Was Jim Cramer Right About These 11 Stocks?

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7. AMC Entertainment Holdings Inc. (NYSE:AMC)

Number of Hedge Fund Investors: 17

A caller said they bought shares of AMC Entertainment Holdings Inc. (NYSE:AMC) for under $3 and asked if they were “on a rocket ship to the moon.” Cramer advised a more cautious approach:

“I want you to sell — take your capital out and you can play with the house’s money for the rest. The balance sheet, even after the most recent sale of stock, is not good — and the box office numbers are horrendous. So take out your cash, let the rest run.”

Cramer was right as the stock is now back down below $3, recording a 36.99% decline since that episode. The American movie theatre chain AMC Entertainment Holdings Inc. (NYSE:AMC) is struggling with weak box office revenues and ongoing debt issues despite retail investor interest and volatility.

Cramer continues to advise his viewers to not buy the stock. Here are his latest comments from late April this year:

“The answer is that they should have reorganized by now and they haven’t. They have way too much debt. I want you to stay away from that one.”

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