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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The stock has had an insane amount of demand in the market from retail investors, but overleveraged shorting has suppressed the stock’s price from rising.
The equity closed at $0.98 per share and fell as low as $0.90 on Wednesday.
Majority of the market pumped during JPow’s announcement but both AMC and APE finished red on the day despite above average trading volume.
APE had an exceptional amount of buying power reaching 62.8 million, it’s average trading volume is 16.2 million.
The manipulation of APE in the market has shareholders looking at the CEO.
Citigroup’s Ties with APE and AMC Entertainment
Citigroup APE ties. AMC Entertainment news + more.
AMC Entertainment announced that it would hire Citigroup to help it sell 425 million APE shares.
This comes from the movie theatre chain’s strategy to capitalize from its shareholders to pay down debt.
Shareholders have argued in the past that the issuance of APE should have been voted for.
AMC Entertainment was able to successfully and legally claim a fraction of shareholder’s hard-earned capital in order to keep raise cash.
While there are shareholders who are willing to give their entire paycheck to the company, others weren’t too happy with the move.
Now it’s been disclosed that Citigroup has been shorting AMC Entertainment for the better part of over two years now.
Citigroup’s 13F-HR filing shows the company has been selling shares while trading put options in the derivatives market.
Meanwhile, the bank has also been downgrading AMC’s share price and promoting it in the media.
That’s right, the partner that is helping AMC sell APE shares has also been capitalizing from shorting the company.
Shareholders Look to Adam Aron for Answers
While there are shareholders that have total trust in AMC’s CEO Adam Aron, there are others who simply want answers.
Shareholders are invested in AMC Entertainment in order to capitalize from the company, but it currently seems to be the other way around.
AMC Entertainment just launched their online merchandise store, which is incredibly bullish for the company as it allows them to venture into other income streams.
This however does not prevent certain shareholders from wanting answers on APE’s dilution and massive suppression in share price.
Still, majority of shareholders seem to hold on to the CEO’s statement when he said to not confuse his silence with inaction.
But I’m curious to know what you think.
Leave your thoughts in the comment section down below.
Will retail investors trigger an APE short squeeze?
AMC’s Preferred Equity (APE stock) has made it available for the company to raise cash instantaneously.
The company announced in September it would sell up to 425 million APE shares to pay down their debt.
AMC Entertainment has steadily improved fundamentally since 2021 when retail investors injected the company with liquidity to squeeze short sellers.
The movie theatre chain has acquired several new theaters, entered the crypto and NFT space, and has beat every quarter for two years in a row now.
Despite what mainstream media has portrayed, retail investors have not ditched the pursuit of squeezing Wall Street again.
The massive retail community who participated in the trading activity which caused AMC and GameStop to rise are now looking to squeeze AMC’s Preferred Equity, APE stock.
How high can APE stock go?
Let’s discuss it.
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What is APE Stock?
APE stands for ‘AMC Preferred Equity’ and is a tradable security in the stock market deriving from an AMC stock split.
Retail investors who held or purchased AMC shares before the stock split would be granted with 1 APE share for every AMC share they held.
The stock split was marketed as a dividend which confused many shareholders at first.
Some retail investors weren’t too pleased to hear AMC’s share price would be divided evenly between AMC and APE stock, but others viewed the split as an opportunity.
The main purpose of APE stock was to allow the company to capitalize from its shareholders during a time of need.
AMC Entertainment would need approval from shareholders to dilute the stock and raise cash, but not with APE.
APE would act as a pool of liquidity for the company to pull money from.
How is APE’s Value Determined?
At first, APE’s value was divided in half from the close of AMC’s trading price prior to the stock split.
Both securities’ value has been determined by market conditions since.
This means how high APE stock goes will highly depend on how much buying power the security receives from retail and institutional investors.
But the market in general has been tough for most investors.
Today’s bear market has only set lower prices for both AMC Entertainment and APE stock.
It’s fair to predict that APE’s value will see more downside before a reversal.
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Who will receive APE Stock?
AMC shareholders will receive 1 APE stock for every 1 share of AMC they hold at the end of the trading day of August 15th, per AMC’s press release.
Shareholders should see the new dividend stock reflect in their broker accounts the following week by Monday the 22nd.
APE stock is not a cash dividend which means shareholders will be able to trade the security like any other stock.
“These 516,820,595 new “AMC Preferred Equity units” will trade on the New York Stock Exchange with the symbol APE”, said CEO Adam Aron in a tweet earlier this month.
Shareholders who sell AMC stock prior to the closeout date will not receive APE stock upon the issue date.
Will APE expose synthetic shares?
There is a 50/50 chance APE stock will expose synthetic shares.
The reason being is that AMC Entertainment has already issued the 516.8 million equity units per outstanding AMC shares.
This means that the equity units already belong to every individual shareholder.
The problem will arise only when AMC shareholders do not receive APE stock.
If AMC shareholders only receive partial APE securities, then brokers will need to address the issue at hand.
An incomplete batch of APE stock could signify shareholders are indeed holding phantom shares.
But how likely is this scenario?
It’s very unlikely since naked shares tend to be transacted outside the lit exchange and are not traceable/recorded for the public.
Here’s what the CEO had to say regarding synthetic shares upon the announcement of this new equity unit.
6. Candidly I’ve seen no evidence so-called fake or synthetic shares exist. But many of you disagree. This preferred equity dividend goes ONLY to company issued shares. So, it will have the impact of a “share count” or unique dividend many of you have sought. #TodayWePounce
The preferred equity dividend will go ONLY to company issued shares so if there are institutions holding synthetic shares, they will simply not receive APE.
How much will APE Stock be worth?
No, APE stock will not be worth $0.01 as many thought per AMC’s press release.
Adam Aron confirmed the “$0.01” referred to be merely a ‘placeholder’ used for technical legal terms.
APE stock will be worth approximately 50% of where AMC shares traded just before the dividend.
From there, market trading conditions will determine the ongoing share price of APE stock.
More FUD work. Ultimately, market trading determines the ongoing prices of AMC shares and APE units. They are very similar in nature, so logic says that initially the AMC share should approximately trade for 50% and the APE unit 50% of where shares trade just before the dividend.
This means that if AMC traded at $25 per share before the dividend goes into effect, shareholders will see both AMC and APE stock reflect $12.50 per share each.
The value of AMC shareholders’ portfolios will not change but rather be divided in half by these two securities.
In other words, the value will be the sum of 1 AMC share plus 1 APE.
5. So for each of your AMC shares, after the dividend you instead will own 1 AMC common share *and* 1 APE. Logic says the share price will fall, but your value will be the sum of 1 share *plus* 1 APE. Different, but similar to a 2 to 1 stock split of common shares. #TodayWePounce
While AMC shares are not being diluted, the introduction of APE stock allows the company to use half of the value of AMC shares to raise capital and pay down debt if they choose to.
Since shareholders have expressed they do not want to dilute AMC anymore, AMC Entertainment’s solution was to create a separate security (APE) from which they could use instead.
To sum it up, the creation of APEs should help clarify for you who is in our current shareholder base and how many company issued shares there are. Beyond that, though, we believe APES should let AMC raise capital, pay debt and do more. Not good news for the doubters. #Checkmate
