AMC Entertainment took advantage of a record stock price on Thursday with its second share issue in three days, while admitting it did not know how long its stellar show would last and warning investors of the risks involved.
The theater chain operators chief executive Adam Aron had offered even the smallest shareholder a free large popcorn if they signed up to a regular newsletter, as retail punters helped AMCs share price to a record close of 62.55 on Wednesday.
However, AMCs price was down 8 on Thursday, after the company said had agreed to sell up to 11.55 million of its shares from time to time in an atthemarket program.
Our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last, AMC said in a statement.
A number of Wall Street analysts have said AMC is already heavily overvalued and many institutional traders have said they were steering clear of the stock, the latest target of a pack of smalltime traders organized on Reddit and other social media.
Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment, AMC said, echoing a warning from regulators earlier this year on the potential pitfalls of such stocks
Wednesdays record price was 30 times the level AMC traded at the end of 2020 and came a day after…