AMC Entertainment (NYSE:AMC) CFO Sean Goodman cashed in approximately $230K of AMC’s Preferred Equity (NYSE:APE) shares on Thursday according to an SEC filing.
Fintel reports the CFO sold roughly 171,431 shares of AMC Entertainment in 2022 taking home a tidy $3,384,701.
In 2021, Sean Goodman made approximately $7,067,369 when he sold a total of 220,425 AMC shares between March and December.
Today, the CFO holds only 4,420 shares of APE.
There are now shareholders who hold more APE shares than AMC Entertainment’s own CFO.
Shares of APE have risen by more than 150% in 2023 and more than 54% for common shares of AMC stock.
The equity closed at $3.01 on Friday despite the selloff.
The conversion of APE to AMC stock remains in the air; here’s the latest APE stock news.
What happened to APE?
APE shares have fallen from their high (inception) of $10.50 to a low of $0.65.
The equity was heavily attacked by short sellers, momentarily making it on Yahoo’s top list of most shorted stocks in the market.
The purpose of APE was to utilize shareholder’s cash to pay down debt, which AMC accomplished to do in September selling 425 million shares, a month after listing.
AMC Entertainment delivered the following statement that same month:
“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 an official statement from AMC Entertainment.
However, the company also warned short sellers of a potential APE short squeeze, resulting in severe losses for those betting against the security.
Retail investors are now waiting for this short squeeze to recoup losses and possibly profit from any type of massive price surge.
Fortunately, the CFO’s sale of APE shares didn’t impact the equity’s price this past week.
In fact, bullish sentiment amongst retailers remains intact.
Discussion ⬅️
Knowing what’s occurred with APE shares today, would you have done anything differently?
An investor reached out asking what I made of an article by Bloomberg of why APE was created in the first place, published on the 1st of February.
To which I answered, “It’s in line with what I said before APE was created (layman’s terms)”, an article published in August mind you.
APE was never intended to be an investment vehicle for shareholders, it was always meant to be a liquidity pool for the company.
Many didn’t like that I said this, but it was the truth, and the company claimed it many times too.
But many shareholders, and probably not even you, but many did follow blindly to the hype influential accounts were making up.
Hey, it sounds nice I get it.
Just be aware of what content you’re consuming.
APE shares are up +150% year-to-date
If you never owned APE and you purchased shares during the first week of January for the first time, you’re killing it – but that’s a very small percentage of you, if any.
It’s time retail investors stop handing their money away and start capitalizing on opportunities when they present themselves.
Some of you have capitalized on AMC a few times over, some of you have even capitalized on Hycroft.
Majority of you have been in profit, made a decision not to take profits, and then let those gains turn into losses.
I’ve been there.
Stop listening to people making up narratives.
Instead, stay tuned to where the money is going, position yourself, and take profits when you’re in profit.
Profitable Case Studies / Probabilities
- You purchased AMC in Feb 2021 (same time I began writing about it) when it was trading around $5-$6 per share and sold with profit at some point later that year.
- Profiting from Bitcoin when I said buy at $29K (June 2021), jumps to all-time high of $66K, doubling your investment.
- You saw my newsletter on SHIB back in October 2021 during the weekend; the cryptocurrency goes to a record all-time high that next week.
- Capitalizing on HYMC when I said it could be a good short-term trade (March 2022).
- Getting in on LUNA when I called unusual whale activity in September 2022; the crypto ripped that same week.
- I called MULN at $0.32 per share on January 4th, 2023, the stock has surged to $0.44 since the publication of the company’s latest developments (not financial advice), but analysts and shareholders expect it to continue rising.
These are all very real case studies I’ve done that have provided many opportunities to many of my readers.
7th on the list was a complete bust, September 2021: SPRT stock.
6 out of 7 case studies have put retail investors in profit at some point.
Of course, we don’t always cash out when we should have; that’s ultimately on us.
So, could you really blame AMC CFO Sean Goodman for getting the bag?
Some will look at it objectively and think ‘opportunity’, others may look at it as insiders taking advantage of something shareholders built.
But I’m curious to hear your thoughts on the CFO selling APE.
Leave a comment below.
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