AMC Entertainment Holdings Inc. (AMC)

The largest movie theatre chain in the world. He still thinks it is oversold and that the story of people not going to theatres any more is overdone. If you have the right content, people will go to the theatres. Last year there were fewer feature films released and those that were released did not resonate. He thinks content will improve.

This is the contrarian pick. It is down 60% year to date because of a poor box office in Q2/Q3. CGX-T is not down as much as this one. AMC-N plans to charge more for some tickets and to sell movie merchandise in theatres. They plan to pay down debt with a European IPO. (Analysts’ target: $19.00).

He would have liked to have seen this hold its low at the end of 2016, but it didn’t. A lot of indicators show this as oversold. Consumer cyclicals don’t show a strong relative performance. Consumer defences, consumer staples and consumer cyclicals are not showing as strong as some of the financials, energy, etc.

This is the turnaround pick. It was hit very hard this year because of a weak 2^nd and 3^rd quarter box office. Theaters are not dead There were a lot less film releases this year. There are going to be more movies released next year. (Analysts’ target: $25.00).

(Market Call Minute) Avoid theatre operators because they are getting pushed out because people will download and watch at home.