AMC is a volatile day trade. This is not a hold at these prices. Stop buying into the hold nonsense. That message is to give other amateurs a longer window to sell before you do.

At current prices, AMC is up 13% from their 2020 pre-covid high. Even if you believe vaccines will send people back into the theaters, you also have to justify a significant growth beyond what they had in 2020 for you to make reasonable gains.

Now, I know what those long on AMC are going to say. Some self-fulfilling prophecy analysis to justify your emotion based trading. Something like, “People are going to be so jazzed to start going back, they’re going to miss it so much, the theater’s will be packed.”

My counter argument is that we are not seeing that trend at all. Take sports for example. We sat without sports for a long time. Despite all the people groaning about how much they miss sports, when it came back, ratings tanked. All major games had 20-30% ratings drop offs. We’ll see the same for the super bowl. People lost interest.

Another common trend is people have been spending big on their homes. Patios, pools, remodels..... media rooms. Case in point, Sonos is up 92% from their 2020 pre-covid high.

If you believe the theater industry will recover, and really want to invest in this space, then CNK is a better pick. It’s still 40% down from pre-Covid prices. At one point, they were trying to buy up AMC locations.

I’m not in any stock in this industry. I think there are better picks of battered covid stocks that have yet to recover.