We recently published a list of 11 stocks Jim Cramer is bearish on. Since AMC ranks 10th on the list, it deserves a deeper look. But first let’s see what Jim Cramer is saying about the broader economic situation.
Jim Cramer in a program earlier this month said the “bulls” want the economy to slow down, they want rate cuts as well as a strong demand so that “their companies” won’t have to worry about the yield curve and macroeconomic situation. Cramer highlighted that all of this is confusing, as it’s not possible to have a weaker economy and yet see companies make a lot of money. Cramer also pointed to the latest data showing slowing manufacturing activity. The Institute for Supply Management’s manufacturing purchasing managers index fell to 48.7 in May from 49.2 in April, while analysts were expecting the index to jump to 49.5. Cramer said that the economic activity in the manufacturing sector contracted for the 18th time in the last 19 months. Cramer said the new orders contraction in May was a “little over frightening.”
Talking about the energy sector, Cramer said that he’d buy oil and gas stocks as the economy would sooner or later begin to get back to normal. Cramer also said that it’s surprising to see many retailers, including Dick’s Sporting Goods, GAP and Best Buy, performing exceptionally well. Cramer also talked about a Wall Street analyst who “double upgraded” Best Buy shares, saying the company “might be the biggest beneficiary” of the AI PCs boom. Cramer said he agrees with this thesis.
For this article we watched several latest programs of Jim Cramer and picked 11 stocks he’s bearish on. With each stock we have mentioned hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
AMC Entertainment Holdings Inc (NYSE:AMC)
Number of Hedge Fund Investors: 17
A caller recently asked Jim Cramer about AMC Entertainment Holdings Inc (NYSE:AMC). Cramer replied:
“I want you to sell, take your capital out.”
Cramer said that the balance sheet of AMC Entertainment Holdings Inc (NYSE:AMC) “is not good” and the box office numbers are “horrendous.”
AMC Entertainment Holdings Inc (NYSE:AMC) shares flew to the moon (temporarily) following the return of “Roaring Kitty” on Twitter. However, the stock is down 21% for the year, as AMC Entertainment Holdings Inc (NYSE:AMC) warned of a weaker Q2 as strikes slashed the number of film releases in the period. Attendance in AMC Entertainment Holdings Inc (NYSE:AMC) theaters fell 5.8% to 30.5 million in the first quarter. Data from Yahoo Finance shows that the Wall Street expects AMC Entertainment Holdings Inc (NYSE:AMC) to report a negative growth of 217.00% per annum over the next five years.
AMC management talked about guidance and expectations during Q1 earnings call:
“The second quarter’s box office, while likely — will be sequentially stronger and bigger than Q1, but it will still to be impacted by the strikes of last year and will fall significantly below last year’s second quarter because last year’s second quarter just happened to be the single strongest quarter in all of 2023. However, when we speak again in August after the second quarter is in the books, based on what we know today, we believe that the summer box office will be strong, healthy and growing. AMC is poised handsomely to benefit as our moviegoing audience will be thoroughly entertained next summer by titles playing at an AMC theater near you, including Disney’s Deadpool and Wolverine, and Universal’s Despicable Me 4 and Twisters.
And looking beyond just the summer, we similarly are excited about what we anticipate for the fourth quarter with such blockbusters titles as Warner Bros.’ Joker, Folie a Deux, Universal’s Wicked bringing to the screen with the Broadway musical that is run for decades and more like Disney’s Mufasa: The Lion King and Sony’s Venom: The Last Dance. I could go on and on and on about the movies that are coming in 2024. But not only are we confident about in the second half of 2024, we are also literally enthralled about an accelerating box office recovery as we head into 2025 and on into 2026.” [read the full earnings call transcript here]
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Disclosure: None. This article is originally published at Insider Monkey.
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