Big changes are happening next week for AMC Entertainment.
Shareholders are going to be receiving AMC’s Preferred Equity, or APE as a dividend starting on Monday.
The stock closed at $18.02 on Friday after being up more than 7 times pandemic levels just a little over a week ago.
AMC’s share price has since cooled off from its rally up to $26 but retail investors are convinced market makers are pushing the stock down.
Regardless, shareholders are optimistically anticipating some bullish momentum.
Here is what we can expect from AMC Entertainment stock next week.
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AMC to distribute APE stock
On Monday, August 22nd, AMC shareholders will be receiving an exact amount of APE stock equivalent to the amount of AMC shares they hold.
APE will trade for half the price of AMC’s share price at the close of AMC on Friday, which means shareholders can expect AMC and APE to trade approximately around $9 per share each, respectively.
Market conditions will determine the price of both securities moving forward based on supply and demand of course.
But this means both assets will be on a heavy discount.
While APE stock provides AMC Entertainment with capital, some investors see the security as a collectible – part of the movement against Wall Street corruption.
There’s no doubt shareholders will be purchasing both AMC and APE stock next week but if institutional buyers get involved, it could mean heavy price action.
While institutions might not be into APE as much as ‘apes’ are, APE could prove to be an incentive for institutional buyers to buy AMC at a bargain.
APE is already going to improve AMC’s fundamentals drastically since it’s ultimately a pool of capital for the company to access at any moment.
AMC Entertainment stock might attract investors who see this power move as a genius strategy.
Is momentum guaranteed next week?
Momentum and buying pressure are never guaranteed in the market.
Investor sentiment will dictate how much buying pressure feeds both AMC and APE stock next week.
It’s all about interest, and majority of AMC shareholders seem to be interested in adding to their positions.
Shareholders have been buying AMC stock prior to the distribution of the dividend to receive more APE shares.
More than 513 million APE will be distributed, essentially initiating a share count.
Retail investors betting on an AMC short squeeze are determined APE could be the catalyst that will expose synthetic shares in the market and trigger AMC to squeeze past its previous all-time high.
And while AMC does have the potential to squeeze based on its high short interest data, only time will tell if APE truly is the catalyst for what could be one of the most incredible plays in the history of the stock market.
AMC technical analysis
AMC Entertainment stock is hovering just above a massive level of support around the $17-$18 range again.
This means that AMC has the potential to bounce from this level of support and retest rejection levels around $27 per share.
Breaking $27.50 could set AMC on a course to the unknown where it may surpass last year’s all-time high of $72 based on how high the demand for the stock is.
As of now, what we can expect next week for AMC Entertainment is a coin toss.
AMC’s share price will be lower with the issuance of APE stock which means shareholders will have to lift AMC back to these trend lines.
Momentum has always been AMC’s catalyst though, and I’m confident that with enough buying pressure, retail investors will see a bounce back in the coming days.
But I’d love to hear your thoughts in the comment section down below.
What do you anticipate for AMC next week?
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People with AMC stock that has been DRSed are seeing their APEs. However, some people, myself included, are seeing less APE than AMC. Admittedly, it isn’t monday yet, so computershare might fix this before then. But still, something to keep an eye on.
AMC may be the clearest example in history of stock price manipulation by MM and dark pools. AMC price movements are hidden, and what is visible defies logic.
I don’t see how this will change just because of APE. AMC shares might become high demand but will we see the stock price rising as it would in a legit market? We all want to make money. So that’s the question.
I picked up as much AMC as I could afford last week , which to some folks is not a huge amount but it is quite a risk to me. I am skeptical that the big institutional shorters will ever be forced to deliver anything on their synthetic shares. I believe the entire system is corrupt. The big positive out of this move is that we will finally hopefully see an honest share count made public. Will there be large fines and hedge funds forced into bankruptcy as AMC/APE soars into the triple digits? We “Apes” can dream and hope for justice!
I am cautiously optimistic. If I’ve learned anything it’s that big money does not play by the same rules as the rest of the world. They have the power to bend and manipulate just about anything… And their egos are even more of a problem than they’re lust for money. But I do believe if we band together and hold tight, we will win eventually! Going to take patients!
If this doesn’t shoot the stock price to the moon then nothing will.
Let’s start a discussion! Leave your thoughts below.
I wish I could buy more of both, but I can’t. But, I will soon. I think it’s what is needed to see who has what?
E*trade dropped my APE shares into my account sometime today. Now we wait for Monday price action!