Adam Aron Speaks on AMC’s New Reverse Stock Split

Market News Daily - Adam Aron Speaks on AMC's New Reverse Stock Split.
Market News Daily – Adam Aron Speaks on AMC’s New Reverse Stock Split.

Adam Aron is addressing shareholders on AMC Entertainment’s (NYSE:AMC) upcoming reverse stock split, which has been temporarily denied by a judge in court.

“We could be seeing an indication that the judge wanted the timeline to more fully run its course vs. rushing the conversion process”, said Wall Street analyst Eric Wold.

An AMC reverse stock split seems to still very well be on its way due to more than 87% of shareholders approving the proposal; however, its process is momentarily on hold.

Despite majority of shareholders voting ‘yes’ for a reverse stock split and APE conversion, there are investors who have been vocal about their concerns with the proposals.

But CEO Adam Aron says investors have absolutely nothing to worry about.

Today we’re breaking down what the CEO is saying about AMC’s reverse stock split and what it could mean for shareholders.

Adam Aron on Reverse Stock Split (Update)

AMC CEO Adam Aron reads your comments and concerns on social media.

On Sunday, the CEO made the following statement:

“Some misunderstand the 1-for-10 reverse stock split, approved by 87% of March 14 votes, saying we are “stealing 90%” of your shares. You forget that the share price rises 10-fold at that time. EXACTLY the same as trading ten $1 bills for one $10 bill. Either way, you have $10.”

Investors are questioning why the reverse stock split in the first place if ‘nothing’ truly changes.

“In your comments, some fear that after a RS, short pressure could cause price to go back down. But you neglect that it is EVERY bit as easy to short a stock priced at $3.00 as it is on a stock priced at $30. A RS itself has NOTHING to do with any subsequent prices afterwards,” said the CEO on Twitter.

Here are just a few of the things that investors have pointed out in regard to the RS.

What Shareholders Should Know

➡️ While the CEO is right that the value (on paper) won’t change, market conditions today have been incredibly biased towards the downside and have been ever since AMC almost filed for bankruptcy in 2021 — we’ve seen AMC’s share price plummet from insiders selling, as well as institutions heavily shorting the stock.

➡️ On the other hand, AMC’s share price will now have to rise 10 times more from where it trades at the time of the reverse stock split in order for shareholders to break even or become profitable again.

➡️ AMC is currently trading at $5.05. Say an investor breaks even at $12, $22, $33, or $44 per share pre-RS. In a reverse stock split, AMC’s price would be at $50.50, but investors would have 10 times less shares which means the value of their portfolio would be the same. Those who would have broken even at $12, $22, $33, or $44 (ex.) would now break even at $120, $220, $330, and $440 per share with a reverse stock split.

➡️ For AMC Entertainment to trade at these numbers, big liquidity that can override heavy dark pool volume must come into the market first, much larger than the volume we saw in 2021 when shares rose to an all-time high of $72 per share.

Can AMC reach $120-$440 or more?

Absolutely, but the question is why hasn’t it prior to this reverse stock split?

The answer remains the same post a RS — hedge funds and market makers have been suppressing the stock’s true demand and shares from rising.

Liquidity in today’s market has also dropped drastically compared to the heights of the market in 2021.

Ultimately, it’s going to be big buying pressure like we saw in 2021 to trigger price action and short sellers to close.

Final Thoughts on Adam Aron’s Take on AMC’s Reverse Stock Split

An AMC reverse stock split is going to help the company tremendously!

The company will be able to raise a lot of capital very quickly and use it to pay down its debt or towards other innovative initiatives.

However, a risk AMC CEO Adam Aron is not discussing, which is very important to shareholders, is how attractive the stock may or may not be post a reverse stock split.

Many investors purchased the stock at $40, $50, $60, and $70 per share, expecting shares to continue rising.

Will shareholders buy a $50 share while having 10x less shares in efforts to drive the stock up again?

Or is it more attractive to buy shares at a lower price with bigger volume due to stocks being much more affordable?

Because if there’s one thing we learned from 2021 it’s that big buying pressure is what triggered shares to rise, ultimately squeezing a percentage of short sellers from their positions.

AMC’s reverse stock split has already been approved, but I’m curious to understand your thoughts on the CEOs comments – leave a comment down below.

Related: AMC Gets Back on The Threshold Securities List

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  1. Betty Michener

    I received mine, and I voted NO.
    But, it doesn’t matter.
    AA used us to make himself more $
    That he won’t be able to spend in his lifetime.
    He makes me sick.

  2. Ev

    I think some people are thinking Adam Aron may secretly be an agent of that corruption, based on some of his actions that seem to sabotage our efforts

  3. Mike Berg (@MikeBer91950461)

    Easy, there is a lot more room between $30-0 than there is from $3-0, shorts make money on the way down. Also, if it makes sense for the shorts to take the price to zero, don’t you think they would have already done it? We didn’t vote yes, AA made a deal with Antara to vote yes and all the non votes from Computer Share were counted as yes. Only 30% of household investors voted period. Institutions, Antara, AA and the gang, arbitrage c*&^ s9846ers, and CS nonvotes were your yes votes. Now, investors voted no before and they voted no this time too but, had the vote stolen from them.

  4. Brian

    Adam Aron is misleading what many people are concerned about. People are not saying that 90% of our shares are going to be stolen (and AA knows this), people are concerned that 90% of the rocket fuel for the short squeeze is being stolen by converting every 10 naked shorted shares into 1. Stop lieing Adam Aron. Truth.

  5. Trent

    The problem with AA’s story is that he really doesn’t offer a good reason the RS is truly good for his investors. Here’s what will happen if he moves forward on the RS. The stock will be shorted back down to $5.50 a share because not only can hedge funds dark pool as much as they want but the RS comes with the issuance of 500 million new shares allowing shorts to cover much of their artificial positions. Investors will be forced to bail at major losses and AMC will be forced into bankruptcy. I have to wonder if bankruptcy is what AA wanted all along and investors saving AMC was not planned on happening. Also consider if AMC is trying to get debts down why are they buying up bankrupt theaters. Even Hillcroft mining that AA pushed is planning a RS now. The sad truth is investors are being used and not paid back these days, so to believe a millionaire cares about you is nonsense. The idea this RS gets rid of corruption and is good for anyone but the owners at the top is just not true. The track record of AA has proven that he already dumped millions of stocks last time AMC hit $70.. As AA fattens his pockets off young people already struggling my stomach turns because young investors make up only aboutb18 percent of stockholders in comparison to AA and executives at AMC.

  6. Fireball RW

    @ Edward A Mawusi Let me ask you a question. If you could short AMC at its current price lets say $5.00 you could make how much money ? Compared to shorting it after a 10 to 1 split meaning the price would be $50.00 , how much could you make? Big difference Hopefully you understand now.

  7. Fireball RW

    @ Chris a new Cusip ID unfortunately I found outdoes not force shorts to close. I think Frank will verify what I am saying is true. I wish it did. but it does not.
    Why would there be more buyers if the reverse split goes through . The price would be higher 10 x what it is now when we all know it will be shorted down to maybe less than $5.00 a share again . You have lost 90% of your stock and the price is right here again. This is a screw job. Go look at WISA Stock , Also COSM both did rverse splits went up the first day and then crashed down , guess what 95% of the investers got their new shares late meaning it already went back down. Expect that to happen with AMC

  8. Michael Onstad

    I’ve been saying all a long that an rs is the end for retail. The best thing to do is to force record profits this year and go to the movies 2 or 3 times a month. They can’t short the movies and then this can end sooner rather than later.

  9. Chris

    Isn’t the whole point to force the shorts to close, since the new AMC shares will have a new cusip id? Also, shouldn’t the massive buying pressure and resulting price increase create huge buying interest in APE shares for the arbitrage play?

  10. Drew

    You should be comparing percentages vs dollar amount. 5% gain on 500 dollars worth of shares is the same no matter how many shares it is divided into. Whether it’s 10 shares totaling 500 or 100 shares totaling 500, 5 percent gain is the same amount.

  11. Fireball RW

    No Mark you don’t get it. If I buy $500.00 of AMC at $5.00 I get 100 shares and it goes up $1.00, I made $100.00 dollars, Lets try it your way if I buy $500.00 of AMC and its $50.00
    I get 10 shares and if it goes up $1.00 what did I make ? $10.00
    Lets not forget AMC at 10 x its price is a hell of a lot more attractive to short then it is now. That is exactly what will happen they will short it back to $5.00 and you lost 90% of your shares. Adam Aron is a Scum Bag to his own share holders. UNREAL .
    I pray the Judge says no , Adam Aron deserves a no from the Judge. This man as Mat said has always stopped AMC from running. WTF we have to fight our own CEO after saving his ass. UNREAL !


    Hey genius! What do you say to the investors that paid $55 per share and helped to save AMC from bankruptcy? Adam Aron is selfish and a lying scumbag.

  13. Mike Berg (@MikeBer91950461)

    How about the gorilla in the room, which is dilution and how it affects investors? After rs IF it happens, all AA has to do for investors to lose the float is to sell 150 million into the wrong hands, of the 400 million stolen shares. Also, that 150 million equates to a 30% loss of value that investors will NEVER get back. People need to wake the fuck up.

  14. T.

    Reverse stock split has not worked for me in past. They end up at the same price as before same people stuffing their pockets and doing nothing. Shorts will just take any money raised anyway. Why invest?

  15. Edward A Mawusi

    Well the question here is, if they can short this stock sooooo easily, why can’t they short it to zero now? Does the liquidity magically appear when the R/S goes through? Does liquidity all of a sudden show up so they can short the stock down to current levels again? If that is the case then they should have already been able to short the stock down to $0 already…NO PROBLEM. That’s the point he is making and the point everyone is missing. People also want to forget that had we said YES to the original request for more shares in 2021 perhaps we never would have seen the creation of APE shares into the market in the first place. Furthermore everyone is more mad at AA then they are the organizations that allow the corruption and manipulation to continue. Make that make sense.


    What’s stopping AA from giving them all the shares they need to close

  17. Mat

    They shorted it down from 72. What Adam Aaron is doing, he is doing for his company not the share holders. The problem with that is while WE saved the company and its THOUSANDS of employees, he is reaping all the rewards and clout for it. He hasn’t done anything to help AMC, he was CEO before we came along and the company was in shambles.

    Now he is taking the good will of the original apes, like myself, with over 200k invested and throwing it our faces. Using APE shares sold at WELL below market value to influence the vote. Using “new” apes who AREN’T Diamond Hands, and only looking for the squeeze but have none of the history, none of the DD, none of the original spirit that brought the shorts to their knees.


    Now the AMC base has become filled with shills, wanna be apes turning it into a left vs right contest, and short sighted “shoot for the stars” types who jump head first into anything they read online that gives them the copium to believe all these “get rich quick” tactics never worked in the past, and aren’t working now. We just got played.

    • mark

      Exactly Mat, we rushed in December 2020 and January 2021 and saved this company as it fell below $2. I’ve been buying consistently until this R/S announcement which is not in our favor. I don’t think 87% were pro R/S, I believe Antara heavily swayed the vote. If CEO Adam were to state that he would declare a forward split some point later I would feel better about this.

      • Mat

        Unfortunately we let a bunch of Spider Monkys in the Ape enclosure and now its full of Sh*t.

  18. Miguel

    AA is a fake, he don’t care about retail. Every time we get a run up he diluted the stock. Now he wants to remove 90% of our shares! As stated in the article and I’ve said this before, the stock price would have to go to insane numbers for us just to break even.

    A stock at $5 looks reasonable for an average person to buy than a $50 stock especially AMC. This will reduce the buying pressure that will send this moving upwards. Mark my words there’s nothing stopping them from dropping the stock back to $5 once the RS is done. If they haven’t been punished yet then why wouldn’t they do the same stuff there doing now after a RS

    I ain’t no shill I have 800 shares and will continue to hold but AA ain’t what y’all make him out to be

    • Mark

      Your not getting it, your looking at it to black and white, if you buy $500 worth of shares pre split and if you buy $500 post split that’s still $500 being traded, doesn’t matter how many shares you buy it’s still the same amount of cash, you need to take a step back and look at the bigger picture and also stay away from you tube

      • Frank Nez

        I don’t watch YouTube. And your comment doesn’t help debunk any of the context stated in this article, if that’s what you’re presuming to do.

      • Miguel

        I don’t watch YouTube for any kinda stock.

        Not a lot of retail will not buy the stock if it’s $50. You have a better chance of lots of retail buying if it’s at $5 or so.

        Please tell me what’s to stop hedge funds from shorting it back down after a RS using the same methods that there using now? That it will cost more to short? how is that working out right now with fees being higher than ever.

      • Nm

        If I have 100 shares and the price goes up a dollar, I make 100 dollars. If I have 10 shares and the price goes up a dollar, I only make 10 dollars, not 100. Take a step back and look at that picture

        • Frank Nez

          The context is simply that making 100 dollars at a much higher price is harder than making a hundred dollars at a lower price. Get it?

        • Miguel

          Seems none of you can answer the questions and keep telling me to look at the bigger picture. We’ll I’m looking at bigger picture and I never seen a RS bring up the price ( there may be some exceptions out there). Most of the time the price lowers after the RS.

          Once he RS is done, AA will probably dilute again thus making the price go even lower. Thus making retail lose even more money from what’s already lost

          • Fireball Rw

            Miguel, You are 100% correct. This is another fuck job by our own CEO.
            I pray the Judge says NO

  19. Frank Nez

    Leave your thoughts below.

    • Josie

      Hey Frank. Can you do a survey and ask the public if they at least received their papers to vote for the split in the merger. Because knowing Aaron he wanted this to happen one way or another and I think he manipulated this so that a lot of people could not vote so this way he can just say they voted for us you are so shady. So please ask the public so that we can get an idea whether or not people got their papers


        Hey Josie, I received my voting papers the day after the vote. Anyone else?

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