Hollywood is leaving AMC Entertainment (NYSE:AMC) behind. One movie studio after another is postponing the debut of its feature films until 2021, leaving little more than reruns for movie theaters to show.
Regal Theaters parent Cineworld chose to reclose all of its theaters for the foreseeable future as a result, but AMC is determined to stick it out. That’s creating financial problems for the theater operator, and its stock is approaching the lows it hit when the coronavirus pandemic first broke in March.
Investors need to decide whether AMC’s deeply discounted value makes it a screaming buy, or if it’s in real risk of going bankrupt.
The situation certainly looks bleak. Even AMC just warned it was in danger of running out of cash by the end of the year and…