Many AMC shareholders are excited about the company’s introduction to APE stock.
However, others are wondering if the dividend is even worth it.
Should you buy AMC before or after the dividend goes through?
This article is going to help you decide the best route for you.
Let’s get started!
Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.
Let’s dive right into it!
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news and articles like this to stay up to date.
APE is only a few days away
Investors who hold or buy AMC stock prior to Friday the 19th will be granted with the same exact number of APE shares on Monday the 22nd for every AMC share they hold.
AMC and APE will make up the value evenly of AMC’s closing price at the end of the bell on Friday.
This means if AMC closes at $25 per share on Friday, both AMC and APE will be worth $12.50 on Monday.
Market conditions based on supply and demand will then decide the future price of both AMC and APE stock.
If you hold $1,000 in AMC, the value of your portfolio will still be worth $1,000 – the only difference is it will be split between two securities (AMC and APE).
APE Theory
The theory behind APE is that it’s supposed to uncover the vast amount of synthetic AMC shares out in the market.
And if it proves to be successful, this will be MASSIVE.
Brokers will have no other option than to open investigations and be obligated to provide investors with APE.
In the process, institutions holding synthetics will be forced to buy back every share they’ve flooded the market with, triggering MOASS (mother of all short squeezes).
This would mean pay day for AMC shareholders, and the greatest destruction of short sellers to ever happen in history.
The theory says that AMC and APE will follow each other relatively closely, so if one skyrockets so will the other.
In this scenario, shareholders are receiving value on top of value.
Who does this benefit?
If you decide to buy AMC stock due to the APE theory, then it’s worth the risk because the rewards could prove to be extremely high based on the theory.
Fundamentally however, it benefits AMC Entertainment as a company because they will be granted access to half of shareholders capital through APE.
This means the company may cash out at any moment should they decide to raise capital to pay off some debt; APE’s price would then tumble during a hypothetical selloff.
Buying AMC prior to the dividend means you will be granted with APE stock, but half of your capital will be at the company’s disposal should they require access to it.
Buying AMC after the dividend will mean AMC Entertainment stock will be at a bargain price – you can’t get a better deal than that.
Investors can’t go wrong with either, but it’s important to understand your finances and where your money is going.
But I’m curious to learn what you think.
Be sure to leave your thoughts in the comment section down below.
You Can Follow Me On: Twitter | Facebook | LinkedIn
Related: How Much Will APE Stock Be Worth?
About The Author
We buying Ape On Monday !!!
you are wrong. its like he said. as of close of market on friday. the amc price should be halved come monday but the other half you will get back in ape shares making you whole again. after that the markets will dictate the path for each individual (amc and ape) stock. its my understanding ape is not shortable and there will be no options(which is good for holders of ape). hope this helps.
I thought APE was going to be priced at 1/20th the closing price of AMC. So after the “split” if closing price is $20 then shareholders end up with $1 APE and $19 AMC. Please correct me if I’m wrong.
BUY and HODLE, $AMC and $APE
I’ll just keep buying before and after. They are both going to 🚀
so in theory i could sell off my APE stock and buy up a grip of AMC stock correct?
Sure if you want to essentially u will be selling part of the amc shares u have been holding for over a couple years remember that when you make ur decision
I don’t know if we will be able to sell before split price and still receive ape I would love to get in lower
I have two theories; if I am Correct this will happen. If Brokers,& Hedge Funds have really have been using synthetics shares they would need to (A ) Purchase AMC before Monday which means before the end of trading on Friday , to give to all the Synthetic shareholders there APE shares on Monday . If this is the case we should start to see AMC make a move in the early afternoon tomorrow Wednesday. Thursday & Friday could be our biggest days in a long time. OR ( B) They use a stall tactic & excuses on Monday to justify why you did not receive your APE share , Then they would buy APE shares on Monday , Tuesday Etc knowing the price for APE will be half the Price of AMC on Friday then give those Apes out . Which makes sense to you?? To me wait and make excuses to everyone and buy APE at half the price of AMC . In either case we need to hold, and if we don’t see movement UP by the end of Friday, HOLD YOUR APE to see if B happens.
If neither happens then we have been BS about synthetics. I personally believe B will happen why not buy APE at half the price of AMC value this week. But that should cause APE to Rally.
Let’s start a discussion! Leave your thoughts below.
I’ll be leaving what I have and receiving my APE, and next week I’ll be buying a tonne more AMC
🍿🦍🦍🦍
Good call…