Why AMC Entertainment Stock Flopped Today
Shares of AMC Entertainment (NYSE: AMC), the world's largest movie theater chain, slipped 6.7% today. This morning, the company announced the sale of several theaters in the Baltics in order to help improve its liquidity.
Image source: AMC Entertainment.
AMC said it would sell nine theaters in Latvia, Lithuania, and Estonia for $77 million, or a valuation of 9.3 times estimated 2020 earnings before interest, taxes, depreciation, and amortization (EBITDA) levels before COVID-19. The group of theaters makes up less than 1% of the company's total base and could pave the way to more sales, as the company is likely to need more funding to stay afloat if the pandemic endures.
Source Fool.com
