Packaging company AMC was one of the rare winners yesterday rallying +1.2% and catching our eye in the process. The stock is fairly cheap trading on an estimated 14.4x valuation for 2022 while it also yields a sustainable 4.2%, however what really caught our eye was how the stock has started to follow the MM mantra for 2022:
- “Buy the dip and sell the pop” but with greater emphasis on the latter for the first time in years.
AMC popped to a fresh high last August and has drifted 14% lower since, not a major move and its valuation should be supportive however we see ourselves as a likely observer over the coming months even while this is a defensive stock that’s likely to outperform if the whole market turns lower – at this stage we aren’t likely to be buyers until closer to the $14 area.
MM is neutral/bearish AMC
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