re: Holding AMC Thread- Diamond hands unite

I had 1000 shares at $9.08. Sold last week at $10.40.

I’m done.

I’m holding.

We rented an entire theater out last week for $100 so my two boys and a friend could watch the Lego Ninjago movie and I felt incredible pride of ownership as we enjoyed the movie in complete isolation.

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I lied it’s 12.10 average. I thought about selling and taking small loss but I’ll hold till it’s even or small profits.

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That day may very well come this week. Maybe even tomorrow.

I think it's a mistake, because a ton of positive factors are in play right now. Worst case scenario, we are looking at near bottom prices, and that's on the cusp of theaters going back 100% and blockbusters being released. Throw in the Amazon buyout rumors that Forbes keeps hinting at, 387 institutional investors with large stakes being took in the last few weeks makes this an attractive stock as is. Now considering all that, remember that millions of call closed in the money of Friday. Those options will be exercised. Millions of shares have been shorted, and those shares have to be covered. If we see a modest spike tomorrow, FOMO will liking kick in and this stock will start going parabolic. We are talking double, maybe triple the price in days. Someone didn't throw over $8 million into AMC at seconds before the bell on Friday, thinking it was going to drop.

Speaking as someone who once held bitcoin a few years ago, and AUPH when it was in the low single digits, I know what regret feels like.

What will the business of AMC be worth in 5 years?

What are the sales? Earnings? Dividend?

Are we just buying to sell to a “greater fool?”

I’ve not had experience in churning equities.
Good luck to everyone. I hope you time it perfectly. I guess there is some pleasure derived from being in the wave.

Please do not gamble money you cannot afford to lose.

BTW, I have had stocks that went to zero. Risk is ever present. I’m going to just watch the Reddit stocks. Maybe I’m missing out on the chance of a lifetime.

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AMC is the largest movie theater company in North America and Europe.

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That is an investment case. I could see having a position in the biggest operator of theaters in USA long term.

I like reading about market share, earnings, sales, etc

I’m not sure how to value “diamond” hands.

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That is an investment case. I could see having a position in the biggest operator of theaters in USA long term.

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That's my #1 reason why I'm in AMC and not GME. Reduced risk due to valid business model. COVID has this stock very depressed, but we are starting to see the light at the end of the tunnel. Multiple vaccines are out, very restrictive States are starting to loosen their restrictions, and COVID numbers are in a free fall. Forget the short squeeze, this should be a $20 stock by early summer just on merits alone.

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n 30+ years in the market, I’ve rarely found an easy way that lacks significant risk. I’ve heard “it’s different this time” more than once

At some point even “diamond” hands will sell. Markets are subject to reversion to the mean.
Good luck with the trade. At least get your capital out before the reversal comes.

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I 100% agree, I was simply describing the strategy behind "diamond hands". And of course, it will reverse, just like Gamestop and Volkswagen did, but do you think it will go below $8? GME opened at $39 on 1/21, rose steadily till it peaked on the 28th at $483. It closed Friday at $101. Imagine if brokers like Robinhood didn't restrict buying on the 29th! Completely killed the FOMO.

My point is, IF it does squeeze, and their is a good possibility, have an exit point, but IMO I don't see it going below it's current price in the long term. The current quarters numbers are going to be bad, but expected to beat estimate. Next quarter should be great assuming COVID numbers continue to decline and restrictions are lifted, which all indications point to.

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What significant risk do you see with this stock at the current price?

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I’m ok with it, but if it spike to the stratosphere there is no investment case for it.

I prefer boring stocks.

“Momentum” investing is not my wheelhouse.
I think people can succeed with any plan as long as they have time to follow the plan.

I work all day at the hospital, have a side gig, and I just don’t always have the screen open to trade the moment.

I’ve been wrong about some long term investments, but most of my lifetime returns have been in just a few blue chips where I’ve reinvested dividends for decades.
Markets go up, down, and sideways. I try to look for companies with easily described businesses like Apple, Hershey, etc. I would like to hold forever.

I think AMC is a great long term investment even if it tanks. I'm all in