70+ Answer from Jbitterly on reddit.comDon't have enough Karma on this secondary account so I can't post it on the main sub. But hopefully it reaches some of you.
This graph comes from the CompaniesMarketCap website and as its name suggests, it tracks the market cap of a companies.
Why use this graph instead ot eh price chart? Because it ignores the dillution and the Ape merger noise that makes most sites inaccurate, and gives us a cleaner picture of where we stand (Aside from maybe not being adjusted for inflation)
What's interesting about this graph is the fact that despite the huge price moves, the market cap nas not significantly moved since the original dump during the reverse split. We have been bouncing between 1-1.8 billion since, even with all the nagtive sentiment and doom and gloom.
I suspect is by design. They most likely ran the math before the reverse split and knew it would be safe. The math is really simple:
For AMC to be at risk of delisting and needing another reverse stock split, its price would need to go bellow 1 dollar. That would mean its market cap would need to drop to about 250 million. A market cap that we only momentarily touched during the forced covid lockdowns.
Ok, but what if they keep dilluting it you ask? Even if all of the possible 550 million shares were to be issued today, the price could go another 40 or so percent down, leaving AMC at a value of about 1.8-2.2 per share. Not fun, but still falls short from putting it at the risk of dillution.
In this scenario, for it to be bellow 1 dollar, the market cap would need to drop to bellow 450 or so million. A market cap we have touched a few times in the past, but that was before it became a meme stock. The fact they can't seem to make it budge is probably thanks to the remaining apes who are still holding and if they haven't sold by now, they aren't going anywhere.
So to TL;DR this: so, unless AMC files for bankruptcy, which is not expected to happen anytime soon, the risk of AMC being delisted is close to 0.
I invested 936.00. Before the split at the price its currently listed today. After the split then reverse split i now have 102.00 at the same price i originally paid for it and down to only 21 shares when i had several hundred. I didn't authorize a split nor was i asked.
Also it really pisses me off that they've taken my little bit of money while giving out multi million dollar raises and multi million dollar bonuses on top of that.
Videos
Let’s discuss how the current AMC graph is possible if this is the case.
Shouldn’t the price have went
$40 —-> $400
And not
$40 —-> $4
HOW and WHY?
Since dumb apes are grossly misinterpreting the news, let me explain it to you.
AA is proposing the following:
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Convert APE to AMC at 1 APE = 1 AMC ratio (original split ratio)
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After conversion, reverse split AMC so that 10 of of your AMC become 1 AMC
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Allow the company to dilute AMC directly (instead of via APE currently) to raise cash (search for this in the article: "AMC would have the same ability to issue additional common equity as it currently has to issue additional APE units")
I have been reading AMC's situation and it looks like they're proposing to take their preferred stock and convert that into an AMC share so it would be common stock. They are then wanting to do a reverse stock split, which should increase the stock price from its current trading price of $6.08.
Now, looking into why companies perform a reverse stock split, they do it to increase stock price, so they don't drop below $1 to be delisted AND/OR improve their image by not having their stock price so low.
I feel like neither of the above scenarios applies to AMC since its stock price is at $6.08, no threat to being delisted.
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Why would they do a reverse stock split now versus waiting to see if their stock is in trouble of being delisted?
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The company is switching its partnership from management/investment to pure licensing with Saudi Cinema Company. It looks like they were bleeding from the competition so stopping the bleeding may be good? Thoughts?
Two reasons:
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converting preferred into common is dilutionary so that will lower the price of the common shares.
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they are looking to issue more shares, which is also dilutionary, so will reduce the share price farther.
They know their stock has a cult following and cults are dumb. So they can dilute their shareholders who will probably delude themselves into thinking it's bullish.
It's sleazy but it's business and what business shouldn't take advantage of dumb shareholders.
Saw this news item and wondering a. what are stock splits? b. how do splits actually help a company? i.e. Does it make them more money?
So I got irritated from the back and forth DD and the unfair manipulation I took a 4 month hiatus!Last thing I remember is we had a reverse split and we’re suppose to get more shares . I remember APE going away and not going to be converted into Amc shares per the vote we had. That being where are our dividends I’m down 372 accumulative APEandAMC to only 40 shares or something like that and $2000 down. Every reverse split I’ve been through we got way more shares according to the ratio per share.Is fidelity suppose to give us our reverse shares. I’m confused 😐! Where my money go 😂?! Thanks for the help at least someone comment on this could I give an F about karma just want information thx!!!!
Here is my latest analysis of AMC stock in TalkMarkets:
https://talkmarkets.com/content/services/amc-entertainment-stock-could-double-from-here?post=499635
Let me know what you think
This is not an advice. I am just an ordinary person looking at charts and historical graphs. All I can say is, something huge is brewing at AMC. This is not a joke. Something huge is coming once again. History may repeat once again just like in 2020.
Volumes have been picking up lately by some specific hedge funds. The squeeze is anytime from now on. It will be fast and quick. It is coming soon. Peace. The real apes are here.
While shills try to narrate that AA is the reason the stock price is at an all-time low, is there any reasonable, rational, legal explanation for why a reverse split could cause a company to lose 90% of its market cap. Because trading ten $1 bills for a $10 bill means you should really only be worth 1$.
Makes sense, right?
Right???
Seems like all the proof needed that the last 7 months have just been a bunch of nonsense suppression to prevent the world largest theater chain from raising capital and succeeding.
The price is absolutely, most emphatically fake beyond any fair market explanation.
Edit : spelling
I'm still sorta smooth brained! I think it's the reverse split I'm talking about and if not please educate me. But I'm looking to buy AMC stock but APE is cheaper obviously. If I were to buy APE when they are converted to AMC would that mean I would get that amount of AMC in total? So say I was to buy 40 APE would that 40 more AMC shares when they are converted?
I have a question. Been here just past my 2 year cake day!! If the squeeze happens before the split we should be buying amc?! If not ape is a deal!! Biggest question is if the upcoming conversion and r/s split causes. The run. Possibly not MOASS but run up to 100$-300-500 like gme did. Is this what they are trying to sell us on?
Was just looking for a similar question. From what I’ve seen it’s literally as simple as they combine and divide by ten, with a cash payment settling partial shares. I’m also wrinkleless so I could be stupid but from what I understand; if I have 100 AMC and 200 APE its an even 30 shares after split since they’re 1:1.
Seems clear that the higher value is in buying APE until split but I’m regarded and this is not financial advice.
Reverse Stock Splits When a company completes a reverse stock split, each outstanding share of the company is converted into a fraction of a share. For example, if a company declares a one for ten reverse stock split, every ten shares that you own will be converted into a single share. If you owned 10,000 shares of the company before the reverse stock split, you will own a total of 1,000 shares after the reverse stock split.
A company may declare a reverse stock split in an effort to increase the trading price of its shares – for example, when it believes the trading price is too low to attract investors to purchase shares, or in an attempt to regain compliance with minimum bid price requirements of an exchange on which its shares trade. In some reverse stock splits, small shareholders are "cashed out" (receiving a proportionate amount of cash in lieu of partial shares) so that they no longer own the company’s shares. Investors may lose money as a result of fluctuations in trading prices following reverse stock splits.
Although the SEC has authority over a broad range of corporate activity, state corporate law and a company’s articles of incorporation and by-laws generally govern the company’s ability to declare a reverse stock split and whether shareholder approval is required.
If a company is required to file reports with the SEC, it may notify its shareholders of a reverse stock split on Forms 8-K, 10-Q or 10-K. Depending on the particular facts, companies pursuing a reverse stock split may also be required to file a proxy statement on Schedule 14A, if shareholder approval is required, or a Schedule 13E-3, if the reverse stock split will result in the company “going private.” Corporate filings can be found on EDGAR.”
This was copy and pasted not my words hopefully this helps some apes who don't understand exactly what it is
Feel like people get the gist of the conversion and 1:10 reverse split and AMC desire to sell shares after the reverse split to raise capital to pay off debt (ideally). With hopes doing all of this will cause the mighty MOASS to kick off.
What is causing people to be upset is the need to have ones share totals reduced in order to cause the MOASS (potentially). Think that’s the main issue with all of this. People have spent a lot of their money to accumulate shares and to have them be reduced before MOASS kicks off is umm annoying to say the least. Yes, I understand the value is the same even if the share number is reduced. Totally get that but that’s not the point people are upset about. People are upset with the loss of flexibility.
See people bought and bought and bought and held as many shares as possible in order to give themselves more flexibility or a buffer to utilize when the MOASS kicked off. The person with a 1000 shares planned on holding to the moon! But understood if the moon was not as “moonish” they had accumulated enough shares to sell and walk away a happy camper. That safety net will no longer be there after the 1:10 reverse split.
Instead of having 1000 shares to hold and sell during the MOASS, the person will only have 100 shares to sell during the MOASS. That’s not as much flexibility. Furthermore, people were already aiming for high price targets like 100k, 500k, etc. But now the response is “just hold to 1 million or 5 million, it’s the same thing.” This is a hilarious response when you truly think about it. Idk 1000x100,000 to get to a 100 million sounds more obtainable than 100x1,000,000 to get to 100 million.
I was just using random numbers in the example of above. But let’s just say MOASS is the freaking MOASS. It’s awesome! All the numbers are on the table. The number you have wanted is there. You see it!!! You’re like hell yeah! But instead of having the full 1000 shares to sell at 500k you only have 100 shares to sell at 500k. That’s a huge difference. Again, it’s just and example and I’m only trying to show the mindset of what is occurring here. Let’s say MOASS only goes to 10k. Selling 1000 shares at 10k is much different than selling 100 shares at 10k.
The other thing that’s lame in all of this is one’s average cost per share will go up as well. So if you have $5 average cost, your new average cost will become ~$50 as well (I’ve been wanting an answer for that and so a few people mentioned it would, if that’s not the case thanks for letting me know otherwise haha). So like that initial AMC price boost after the reverse split is pretty much a nothing burger for people who have higher average costs. Cause if AMC sells immediately, like they want to in order to raise capital, that new price won’t last long and more importantly HFs will probably short cause it would actually make sense to do so because they know AMC is going to sell as soon as they can. Haha shorting AMC would actually make sense that time. I don’t think the price will got all the way back to $5 though. It’ll probably be round ~$15 since AMC has done a lot of really good stuff over the past two years.
So what is all this nonsense I’m saying. People have a right to be upset. I hope all of this works out in all APES favor. I kind of just see two scenarios at this point.
Scenario 1: all this conversion and 1:10 reverse split and AMC selling to payoff debt actually works like people want and the MOASS finally happens. Please 🙏 haha please give me scenario 1 😅. Scenario 2: all this occurs and MOASS doesn’t happen like planned. But people are now left with higher average cost with less shares in the company at prices in the ~$15 range.
I want the MOASS to happen. I repeat I want the MOASS to happen. I just have been trying to get information to better understand the outcomes. I might be completely wrong. N that’s okay. Again, I repeat I want the MOASS to happen.
Oh we know what a RSS entails but what is still a mystery is will fucken SHFs be forced to cover and what APE n AMC prices will be before the RSS and will these short fuckos continue to short the hell out of AMC after the split?
Please correct me if I'm wrong, but if one still holds APE then the chances are your APE holdings have a lower DCA than your AMC shares (unless you got in super early and just held).
Despite being a 5:1 or 10:1 Reverse Stock Split, wouldn't the simple act of converting your APE units into AMC common stock help lower the DCA of one's AMC portfolio? Depending on how many shares/units one has, of course.
Maybe this has been talked about already and I've missed it, but largely I've just been seeing that flow of T+90 posts alongside "is this good or bad for AMC", so if I'm beating a dead horse then please extend my apologies to its foal.
I think generally (IMO) the plan is to convert APE to AMC 1:1, then reverse split 10:1 bringing the price from $4-$5 to $40-$50/share. At which point AMC would issue stock in the amount of 100m-150m to cover the cost of debts. Once done, AMC would be debt free.
If AMC is debt free, the short thesis is dead in the water because a business with no debt cannot go bankrupt.
The downside is that if you had 200 shares, you would have 20 shares as it began to MOASS.
The only remedy would be if AA split shares when it spiked to $1000/share. At which point a 1:10 split would return investors to where they were, plus be up $100/share, and perhaps that would be good.
AA has one priority: Keep AMC afloat. Shareholders have a lot of control, but what do you do when you have short sellers attacking you, and then a fanatic shareholder base that is focused on a squeeze and not business fundamentals?
Is the play simply, "If shorts have failed to deliver T+90, and the stock goes 1:1 to AMC... Then a large chunk of AMC is FTD... Which means...??"
I think it is simple. AA is going to issue shares to raise capital to pay down debt. Once debt free, AMC is in the clear... We as shareholders just lose value at the expense of better fundamentals. Hopefully those better fundamentals lead to MOASS...
AMC was at $19 then APE came in to the picture and decimated our stock value to almost $6.00 combined... what a checkmate! I'm chocking on that just thinking about it.. I'm just waiting on APE to pop. See you all after the dust settles... hopefully with good news.
Common stock is trading at ~$4.92 per share, with a market capitalization of ~$2.55 billion, while the preferred stock was trading at $1.47 per share, with a market capitalization of ~$762 million. Following the conversion, the total number of common shares outstanding will increase to 1,280,104,754 shares. The new common shares will be valued equally with the existing common shares (whether converted or not), and the preferred shares will be converted on a one-to-one basis.
In addition to the conversion, the company has also announced a 10 for 1 reverse stock split, which is often seen as a last-ditch effort to boost a struggling stock.
Furthermore, AMC's preferred stock (APE) gives the company the ability to dilute, and the company already completed an offering of 43 million shares. This could further depress the stock price, as it will increase the total number of shares outstanding, potentially diluting the value of existing shares.
Today, someone placed a $1 million dollar bet on puts with a strike price of $2, as well as another $1 millon+ on puts for the $3 strike on the same date.
After the reverse split, these contracts will turn into $20 and $30 strike prices. This gambler expects amc to be below $20 and given all this negative shit that is about to happen, I think he is right.
It gets complicated with the conversion, but I think the stock will be trading around $12 after all of these things occur.
Going in on $2p. God speed. AMC is fucked. Fuck the APES and Adam Aaron. Idiots.
I remember selling at $49.50 a share after I bought at $2.75 a share. Everyone kept downvoting me and saying hold. Those were the days
It's clear that this individual is not as intelligent or rich as I am, otherwise they would know that AMC is a great company and has a bright future. I'm not worried about the reverse split or the increased number of shares outstanding, because I know that AMC will continue to be a strong company. As for the gambler who expects AMC to be below $20, they are obviously wrong and will lose their money.
Simple
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10:1 reverse stock split with make the price go from 4 to $40, but your share count will get reduced by the factor of 10. So nothing is changing as far as you are concerned and more dilution will happen which is bad for you personally but good for company
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Your cost basis will increase by a factor of 10. So if you bought at $72->$720 or @ 30$->$300. That means stock going to $40 means shut off your cost basis is $300 or $700. And with dilution it will (share price) go down even more.
Only way this works is essentially, reverse Stock split drives price to $40. Mini squeeze pushes it to 60-70$?? And you exit. As it’s only going down from there in that case. And No one is taking/asking about that. I really need to understand how that works. But instead all of a sudden there is a solid push to vote “yes“. This make me even more sus 🤷♂️
Source for reverse stock split cost basis:
https://www.wrapmanager.com/wealth-management-blog/how-stock-splits-impact-cost-basis-of-shares?hs_amp=true
So my 1000 shares of amc and will be cut down to 200 shares amc again. Now to break even I need amc to be around 150$ a share. Nobody’s gonna be buying at these prices which is why GME did their split.
And the biggest issue is we have to believe they will be forced to close short positions and be unable to short the stock anymore. They’ve proved time and again they will find a way. Now I just have way less shares that they d shorted down to the same price as when I had ten times as many?? Semi smooth brain here.
You do realize the run from 5 to 72 was directly caused by the 400m AA diluted into the stock. Once he stopped diluting the price fell. Do better research.