The company capitalized on APE to cut some debt off the top before taking on new debt due in five years from now.
AMC has replaced $506 million due in 2023 with $400 million of new debt due in 2027.
The updated balance sheet is going to ensure the movie theatre chain company is able to grow while it slowly pays off its debt.
AMC Entertainment has reported positive earnings reports since 2021 when shareholders rescued the company from bankruptcy.
Today, it’s about maintaining that momentum to ensure the short thesis eventually changes.
Will APE Shares Go Up?
APE Stock Price Today – Yahoo Finance.
AMC’s Preferred Equity (APE) is up 50% this year-to-date.
The equity saw massive buying volume in the beginning of the new year which led to a great head start this year.
This type of buying pressure will continue to drive APE shares up in the future, that is unless majority of shareholders decide not to convert the equity into common shares of AMC stock.
Today, APE is trading around $1.80 and is up +2% in the past five trading days.
While there are still short sellers betting against the equity, AMC Entertainment has warned both retail investors of possible and significant losses due to volatility and the possibility of a short squeeze.
Are you holding shares of AMC’s Preferred Equity (APE)?
Leave your thoughts in the comment section of the blog below.
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Stock Market 2023: Top stocks outperforming the SPY.
AMC Entertainment (NYSE:AMC) stock continues to be one of the biggest ‘meme stocks’ even after its massive debut in 2021 when shares rose from $2.50 to $72 later that year.
The stock, at the publication of this article, is trading at $5.52, the same share price it was two years ago before gaining serious traction.
AMC Entertainment continues to improve its fundamentals and remains the #1 leader in the movie theatre industry.
While online streaming has grown to become quite popular, especially during the pandemic, experts are beginning to weigh in on AMC’s side in 2023.
CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.“
Even Amazon associates who asked not to be identified, per Bloomberg News, are stating the company plans to invest $1 billion per year in the movie theatre industry.
The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.
“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic”, said CNBC.
Peloton Interactive, Inc. (NASDAQ:PTON) is an American exercise equipment and media company based in New York City.
The company’s products are stationary bicycles, treadmills, indoor rowers equipped with Internet-connected touch screens that stream live and on-demand fitness classes through a subscription service.
Company shares are up +28.75% year-to-date.
Peloton recently brought Leslie Berland, Twitter’s former marketing head, as its next chief marketing officer, per Bloomberg news reports.
She previously helped lead American Express for 10 years.
Peloton is trying to shift the tides after a rough 2022, when its stock dropped more than 75%.
The company in November posted wider losses than analysts expected for its first fiscal quarter.
Berland said in an announcement that she is “thrilled” to join the company at this “unique moment in its transformation journey.”
Stock Market 2023: Top stocks outperforming the SPY.
Tesla Inc. (NASDAQ:TSLA) had one of its worst years yet in 2022.
However, the company stock is outperforming the market today already gaining +17.64% in gains this year-to-date.
Tesla CEO Elon Musk sold 22 million shares of the company last year cashing in approximately $3.6 billion earlier in December according to this SEC filing.
After the massive selloff, Elon said during a Twitter space call that he will not sell any Tesla shares for about two years.
Musk said he sees a ‘serious’ recession in 2023 and is preparing for a worst-case scenario.
And although experts are saying a recession is likely to strike the U.S. economy during the first quarter of 2023, the company stock seems to be performing quite well today.
Shares of Hycroft Mining (NASDAQ:HYMC) rose 25% earlier this year when the company announced it had discovered more gold and silver than it had anticipated.
Majority of the company is owned by AMC Entertainment.
Market News: APE failure to deliver surge since inception.
AMC’s Preferred Equity, APE, topped $304.9 million in FTDs last year.
The FTDs are reported for the month of August, per Stocksera.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.
AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.
The alarming amount of APE FTDs further proves this.
Let’s discuss it below.
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According to Investopedia, APE FTDs can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
There’s a major conflict of interest when Citadel Clearing LLC transacts orders worldwide.
Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so we can see how utilities play out in the hedge fund’s favor.
It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.
Naked short selling seems to be the most probable cause here as $APE has tumbled despite heavy retail interest.
The large amount of FTDs is manipulative and quite common in stocks such as AMC and GameStop.
Retail investors have taken it to Twitter to express their concerns to SEC Chairman Gary Gensler.
And although activists continue to engage the Chairman, no action has taken place to justify the ongoing market manipulation in APE, AMC, and GameStop.
Others are suggesting protesting outside SEC locations across the country.
Leave your thoughts on APE
There’s a lot of speculation surrounding APE FTDs and APE stock in general.
Are you holding APE?
Leave your thoughts below.
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Market News: Here’s the latest on AMC and APE stock | APE short squeeze update.
A new proposal by CEO Adam Aron has been circulating the retail community where shareholders will get to vote on the conversion of APE equity to AMC common shares.
Shareholders are anticipating short sellers will close their positions in APE if the conversion to AMC common shares is approved.
While no official voting proxy has been distributed amongst shareholders, the talks are certainly on the table.
In the case of APE and AMC, the merge between the equity and common shares may temporarily increase the share price of AMC stock.
This is where short sellers are caught in a bind.
Short sellers betting against the company would see big losses during the surge of the newly reflected share price.
Short sellers will have the option to close out their positions completely prior to the conversion or keep holding their position.
While they will not be obligated to close out their positions, they are at higher risk from momentum taking over and further escalating rising share prices.
Here is where shareholders have the opportunity to buy in heavily to keep short sellers from only pushing the price down after the merge.
As short sellers begin to fear the tide turning against them, the buyback of shares will result in a short squeeze.
If shareholders fail to create momentum, then short sellers may identify weakness in buying power and further add to their short positions.
Is an APE Short Squeeze Over?
APE short squeeze news and updates.
Not quite.
There’s a strong possibility short sellers close their positions in APE prior to a conversion (if approved by shareholders).
In doing so, they avoid seeing share prices rise and the probability of having losing positions during the merge.
Now we’re seeing the equity surge more than 180% in the past few days based on volume.
APE shares rose 75% before the Christmas holiday with volume reaching more than 177 million, up 158 million in trading volume from its average of 19.6 million.
On Tuesday, we’re seeing big trading volume come in with more than 55 million in the first hour and a half.
AMC APE Share Price Today | APE shares surge.
Will APE shares continue to rise?
There seems to be a discrepancy where we’re seeing AMC and APE’s charts mirror each other, but the complete opposite way.
While APE shares rise, AMC shares fall, especially when looking at the past 5-day trading charts.
AMC VS APE | APE shares surge.
It’s hard to say whether what we’re seeing with APE is shorts closing when we look at AMC’s chart directly next to APE.
It’s almost as if value is being extracted from AMC into APE.
And according to a Nasdaq report, only 0.18% of institutions are currently holding APE shares, so where is this volume coming from?
Have you purchased APE shares in the past 5 days?
Leave a comment down below.
What do you think of these two discrepancies between AMC and APE shares?
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It’s the biggest news in the AMC community thus far.
So, why did APE shares rise so much today?
And where did so much trading volume come from?
Retail investors are speculating insider buying triggered the massive price surge and heavy volume.
Others are alleging it’s the company’s way of injecting value back into the equity before APE re-merges with AMC common stock.
The truth is, it’s hard to say.
APE was never intended to be a valuable asset for investors, but more so a valuable asset for AMC Entertainment as a company.
Will APE Shares Keep Rising?
If insiders are injecting the equity with value before shareholders vote for the merge of APE and AMC, then it’s very possible the equity may continue to rise.
As of right now, where the immense amount of volume came from is undetermined.
What’s certain is many shareholders weren’t too happy about the creation of APE in the first place as it created unnecessary loss for shareholders.
Here are the CEO’s comments published on Twitter:
“Also, APEs worked exactly as intended to let us raise needed cash, buy back debt, explore M&A. But a huge discount in APE market price vs common stock must be addressed. We’ll hold a shareholder vote. It’s time to convert APE preferred into AMC common to eliminate that discount.”
APE shares have been massively shorted to cents, AMC stock is now trading below $5, a solution has to be addressed.
And so it has.
Adam Aron is proposing a 1-for-10 reversal stock split where shareholders will get left with 1 share of AMC for every 10 shares they hold in exchange for a higher share price.
The idea is to give shareholders the illusion of a higher share price by reducing the number of shares they hold.
The value of an individual’s portfolio would remain the same amount.
However, if an investor holds 10 shares of AMC, they will convert to 1 share.
If an investor holds 100 shares of AMC, after a 1-for-10 reverse split they will hold 10 shares.
All for the sake of making the value of AMC shares appear much higher.
With AMC currently trading around $4.50, a 1-for-10 reverse stock split would mean the stock will then trade at $45 per share.
Leave your thoughts below
I’m curious to hear your thoughts on what’s currently occurring with AMC Entertainment and its APE shares.
How do you feel about the entire situation at hand?
Leave your thoughts below for the community to see.
Market News: AMC CEO Adam Aron addresses falling APE shares in new press release.
AMC shareholders have been urging CEO Adam Aron to address APE, AMC’s Preferred Equity as shares fall below $1.
APE has taken a nosedive from $7 to the current share price of $0.68.
Retail investors have demanded the CEO to speak out on what’s happening with the share price after bold announcements of a ‘pounce’ earlier this summer.
The CEO has now spoken out on the falling APE share price in a new press release shown below.
In a new press release by AMC Entertainment, the CEO released the following statement:
“Even though the APE units and our common shares are economically equivalent, it is disappointing that the APE units have since inception consistently traded at a significant discount to the AMC common shares.
While the trading prices of the two securities seem to reflect distinct market and trading dynamics, the APEs are serving precisely the purpose originally intended for them.
At a time when one or more of our competitors have been facing potentially devastating liquidity challenges, by contrast during the past 90 days, AMC has been able to raise $162 million of additional cash through the sale of equity thereby improving our own liquidity position markedly.
In addition, AMC reduced debt for the third time this year, including most recently by buying back debt at a substantial 61% discount and is able to contemplate various opportunities to add theatres to our fleet including just having successfully secured for AMC the attractive former Arclight Boston.”
Adam Aron added, “Our outlook for the industry is positive as we expect the box office will be larger in 2023 than in 2022.
Our liquidity position is strong, as we continue to demonstrate our ability to raise cash, thereby strengthening our balance sheet.
We also continue to enhance our footprint by acquiring superb theatres without significant capital outlays while at the same time exiting under-performing locations.
For so many reasons, we believe the future remains bright for AMC.”
APE Continues to Serve Its Original Purpose
Despite Adam Aron’s disappointment in the share price of APE, he says the equity continues to serve its original purpose to provide liquidity to the company.
APE is down -88.67% since its inception with majority of the float being held by retail investors.
Only 0.18% of institutional investors are currently holding the equity according to a Nasdaq report.
There was tension between shareholders whether to sell or hold the security once it became available in the market due to primarily being a liquidity tool for the company rather than an investment for retail investors.
In October, AMC Entertainment released a statement warning both retail investors and short sellers of the possibility of accrued losses through either the possibility of a short squeeze, or company capitalization.
Earlier in December, Yahoo Finance listed APE as the #1 top shorted stock on their list.
Are You Holding APE Shares?
What is your current sentiment on APE?
Will APE shares recover or is too much trading happening in dark exchanges that suppress retail volume from having an impact on share prices?
Leave your thoughts in the comment section down below.
Market News: Here’s the latest on AMC’s Preferred Equity, APE.
Retail investors are angry at regulators for allowing Wall Street to decimate APE stock.
While AMC’s Preferred Equity (APE) was intended for the company to capitalize on, banks, institutions, and short sellers have abused shares to the ground.
The equity was meant to provide AMC Entertainment with liquidity in order to pay down their debt.
While AMC was able to reduce their debt by $106 million due to APE, shares have been shorted from $7 all the way down to $0.81.
Shareholders questioned how shorting APE was possible in the first place, failing to recognize that APE is a tradable security just like any other stock.
Faceless influencers within the AMC community led many retail investors to believe that shorting AMC’s Preferred Equity was impossible.
And unfortunately, this perception clouded many people from creating a proper investment strategy or embracing for what was to come.
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Retail Investors Seek to CEO for Answers
AMC and APE shareholders all have one common goal in mind, an AMC short squeeze and an APE short squeeze.
And although many shareholders have been transformed into paying customers, others are looking at AMC CEO Adam Aron for answers.
Loyalists don’t question the CEO and will condemn you for doing so, but if shareholders are still invested in the company, they have every right to yearn for answers.
Adam Aron has successfully maneuvered AMC out of bankruptcy, primarily thanks to its shareholders of course.
He’s utilized Twitter magnificently in a way that no other CEO has ever done so before.
And you can’t help but to admire the business personality in him that can raise cash out of thin air.
Addressing shareholder concerns is important, whether you agree or not.
Does It Even Matter?
Some of you care about your money, your finances, your investments, and some of you simply don’t.
To some, being part of an embracing community, being known in a community, and embracing the movie theatre industry, but more specifically AMC Entertainment, is more important than monetary gains or financial abundance at this point.
And is that even a bad thing?
You just want to be heard; you want to fight evil in the markets without a care about money.
Or maybe you’re simply in the middle.
👀@CEOAdam Thanks! I can say we all enjoyed! German apes: he will be in Germany around january or februari and probably in Berlin…. My favorite city…. will try to be there! pic.twitter.com/xysVCeyJIR
Business News: AMC Entertainment introduces news Visa Card.
AMC Entertainment just introduced a new income stream through its new AMC Visa card.
Moviegoers will now get a chance to earn rewards points on all AMC Entertainment purchases.
The movie theatre chain currently has a waiting list where the cards will become available in early 2023, according to the official website.
AMC Stubs members who sign up for the waitlist and apply for a card will be entered for a chance to win a trip to attend a red-carpet movie premiere with AMC Theatres CEO Adam Aron.
The strategy aims to increase its revenue by distributing these credit cards amongst avid moviegoers and its most loyal shareholders.
And it looks like many of Adam Aron’s followers on Twitter have already begun to sign up.
If there’s one thing Adam Aron is an expert on, it’s on raising cash for the company.
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AMC Entertainment News Today
AMC Entertainment CEO Adam Aron announced on Twitter today that AMC will now be accepting applications for its new Visa card to be distributed in early 2023.
The company has creatively come up with new ideas since its resurrection in 2021 on how to raise capital to pay down their debt.
In November, the company launched its first-ever online merchandise store, selling t-shirts, hoodies, and other AMC branded items to their customers and shareholders.
AMC Entertainment announced a month prior that it had reduced its debt by $106 million and extended its maturities until the year 2027.
The movie theatre company was able to raise cash by capitalizing on its preferred equity (APE).
APE is another genius way the CEO was able to capitalize from his shareholders.
Even now as AMC shareholders continue to buy APE shares, they’re supplying the company with an income stream of its own through a capital pool.
While APE may not be a shareholder incentive, it certainly is for the company.
![Will AMC Stock Squeeze This Year? [Short Interest Data]](https://i0.wp.com/franknez.com/wp-content/uploads/2022/01/Will-AMC-Squeeze-in-2022.jpg?resize=40%2C40&ssl=1){kind=small}
Are you prepared for a recession? Leave your thoughts below.