Since AMC does not pay a dividend, people invest for capital appreciation regardless of whether the investment horizon is one week, one month, or one year. Not a single person wakes up and says, let me buy 100 shares of XYZ to lose 50% of my capital. People invest in companies for either capital appreciation or to generate passive income through dividends/distributions. Just because a business is operational doesn't make it a good investment. I am in no way saying AMC is going out of business because, to put it simply, they aren't. The world is a harsh place, and sometimes the truth hurts. (Source: Seeking Alpha) Why AMC's income statement is a massive red flag that investors need to take seriously If you're still in this trade, please look at the material I will present and think about why you invested in AMC because chances are you will hold the bag while others make off with the profits. There are definitely people who paid over $40 per share, thinking the upward trend would continue, and now they're in the red. The people still holding onto shares of AMC for whatever reason are making a gigantic mistake, and some who followed the crowd could be underwater already. I want everyone to have positive experiences investing and seeing their hard-earned money appreciate over time. I tip my hat to everyone that made money by having the conviction to invest in AMC and not falling in love with the fairy tale by having the discipline to sell.
Retail investors should understand this and be more supportive. It's a stand against the corruption of hedge funds. This movement isn't about the fundamentals and sound investing. How about some of the comments in my last article, which include: Due to this, the price theoretically has no limit." I won't sell until the shorts cover all the naked shorts and buy back the synthetic shares. We can hold longer than the shorts can remain solvent. Camp AMC gets riled up and continuously tweets about diamond hands and never selling shares of AMC. What's even scarier than the price explosion AMC witnessed is the conviction it's following. The speculation frenzy with AMC is outright dangerous, and unfortunately, there will be investors who lose substantial amounts of money trying to follow the crowd. If you had the conviction to purchase shares of AMC and are in the black, congratulations, I just hope you're taking the win and moving on. In the past six months, shares of AMC are still up 1,705.05% as they traded for $2.18 on 1/14/21, which is an astronomical gain. Shares of AMC at publication traded for $47.91 and rose further to the low $60 range before their decline. In my previous article about AMC Entertainment Holdings ( NYSE: AMC) published on 6/4/21, I warned that the current market cap was dangerously high. Massimo Giachetti/iStock Editorial via Getty Images
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