AMC.N) has fallen 60%. "If that’s the case that would further tamp down Treasury yields and create a tailwind for equities."
Equity analysts have slashed estimates and price targets over recent days as companies continue to report disappointing third-quarter results. Thirteen of these stocks — all part of the MSCI World Index — have median analyst price targets below their current share price, according to FactSet data. Global stocks Other stocks with price targets below current trading levels include Japanese multinational retailer AEON , U.S.-listed Clorox , and U.K. financial services company Abrdn plc. Equity analysts have slashed estimates and price targets over recent days as companies continue to report disappointing third-quarter results. Thirteen of these stocks — all part of the MSCI World Index — have median analyst price targets below their current share price, according to FactSet data.
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Movie theaters' post-pandemic recovery may soon (or already) be over, and that could have consequences for AMC Entertainment , according to Credit Suisse. The firm highlighted several warning signs about the cinema chain in a note Thursday morning, reiterating its underperform rating on the stock and its price target of 95 cents per share. Fourth-quarter attendance levels are tracking at about 66% of those seen in the same quarter in 2019, and box-office revenue should grow by just about 2%, Credit Suisse said. For next year, Credit Suisse sees a roughly 5% increase in 2023 box office revenue. Outside the movie theater-going experience, Credit Suisse also warned about studios' production and customers' viewing and streaming expectations.
Seven of the stocks — all part of the MSCI World Index — have analysts' price targets below their current share price, according to FactSet data. Equity analysts at investment banks and research firms rate stocks as sell or underweight if they believe the shares will perform poorly over the next 12 months. Analysts' median price target for AMC is 57.5% below the current share price, FactSet data shows. Wedbush Securities analyst Alicia Reese downgraded AMC from $4 to $2 but believes the company has long-term potential at her price target. Clorox Analysts' average price target on Clorox is just 1.4% below the current share price, but 11 out of 14 analysts covering the stock give it a sell or underweight rating.
While there is limited pressure overall as many businesses refinanced in 2020 and 2021 when funding was cheaper and investor appetite stronger, high-yield companies with immediate financing needs have to find the right time to tap investors, corporate bankers say. Adding loans and revolving-credit facilities, speculative companies have maturities of around $1.47 trillion through 2027, ratings firm Moody’s Investors Service said last week. And the high-yield bond market isn’t closed, it has just become more expensive, bankers said. Movie theater chain AMC Entertainment Holdings Inc. on Friday said that its subsidiary Odeon Finco PLC priced a $400 million bond. Bankers said they have received few calls from triple C-rated companies in recent months looking for maturity extensions.
Operating income Once we remove operating expenses from gross margin dollars , we are left with what is known as operating income. This is especially important from a cash flow perspective as many companies define free cash flow (a non-GAAP metric) as "operating cash flow less expenditures on property, plant and equipment." Part 3: Cash flow analysis The cash flow statement is the middle child in a financial report — it gets overlooked. Investors may look to use operating cash flow or free cash flow for this equation. AMC's cash flow Let's finish by taking a look at the cash flow statement.
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