AMC Shareholders approved combining AMC shares & APE units !

16 giu 2023

Even though I was one of the first to signal you about the AMC potential to become the next GME Gamestop:

Today I want to share with you my Bearish Thesis:
In my opinion, there are factors that suggest AMC Entertainment Holdings (AMC) may experience a decline in share price following the APE (Additional Paid-in Capital) conversion. The approval of combining AMC common shares and APE units by an overwhelming majority of shareholders (87% in favor) indicates a significant increase in the capacity to issue additional common shares (88% in favor).

The increased capacity to issue common shares can potentially lead to dilution of existing shareholders' ownership. As more shares are issued, the existing shares represent a smaller portion of the overall ownership in the company. This dilution, coupled with the potential influx of additional shares in the market, can put downward pressure on the share price.

Furthermore, the approved combination of AMC common shares and APE units may result in increased selling pressure as some shareholders may choose to liquidate their positions. This increased supply of shares in the market can further contribute to downward price movement.

Considering these factors, my price target of $3.80 by fall reflects a bearish sentiment for AMC's stock. It is important to note that the price may even go lower due to the potential dilution and increased selling pressure resulting from the shareholder-approved measures.

Looking forward to read your opinion about it.

23 giu 2023

Trade attivo

AMC trading at $4.01, close to our price target! If they combine APE with AMC and dilute the shares, i expect to see AMC below $3.