Are AMC Investors Buying the Wrong Dip?
Pain continues to be the feature presentation for AMC Entertainment Holdings (NYSE: AMC) investors. Shares of the leading multiplex operator opened 78% below last year's all-time high on Tuesday, a grim reminder that just having a passionate community of retail stakeholders isn't enough to keep a stock going.
Starting lines matter, of course. As brutal as AMC's plummet has been since peaking in early June of last year the stock has still more than tripled over the past year. The problem here is that a lot of AMC retail investors aren't long-term holders. A lot of them have joined with the stock on the way down, and in some cases this is their first and only investment in the stock market.
They have been buying the dip, even if it's probably more fair to call a nearly 80% plunge from its peak more a canyon than a dip. What if they're buying the wrong dip? What if real dip worth buying -- the one that can turn things around -- is the nacho cheese dip that AMC sells at the concessions stand inside its theaters? Hear me out.
Source Fool.com
