Cineplex & AMC: Grammy 2021 Puts the Focus on Entertainment Stocks

3 min read | March 15, 2021 10:31 AM EDT | By Shreya Biswas

Cineplex & AMC: Grammy 2021 Puts the Focus on Entertainment Stocks

Cineplex Inc (TSX:CGX)

After a long and hard year amid the raging lockdowns, Cineplex stocks now seem on a bit of a rebound. Currently trending high among top TSX communication performers, the entertainment stock is up nearly 51 per cent this year. It also records a price-to-book ratio of 37.26 and a debt-to-equity ratio of 78.25, as per TMX.

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The largest chain of movie theaters in Canada reportedly sold off about C$ 250 million worth of its unrated bonds at a lesser yield than earlier offered in February. The transaction comes at a time when most investors are hoping for a turn of events in the light of COVID-19 vaccination campaigns.

Financially, on the other hand, Cineplex is still recuperating from the losses inflicted by the pandemic. In 2020, movie theatre chain saw its annual revenue collapse by 88.2 per cent year-over-year (YoY), while its theatre strength shrunk by a whopping 95.3 per cent.

AMC Entertainment Holdings Inc (NYSE: AMC, AMC: US)

AMC Entertainment stock opened higher on Monday, March 15, following the announcement that Chinese conglomerate Dalian Wanda Group has decided to give up its majority control over the movie theatre chain. The move came after AMC reported a record annual loss of US$ 4.6 billion in 2020.

Source: Pixabay

Stock wise, on the other hand, AMC Entertainment has been propelled into the trending charts by Reddit-based day traders on more than one occasion this year. It has been counted one of the ‘meme stocks’ that enjoyed a frenzied rally with the likes of GameStop stock around late January, February and in March as well.

AMC is currently up nearly 417 per cent year-to-date (YTD). In the last one year, AMC shares shot up by nearly 284 per cent.

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