The US cinema cashes in shares , taking advantage of inflated equity prices after they pile in by amateur traders. AMC Entertainment said it raised $587.4 million from the sale of 11.55 million shares in an at the market transaction. The average price of the shares was $50.85, the top owner of movie theaters said. The latest stock sale proceeds , added to $658.5 million earlier in the quarter, brings the total equity raise to $1.246 billion during the second quarter ,CEO Adam Aron said. The new funds will be “substantially strengthening and improving AMC’s balance sheet” Aron said, “providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future.
“We would advise investors to proceed with caution and avoid following the herd into hot stocks which are the subject of frenzied speculation. It is a highly risky strategy and people should only dabble at the edges of their portfolio with money they can afford to lose” sais Streeter, an official marketer.
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