Should I buy AMC stock today at $59?
As reopening trades go, I think AMC (NYSE: AMC) stock is one of the most exciting. Although that doesnt mean its the best. Shares in the company have surged in value over the past six months as investors on Reddit and elsewhere have rushed to buy. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... This has created an interesting situation. The worlds largest cinema operator has been able to ride this enthusiasm to issue more shares, raising $1.6bn in new capital. As a result, the risk profile of AMC stock has drastically changed. The company has increased its cash balance and reduced borrowing, even though its been operating under severe pandemic restrictions. Raising cash  In theory, if the company continues to issue new shares, it could eliminate its debt. This would reduce interest costs to zero and could make the enterprise profitable. Unfortunately, it doesnt look as if this is going to happen. In April, management put forward a proposal to issue an additional 500m shares but had to backtrack on this. Still, there are plans in the works to issue a further 25m shares, providing a potential cash infusion of $1.4bn. If this plan comes to fruition, Id buy AMC stock as a speculative investment and recovery play. Compared to its UK peer, Cineworld, the company seems to have a good deal more support from its investors and more flexibility in raising additional capital. Thats not to say this business is out of the woods just yet. Revenues are likely to remain depressed for some time. Whats more, it cant go on issuing new stock forever. For every new share thats issued, it reduces existing shareholders claims on the business. Therefore, in theory, each share is then worth less. If the company continues to issue new shares, the value of AMC stock may decline. AMC stock bucks the trend  Still, this is just theory. Its impossible to predict the direction of share prices. The company has bucked the trend and defied critics, so far, and that could continue. This is why Id buy AMC stock. The company has continued to prove its critics wrong and made the most of a bad situation over the past 12 months. As the global economy continues to recover from the coronavirus pandemic, the corporations revenues should increase. And as revenues grow, the companys improving fundamentals may help drive the share price higher. Of course, if the recovery starts to stutter, the opposite could happen. This is probably the most considerable risk and challenge hanging over the enterprise right now, and its the reason why I rate the business as a speculative buy. AMC stock has potential, but its not suitable for the faint-hearted. The groups recovery could fall apart at a moments notice.