2 reasons AMC will have a hard time bouncing back

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of AMC Entertainment Holdings (NYSE: AMC) have been on a wild ride recently, as the theater chain’s stock is caught up in the buying frenzy induced by online discussions on a Reddit forum. Despite this, the fundamental outlook for the company hasn’t changed all that much in the past few weeks — and certainly not enough to justify the frenzied buying.

The substantial increase in the stock price in recent days has allowed management the option to offer more shares to the public and raise much-needed capital. That financial lifeline will be crucial for AMC, which is burning through available cash at a pace of $130…