Today is Friday, August 19, 2022.
New to this newsletter? Sign up here.
AMC's "Relatively Weak" Q3
Shares of AMC Entertainment (NYSE: AMC) dropped 3.01% in after-hours trading on Thursday after the movie theatre company commented on the state of its business.
Bearish: AMC Chairman and CEO Adam Aron said in a statement that “the film slate in the third quarter of 2022 is expected to be relatively weak.”
Bullish: However, Aron also said that the company is “optimistic about the increasing demand for our portfolio of movie theatres” and that AMC has more than $1 billion in liquidity.
Background: The comments come one day after rival Cineworld (OTCMKTS: CNWGY) said that recent admissions levels have been “below expectations” and there will be a limited film slate that will last until November. The company said this will negatively impact the business.
Numbers: Cineworld’s stock is down 74% in 2022. AMC’s stock is down 27% this year but is up 17% in the past 30 days.
Final Thoughts: It’s a rough time for the movie theatre industry. And AMC is still living up to its meme stock reputation.
Notable Earnings Today: Deere (NYSE: DE), Foot Locker (NYSE: FL), Buckle (NYSE: BKE), Vipshop Holdings (NYSE: VIPS), Kalera (Nasdaq: KAL).
Notable IPOs Today: PaxMedica, Inc. (Nasdaq: PXMD).
Notable Equity Crowdfunding Campaigns Ending Today: Happy Cows Group Share (Honeycomb), Red’s House (Mainvest), MadeInUSA.com (Fundify), We’reDough (Mainvest), Stride Tech Medical (StartEngine), PUPS Pet Club (Mainvest).
Notable Economic Events Today: N/A.
MSG’s Potential Spin-Off
Photo by Seth Hoffman / Unsplash
Shares of Madison Square Garden Entertainment (NYSE: MSGE) jumped 7.26% in after-hours trading on Thursday after the company’s board of directors said it will explore a potential spin-off that would result in a separately-traded public company.
Be Entertaining: The spinoff would contain the live entertainment business, including Madison Square Garden and Radio City Music Hall. It will also include the entertainment and sports booking business, The Radio City Rockettes and the Christmas Spectacular production, and agreements with the New York Knicks and New York Rangers. MSG Networks, the company’s television networks, will be included.
Remaining: With those properties gone, the current company will be comprised of MSG Sphere venues and its majority interest in TAO Group Hospitality.
Benefits: The company said the spin-off would give shareholders “greater investment choice and visibility into each company’s businesses.” It would also be structured as a tax-free spin-off to all shareholders.
Numbers: MSG Entertainment’s stock is down 16% this year but is up 8% in the past 30 days.
Final Thoughts: The board did not announce a timetable for this spin-off, so it could take a long time.
Equity Crowdfunding Spotlight: New 3D Technologies
Briefly describe your business. N3T has developed technology that allows the display of 3D images and video on monitors/TVs without glasses or other equipment. We differ from other options in that we require no proprietary systems and no loss of resolution.
What are the terms of the investment for your campaign? Common shares, $0.60 per share, see Netcapital. Or contact us if you would like a more significant size investment for subscription information.
What makes your startup special? Unique 2D/3D capability, can be used as are current monitors. $400B/year market. Resolution and brightness like today's 2D displays. Proven, working product. Early to market licensing model: relies on current manufacturers to sell and distribute.
Trends to Watch
Meme Stock Craze: Meme Lord Ryan Cohen Unloads Bed Bath & Beyond Bet, Sending Shares Spiraling (The Wall Street Journal)
Stick a Fork in it: Buzz Over Potential Ethereum Hard Fork Token Fizzles as Price Tanks (CoinDesk)
Brew-tal: Starbucks COO to Depart, Role to Be Eliminated in Overhaul (Bloomberg)
Retail Apocalypse: Kohl’s cuts guidance, blaming inflation for softer sales from middle-income shoppers (CNBC)
Streaming Killed the Cable Star: Streaming outperforms both cable and broadcast TV for the first time ever (NPR)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.