Defiance ETFs CIO Predicts Blockbuster Summer For Movie Theaters

This summer will likely be a blockbuster one for movie releases and customers returning to theaters, Defiance ETFs CIO Sylvia Jablonski said Tuesday on CNBC's "Squawk Box."

What Happened: AMC Entertainment Holdings Inc AMC announced Tuesday that it entered into an agreement to raise $230.5 million in cash by selling equity to Mudrick Capital for 8.5 million shares of AMC Entertainment stock at approximately $27.12 per share.

Related Link: AMC Entertainment Holdings, Inc. Raises $230.5 Million of New Equity From Mudrick Capital

The recent move in the stock can be attributed to retail traders looking for potential short squeeze opportunities, Jablonski said, adding that the price of AMC Entertainment's stock has been pushed higher on momentum. 

The attendance spike is not going to be enough to rationalize the recent valuation increase, but it will probably save the company from bankruptcy, she told CNBC.

See also: How to Buy AMC Stock

AMC Price Action: AMC Entertainment traded as high as $36.72 and as low as $1.91 over a 52-week period. 

At last check Tuesday, the stock was up 21.09% premarket at $31.63. 

Photo by Keith C from Flickr.