AMC Theaters Gives Loyalty Customers Chance at Its IPO, But Should You Invest?

Malone said companies benefit when they keep the best interests of customers, employees and shareholders in balance with one another.

"Doing so reduces the cost of attracting and retaining customers and employees, which benefits shareholders handsomely over the long-term. So on its face, this offering by AMC Entertainment would seem to be a step that direction," he said.

Offering his general advice about IPOs, Rao cautioned non-professional investors against jumping into an IPO just because you have the money or opportunity to do so. Rao said he was also skeptical about the future business prospects of movie theaters in general, with the surge in online movie viewing and home entertainment.

"It's like a pricing game," Rao said, as opposed to a business decision based on a company's fundamentals. "People buy in early and cash out. By the time it hits the market, there's not much left -- unless you're a long term investor and you buy and hold it. If you're looking for a quick pop in an IPO, not many people get that advantage," he said.

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