AMC Entertainment Holdings, Inc.

AMC Entertainment Holdings, Inc. (NYSE: AMC) is the largest theatrical exhibition company in the world. It operates ~950 theatres and 10,500 screens globally.

Key Highlights

• The company reported a YoY surge of 22.53x in revenue to USD 444.7 million in Q2FY21 (ended June 30, 2021) compared to USD 18.9 million in Q2FY20, reflecting recovery from the COVID-19 pandemic.
• Its net loss for Q2FY21 reduced to USD 343.6 million from USD 561.2 million in Q2FY20.
• On September 07, 2021, AMC announced that it witnessed record attendance during the labor day weekend. Over 2 million viewers visited its US theatres, and over 0.8 million people watched movies in their international theatres.
• AMC's gross margin for Q2FY21 was 71.8%, higher than the industry average of 55.9%.
• Negative net margin of 77.4% in Q2FY21, whereas the peer median stood at 4.2%.
• Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 1.91 to USD 72.62.
• AMC's share price has increased 217.30% in the past six months.

Technical Price Chart (as of September 17, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects its business fundamentals and choose to remain on the sidelines. Hence, we recommend an "Expensive" rating on the stock at the closing price of USD 44.20, down 4.00% as of September 17, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Clover Health Investments, Corp.

Clover Health Investments, Corp. (NASDAQ: CLOV) is a healthcare technology company, which provides Medicare Advantage (MA) plans to seniors. CLOV leverages its proprietary software Clover Assistant which consolidates patient data from across the health ecosystem and provides primary care physicians (PCPs) with real-time, personalized, data-driven care recommendations at the point of care, which aids in clinical decision-making.

Key Highlights

• The company reported YoY surge of 139.70% in revenue to USD 412.47 million in Q2FY21 (ended June 30, 2021) compared to USD 172.08 million in Q2FY20, owing to a Direct Contracting revenue of USD 215.37 million realized in Q2FY21.
• Net loss for Q2FY21 was USD 317.61 million in contrast to a net income of USD 5.40 million in Q2FY20.
• On September 16, 2021, CLOV partnered with MedArrive to provide in-home COVID-19 vaccinations to its medically-complex and homebound members.
• The company completed the redemption of its outstanding share purchase warrants with a par value of USD 0.0001 per share on September 14, 2021.
• CLOV’s net margin for Q2FY21 was -77.0%, significantly lower than the industry average of 3.5%.
• The Debt/Equity ratio as of Q2FY21 was 0.06x, whereas the peer median stood at 0.64x.
• Negative ROE of 70.9% in Q2FY21 vs. industry median of 3.4%.
• Stock is currently trading below its crucial short-term (50-day) as well as long-term (200-day) SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 6.31 to USD 28.85.
• CLOV’s share price has decreased 30.98% in the past three months.

Technical Price Chart (as of September 17, 2021). Analysis by Kalkine

Conclusion: The company’s performance deteriorated in Q2FY21 compared to the previous comparable period. Given the lackluster fundamentals and lack of visibility into the bottom-line growth, we recommend an “Avoid” rating on the stock at the closing price of USD 8.31, up 2.09% as of September 17, 2021.

*The reference data in this report has been partly sourced from REFINITIV. 

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