Tag: AMC Stock Dividend

Will AMC Rebound in October?

Market News: Will AMC Go up in October?
Market News: Will AMC go up in October?

AMC traded below $7 this week and shareholders are wondering whether AMC will rebound in October.

September tends to be one of the most bearish months of the year while October tends to be the complete opposite.

Even in the crypto space investors prepare for big price action.

AMC recently filed a form 8-K filing confirming it is selling up to 425 million APE shares to reduce their debt.

This fundamental strategy could also play a big role in how the stock moves this month as it steers towards the right direction.

Let’s discuss it below.

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Bullish October for AMC Entertainment Stock?

Is October a good month for stocks?

Historically, October has been a really positive month for stocks, although it has had its volatile moments.

Unusual Whales tweeted that October tends to be a “bear-market killer”, known for its historically strong returns, especially during midterm elections, per MarketWatch.

AMC Entertainment stock has tumbled all year alongside the market.

As the market reverses, we can expect AMC to follow.

Does this mean October will spark the beginning of a bull market?

Not quite, as it will take some time to see this develop.

The country is in a recession and just about every market has substantially more sellers than buyers.

October could yield a momentary bull run, but a bull market will take time to determine based on economic and buying conditions.

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Where does this leave APE?

APE Stock
APE Stock

AMC is selling up to 425 million shares of APE to pay down their debt, which means APE prices will tumble as a result of the selloff.

The company issued the following statement:

“Under the circumstances, we caution you against investing in our AMC Preferred Equity Units, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” said the official statement from AMC Entertainment.

APE gave AMC Entertainment access to a portion of shareholders’ capital without needing the approval to dilute AMC shares.

This cash cow is now available for AMC to claim in order to pay down its debt.

Is APE worth investing in?

I personally think it’s more of an investment tool for the company rather than for shareholders aiming to squeeze shorts from their positions.

But I’m curious to know your thoughts.

Leave a comment down below.

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Related: APE Topped $304.9 Million FTDs Last Month

AMC Q2 Earnings Highlights (2022)

AMC Q2 Earnings Highlights
Market News: AMC beats earnings Q2 2022

AMC Q2 earnings have shareholders excited for the future.

The movie theatre chain company had its best 2nd quarter in 3 years, seating more than 59 million guests, up 61% from two years prior.

But perhaps the biggest news yet for AMC Entertainment is its new and upcoming stock dividend, $APE.

Which I’ll discuss more about below.

Did AMC’s Q2 earnings live up to its hype?

Be sure to join the discussion at the end of the article and let the community know your thoughts.

Here are AMC Q2 earnings highlights for 2022.

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AMC yields positive results for Q2 2022

AMC Entertainment announced it had its best Q2 in 3 years, up 61% from its previous two years according to CEO Adam Aron.

The company was able to seat more than 59 million guests worldwide in Q2 alone, due to massive titles such as Doctor Strange: Multiverse of Madness and Top Gun: Maverick.

Top Gun Maverick is currently the highest grossing film this year nearing $1.3 billion at the box office.

In Q2, AMC had $52 million of positive operating cash flow and $107 million positive EBITDA, which is relative to the strength of a company.

The company ended Q2 with $1.18 billion in liquidity, a trend we’ve seen in the past with Q1 of 2022.

AMC announced it had reduced its deferred rent by more than $250 million and plans to reduce it by another $40 million ending the year.

While AMC has become a target for Wall Street firms and journalists, it looks like opposers will continue to eat crow for the time being.

The largest movie theatre chain in the world has become a force to be reckoned with.

AMC issues APE dividend

One of the most exciting news confirmed during AMC’s Q2 earnings call was that of the issue of a new dividend.

Investors holding AMC Entertainment stock by August 19 will be granted a new stock for each AMC share they hold under the stock ticker symbol $APE.

This will be an additional security and will not dilute AMC’s float as it is a separate stock.

The ticker symbol APE stands for ‘AMC Preferred Equity’.

AMC plans to use this currency as a means to pay down debt and raise additional cash.

The new currency will be available to all international AMC shareholders and will be tradable in the market.

So, was AMC’s Q2 earnings what you expected?

Leave a comment down below.

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