Shareholders were given 1 APE for every 1 AMC share they held, but investors say they are now holding more of AMC’s equity than common shares.
APE has allowed the company to raise capital from shareholders since it couldn’t issue more common shares based on voting rights.
The equity is down -56% since its debut but has skyrocketed nearly +140% in 2023.
Those in favor of APE see an opportunity to squeeze short sellers attacking the equity.
However, other shareholders say there should have been a vote on the dividend as it created further losses for shareholders.
23.7% of market participants said they hold more AMC shares than they do APE, which means these investors either continued to purchase more AMC shares after the dividend or have sold some APE shares to manage their losses.
32.5% of market participants said they hold an equal amount of both AMC and APE shares, suggesting they have neither bought or sold or may have purchased the same amount equally.
How many AMC shareholders are still buying?
Out of more than 1,000 market participants, 67.5% said they have accumulated more AMC or APE shares as of January of 2023.
Although it’s fair to mention the percentage of AMC shareholders still buying in 2023 could be higher.
Market participants who said they hold an equal amount of both AMC and APE shares could have purchased more of each security equally this new year, although that statistic is unaccounted for.
AMC Entertainment stock is up nearly +40% this year-to-date, a big win for fresh investors holding both stocks in 2023.
What does this case study show us?
AMC stock is known for its incredible +3,000% gains in 2021.
Shareholders continue to hold and buy the stock to recreate the events that took AMC to a record all-time high.
Since the inception of APE, we’ve seen AMC’s volume fall twice its average daily trading volume.
AMC Entertainment had an average intraday volume of 66 million prior to APE, currently at 31 million.
APE has an average daily trading volume of 32 million, which shows us how the creation of the equity has spread the value of investors’ portfolios thin, and the momentum.
AMC’s pipeline has been divided in half with its equity APE, limiting the total trading volume that goes into squeezing short sellers betting against AMC common shares.
In 2021, there was full force in volume going into AMC Entertainment in efforts to trigger a short squeeze.
Volume has now been divided with the introduction of APE.
CEO Adam Aron said shareholders will be able to vote on converting APE back into AMC common shares, several months after the company was able to successfully capitalize on its strategy.
Leave your thoughts on AMC below
Shareholders, leave your thoughts on AMC below.
The rise of the movie industry looks positive.
Fundamentally, there are many great developments happening within the industry itself and the forecast looks positive.
What are your thoughts on converting APE back to AMC, do you support it?
Leave your thoughts below.
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