American Multi-Chain Entertainment Holdings Inc. (called AMC for short) is an entertainment conglomerate. Founded in 1920, AMC controls the largest share of the movie theatre market in the world. It is headquartered in Leawood, Kansas. In this guide, we will show you How to Buy AMC shares in South Africa with 0% commission and show you why AMC shares are a must-buy today.
If you are in a hurry, you can quickly get your hands on some AMC shares by following the steps below:
Step 1: Open an account with Capital.com – Go to the official website of Capital.com and click on ‘Trade Now’ to create a free account.
Step 2: Upload ID – Verify your identity by uploading a copy of your government-issued ID.
Step 3: Make Deposit – Fund your account with a minimum amount of $20 (about 286.96 ZAR) to get started. You can pay through credit/debit cards, and bank wire transfers.
Step 4: Buy AMC Shares – Click on the search bar and type in ‘AMC.’ Select the first result that comes up and input the amount you want to invest. Click on ‘Open Trade’ to confirm your order.
Step 1: Choose A Stock Broker
To buy AMC shares, you have to invest through a trusted broker that offers exposure to US stocks. In your search, you will likely come across a number of brokers who offer these services. However, choosing one might be difficult. In the sections below, you will find a selection of the best stock brokers that allow you to buy AMC shares in South Africa
1. Capital.com – Overall Best Broker To Buy AMC Shares In South Africa
Capital.com is our overall best broker to buy AMC shares in South Africa. The platform is a regulated stock broker with operational licenses in the UK, Cyprus, and Belarus. Capital.com offers exposure to over 3,000 global shares and other financial instruments for both retail and institutional investors.
A standout feature of Capital.com is its zero-commission trades for CFDs. The regulated broker charges low spreads for trading AMC shares. To start using the platform, you need to make a minimum deposit of just $20 (about 286.96 ZAR). Deposits on Capital.com can be made via debit cards and bank transfers.
Capital.com provides a rich selection of investment educational materials that cover webinars, guides, and videos. The broker is regulated by South Africa’s FSCA and CySEC. The overall trading experience is great as users can access rich features like trading tools, watchlists, news feeds, and get price alerts. It also integrates with TradingView making it easy for users to create custom indicators before opening a position.
- Trade AMC shares commission-free
- Free demo account
- Suitable for both beginners and pro traders
- Zero inactivity fees
- No deposit or withdrawal fees
- Integrates with TradingView
- Trade 3,000+ global shares
- Low spreads
- CFD trades only
76.25% of retail investor accounts lose money when trading CFDs with this provider.
2. AvaTrade – Trade AMC Shares With 0% Commission
Not satisfied with Capital.com, AvaTrade is a much suitable alternative for trading AMC shares. Just like Capital.com, AvaTrade offers zero-commission trades for global shares. Unlike Capital.com, it only offers exposure to 600 stocks globally.
AvaTrade, which is a member of the Ava Group, is a regulated broker with the Financial Sector Conduct Authority (FSCA). Avatrade is authorized and regulated in six different jurisdictions – including South Africa. However, what makes AvaTrade stand out from the crowd is its social trading capability.
Through its iOS and Android offering, the social trading app lets users mimic the trading decisions of more experienced traders. It also enables users to learn about the latest news, moves, and announcements in the market. AvaTrade requires a minimum deposit of 1,433.17 ZAR to open a position. You can fund your account through multiple channels like credit cards, debit cards, or bank transfers. AvaTrade offers users three trading platform options, including its proprietary platform AvaTrade WebTrader and AvaOptions, and the popular MetaTrader 4 and 5 (MT 4 & 5).
- Suitable for experienced traders
- Trade AMC shares commission-free
- 24/5 customer support
- Multiple payment channels
- Multiple trading platform
- Social trading
- High inactivity fee
- Few educational resources
Your capital is at risk.
AMC is the largest movie theatre chain in the world and was founded in 1920 by the Durwood brothers. AMC is situated in suburban Leawood, Kansas City and has international locations in Europe and much of North America. Before we show you how you can buy AMC shares commission-free, we will cover the company’s early years and its financial track record. We will also look at investors’ returns and the best broker you can buy AMC shares through.
What is AMC?
AMC is an abbreviation for the American Multi-Cinema Entertainment Holdings Incorporated. The entertainment conglomerate was founded in 1920 by itinerant actors Maurice, Edward, and Barney Durwood. It's one of the largest movie theatre chains in the world.
AMC’s popularity commenced after the son of Edward Durwood, Stanley brought about the idea of drive-in theatres and built them in St. Joseph, Jefferson, and Leavenworth in 1945. Two years later, the theatre company went on a buying spree adding the likes of Liberty Theatre in downtown Kansas City which they renamed the Roxy.
Others included The Empire Theatre, Capri Theatre, Midland Theatre, and the Paramount Theatre. However, the company only became a major theatre company after Stanley took the reins of power. In 1963, AMC launched two theatres side-by-side called the Parkway Twin theatre. This was the first attempt by AMC in building a multiplex viewing center in the country.
Following the remarkable success of the Parkway Twin theatre, AMC launched a triplex, a four-screen theatre, and a six-screen theatre. This helped the Leawood-based company to address a crucial issue in operational costs. AMC was able to generate more revenue by adding additional screens without employing more staff. This simultaneous viewing experience allowed the company to show multiple film choices at one location, thereby attracting more customers.
This continued innovation has cemented AMC as the top premier entertainment company with the company occupying the top position in global movie exhibitions. As of March 2021, AMC owns 950 theatres and 10,500 screens spread across much of the US, Europe, and the world. This was after its acquisition of Odeon Cinemas, UCI Cinemas, and Carmike Cinemas in 2016. Aside from movie exhibitions, AMC caters to business conferences in its viewing centers where companies can use its large screens for presentations.
Following its initial public offering (IPO) in 2013, AMC became tradable on the New York Stock Exchange (NYSE). It has also attracted major investments from China-based Dalian Wanda Group and private equity firm Silver Lake Partners. However, Dalian Wanda Group has since sold off its majority share in the company leaving only 10,000 shares or 0.002% of its outstanding stock in 2021. This was due to growing Chinese regulations of private acquisitions outside its shores.
Silver Lake Partners has also converted its $600 million debt into equity after making $113 million in profits. Even though the company has seen its revenue sources dry up following restrictions of public gatherings occasioned by the global pandemic, AMC has not shuttered its doors. And this is gradually paying off. The entertainment company’s coffers are gradually swelling again as governments of the world ease restrictions following the rollout of covid-19 vaccines.
In a press release, AMC said that over 2 million movie-lovers in the US hit its theatres between June 24 and 27 following the release of the Fast & Furious Franchise F9: The Fast Saga. An additional 500,000 viewers visited its international theatres in Europe and the Middle East. AMC, which has been in the storm of a Reddit-inspired buyer movement earlier in the year, said it made more than $70 million in the opening weekend of the Fast & Furious latest release in the US alone. Sounding optimistic, CEO and President Adam Aron said that the combination of widespread vaccination and the release of box office movies were major contributions.
AMC Share Price
AMC, much like other theatre chains like Regal and Cinemark Theatres, have seen their share price suffer following the global pandemic. In fact, it saw its share price drop 22% during the first three months after the March 2020 close down. Eight months into the year, this shot up to 90%. This saw the AMC management state that the company may be forced to close down the business at the height of the global pandemic.
However, the company has come a long way ever since then. When it initially launched on NYSE, AMC traded at approximately $18 per share. Meanwhile, in the last eight years, AMC shares had grown exponentially and currently trade at $58.89. This puts its average annual return at 15.64% in the ten-year price chart. This means that if you invested 14, 344.77 ZAR in AMC during its IPO in 2013, you would have made 61,400.29 ZAR. This will put your return on investment (ROI) at 32.764% for the ten-year period.
AMC Share Dividends
AMC has suspended its dividends payment following the global pandemic. Prior to this, the entertainment company paid an average of 5-6% till 2020. This put its annualized dividend at $0.12 with a dividend yield of 0.2%.
Should I Buy AMC Shares?
Should you buy AMC shares? We believe it would improve your investment portfolio. Here are a few reasons:
Lockdown Restrictions Are Easing
AMC saw most of its business grind to a halt during the March 2020 worldwide lockdown. With the company struggling to stay in business, AMC furloughed 600 corporate employees in a bid to cut down on expenses and stay afloat. However, 2021 started with a significant jump in its share price. Following a social media buying frenzy prompted by the subreddit WallStreetBets, AMC came into focus. Even though it later lost 40% of its gains and traded at $8.01, the struggling company had briefly trodden water.
Now that the pandemic is getting contained, AMC is set for a stellar second half of the year with its global theatre locations opening up to movie-thirsty viewers.
Bankruptcy Fears Allayed With Fresh Financing
With the pandemic biting hard at revenue, the AMC board was forced to state that the company will not make it through 2021. This saw the AMC stock trade below the $5 mark for much of the beginning of the year. However, a new credit line from European investors served as a buoy for the cinema giant. According to a company release, AMC received $917 million of fresh investment capital in mid-December 2020. Commenting on the development, CEO Adam Aron said that this officially ends the talk about a possible bankruptcy filing as this credit line would help the company through the dark coronavirus-impacted winter.
Step 3: Open An Account And Deposit Funds
We've covered everything that needs to be considered when thinking about how to buy AMC shares. If you want to proceed with an investment right now - the next step is to open an account with your chosen share trading platform. To show you how easy this part of the process is - we are going to walk you through the required steps with Capital.com.
Step 1: Open a Capital.com Account
Visit the Capital.com website, click on the 'Trade Now' button, and follow the on-screen instructions by entering your personal information. This will include basic details like your first and last name, home address, date of birth, and contact details.
Step 2: Verify your Account
As with most regulated companies, Capital.com is legally required to ask for a copy of your government-issued ID. It's part of the KYC protocol the company complies with.
Step 3: Fund your Account
Capital.com has a minimum deposit of $20. You can choose from a variety of payment methods to benefit from this low minimum - including a debit/credit card or e-wallet. If you wish to transfer funds from your South African bank account, this is also an option but the minimum increases to $250.
Step 4: Buy AMC Shares
Once you are through with depositing, click on the search bar and type in ‘AMC.’ You will be shown ‘AMC CFD,’ click on ‘Buy’ to get started.
On the order page that will pop out, input how much you want to invest in AMC shares in US dollars. Also, remember to put a stop-loss order and take-profit level to minimize your exposure to the underlying asset. When you are satisfied, click on ‘Open Trade’ to buy AMC shares with Capital.com.
AMC struggled during the lockdown that characterized most of 2020. However, with global vaccination programs ongoing and blockbuster movies rolling out in the summer, the struggling theatre-exhibition company has seen new life breathed into its business. Even though the company's earnings dropped by 90% in 2020, AMC is gradually getting back on its feet. In a recent airing of the Fast & Furious Franchise F9: The Fast Saga, AMC reported over 2.5 million worldwide with the US market, snapping up the lion share with 2 million viewers. This brought in over $70 million in the opening weekend of the box office movie. AMC has also partnered with Canadian-based Shaftesbury to expand its content slate across different genres and create more opportunities for Canadian creators. We believe AMC's stock is a buy for savvy investors.
AMC is rebounding from a year-long decline and if anything is to go by from its recent good fortune, the cinema giant may recommence paying dividends to its shareholders.
Its share price is a good reflection of the shifting tides with the AMC rising 2,700% year-to-date. Even though its financial record has been in tatters, AMC can clearly see a future where it continues to satisfy millions of movie-lovers all over the world. If you are ready to buy AMC shares, you can get started by clicking the link below to trade on Capital.com commission-free.
76.25% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.