Dilution+R/S = raising capital to force shorts to close
There is too much confusion and disagreement on this sub it boggles my mind. It’s not that complicated folks if you want AMC’s price to go up you need the shorts to….wait for it….stop shorting. How does that happen? Ruin the thesis for them to be short. What is that thesis? 5.3 billion dollars in debt.
Where is AMC now with their 1.6 billion war chest? Only about half a billion now…yeah it’s going down pretty damn fast. In about two to three more quarters AMC will be out of money if AA doesn’t do something.
If you want a squeeze or a MOASS or whatever you call it the first step is actually squeezing the shorts and that happens when AA raises money. If he dilutes APE as is he barely makes money per share but if he does a conversion, then reverse split, and THEN dilutes….he gets to sell shares at 10x the price APE is currently at(THATS NOT EVEN INCLUDING THE ARBITRAGE BETWEEN APE and AMC).
Then multiple the fair value by 10 and AMC will become what? $60 a share minimum? Maybe $70? AA could pay off all of the debt if he chooses to then. THERE IS YOUR SQUEEZE. Shorts they remain short while a debt free, cash flow positive company marches forward, likely with a dividend on the horizon is asking to loose money. So they will close.
Vote yes vote no, I likely won’t change anyone’s mind but these are the facts we face and AA is working to save the company and your investment.
Also this utter nonsense of “I worked hard for my shares and AA thinks he can just take them?” is so ridiculously silly I can’t fathom it. If you have 10 shares at $5 and they become 1 share at $50 you still have a $50 investment at the end of the day. Nothing changes your money is still invested and worth the same thing. Now take a breath and let AA save the company. $AMC Entertainment(AMC.US$ $AMC Preferred Equity Unit(APE.US$
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Mrsjmunoz : Agree but your cost per share increases with a R/S
Hall Dave :
Securities sold not yet purchased
At some point they MUST purchase them back
That should come when there’s no longer a valid short thesis!!! I wholeheartedly concur with you family