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.
Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.
Let’s dive right into it!
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news and articles like this to stay up to date.
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.
Where does this leave APE?
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.
You Can Follow Me On: Twitter | Facebook | Instagram
Related: APE Topped $304.9 Million FTDs Last Month
About The Author
Can’t win a rigged game…I’m no longer confident this is going to squeeze. I’m holding regardless down to zero if needs be but…I’m not getting my hopes up. It’s been almost two years of holding…nothing but crime has happened and I don’t see that trend changing anytime soon. Sucks that the powers that be that’s supposed to protect us…are not.
I think the trend will continue, but not forever. Once the market reverses so will AMC.
Frank, you didn’t mention in this article something that I believe is very important, which is that Adam Aron will issue the new $APE units through CitiGlobal, and he will have oversight into the disbursement of them. Some are calling these “escape tickets”, because they will help those brokers that are currently holding the IOU’s for $APE close them out. If handled properly, these newly issued units will be purchased according to supply/ demand, as every stock is supposed is supposed to. If this theory is correct: $APE will rocket, and most likely start the AMC squeeze. I could be wrong, so please look into it. Thanks.
No and No! AMC will not be bullish until some serious arrests are made because there’s too many ways for the hedge funds to cheat and now that we’re on the subject I think that the cost to borrow percentage is a fictional made up number and there’s been a secret pact made between the banks and hedge funds for probably 2 to 3% reality. Then you have the fraud pool because when there’s no shares for the hedge funds to borrow notice how the volume to the fraud pool kicks up to about 70 to 80%. Then you have hedge funds trading shares back and forth. These are just a few of the tactics they use on a daily basis to short the stock whether it’s AMC or APE so in my opinion this is a 5-year play.
I am just shaking my head, With Adam Aron dumping all that ape stock on the market with were the price is at $2.45 at this moment where will it drop to. Like a jerk I bought all the BOUNCE hype and should have following Lou Vs Wallstreet advice and dumped my shares when it was in the 7’s . Like eveyone else we bought the bounce BS and we are getting killed. Now what to do? I have no idea . Can it go off the board after his dump?
Guys sorry, I ment the POUNCE BS, not bounce.
I have no choice but to hold. I’m too far in the red.
Didn’t sell the preferred shares but I also haven’t added to the portfolio either. Just wanted to see how things played out. In the meantime, I’m still buying dips on $AMC. That said, even buying $AMC has become an obsession and I’ve almost set aside my own personal rules in trading. I may need an intervention…
Let’s start a discussion! Leave your thoughts below.