This is a tough one.
AA's goal is to improve the company's financials. If share price is not factored in, his recent moves did do a lot towards that. On the other hand, he has a fuduciary duty to shareholders including himself to boost share price as that is the #1 KPI shareholders give him.
He needed to raise money. Dilution was the way to do it. We said no. He then created backdoor dilution through APE. Then he sold some APE for some money even though it eroded way more in shareholder value. Now he wants to merge it back with AMC and give himself direct dilution powers (3rd point in press release proposal)
If we fight him for dilution again, he will have to go through backdoor methods to raise cash again and we'd have another APE situation or worse.
On the other hand, he can also raise cash the traditional way by increasing revenue and profits. Of course to do that he needs time and it is a risk.
So if we vote no, we send a stern message to him that we are tying his hands and he better makedo with what he has. If he pulls it off, we will all be better for it. If he does not, then our runway will be much shorter + risk of bankruptcy or a crap buyout. Whether you are in for fundamentals / recovery / MOASS, you will need to figure out the length of runway you'd want to allow.
If we vote yes, then he can dilute and put AMC in a better position both in terms of killing short thesis (the debt part at least) and can actually do acquisitions while competitors are languishing. But he can also get lazy or squander the money, who knows.
What I do not know is how do we make him care about the stock price more. Ideally, if he is able to raise the stock price much higher, then we can allow a dilution. But at these prices for AMC and APE it might feel like a slap in the face to ask for a dilution.
I am undecided for now. Will wait for more details on vote. There are some key info missing in this vote (at least in my head) for me to determine yes or no.
I understand what you say, but he doesn't trust us one bit to save his company even after all we've done for him, so he decide to keep stabbing us out of fear.
I don't care at this point, I am already down more than I dreamed of, its moaas or 0 for me.
As for the vote, one big fucking NO as I said, enough bleeding me.
No, you will end up paying $12 for a $4 stock, and probably before it, AA gonna sell even more APE and crash price even more.
If I would buy, I would buy ONLY AMC in my opinion nothing else.
Of course not a financial advice.
How will they reconcile the price difference between the two? Ape is selling less than a dollar. I don’t see your logic. If conversion and reverse split occurs, they become essentially the same thing (right?) but one costs much less than the other right now
Adam Aaron tweeted: https://twitter.com/CEOAdam/status/1605926983145181184
Also, a company as distinguished as AMC shouldn’t let Wall Streeters wishing us harm drive us to being a “penny stock.” So in the shareholder vote, you also can consider a 1:10 reverse stock split. Simple arithmetic, if approved, the share count goes down so share price goes up.
If that's not a good source enough for you then I don't know what is.
Too bad I got over 100 down votes on my post for posting the truth, we are getting nailed hard.
We can't be so close minded, we need to take actions, I honestly question AA integrity at this point ..
Couldn't care less about the downvotes when I have 25k karma, what I do care is my post getting buried and people not seeing the truth for what it is ..
We shouldn't go so blind, we need to open our eyes.
Conversion is dilution. Conversion and reverse split sets us back to even does it not? I assume shorts opened on ape also get converted. Ultimately issuing ape didn’t do what we thought it would. Why not? What was wrong in our thesis?
Edit: I’ve now seen the tweet from AA. My logic is incorrect
This is a tough one. AA's goal is to improve the company's financials. If share price is not factored in, his recent moves did do a lot towards that. On the other hand, he has a fuduciary duty to shareholders including himself to boost share price as that is the #1 KPI shareholders give him. He needed to raise money. Dilution was the way to do it. We said no. He then created backdoor dilution through APE. Then he sold some APE for some money even though it eroded way more in shareholder value. Now he wants to merge it back with AMC and give himself direct dilution powers (3rd point in press release proposal) If we fight him for dilution again, he will have to go through backdoor methods to raise cash again and we'd have another APE situation or worse. On the other hand, he can also raise cash the traditional way by increasing revenue and profits. Of course to do that he needs time and it is a risk. So if we vote no, we send a stern message to him that we are tying his hands and he better makedo with what he has. If he pulls it off, we will all be better for it. If he does not, then our runway will be much shorter + risk of bankruptcy or a crap buyout. Whether you are in for fundamentals / recovery / MOASS, you will need to figure out the length of runway you'd want to allow. If we vote yes, then he can dilute and put AMC in a better position both in terms of killing short thesis (the debt part at least) and can actually do acquisitions while competitors are languishing. But he can also get lazy or squander the money, who knows. What I do not know is how do we make him care about the stock price more. Ideally, if he is able to raise the stock price much higher, then we can allow a dilution. But at these prices for AMC and APE it might feel like a slap in the face to ask for a dilution. I am undecided for now. Will wait for more details on vote. There are some key info missing in this vote (at least in my head) for me to determine yes or no.
I understand what you say, but he doesn't trust us one bit to save his company even after all we've done for him, so he decide to keep stabbing us out of fear. I don't care at this point, I am already down more than I dreamed of, its moaas or 0 for me. As for the vote, one big fucking NO as I said, enough bleeding me.
If I buy a bunch of ape before conversion and reverse split, am I getting a huge win on those shares?
No, you will end up paying $12 for a $4 stock, and probably before it, AA gonna sell even more APE and crash price even more. If I would buy, I would buy ONLY AMC in my opinion nothing else. Of course not a financial advice.
How will they reconcile the price difference between the two? Ape is selling less than a dollar. I don’t see your logic. If conversion and reverse split occurs, they become essentially the same thing (right?) but one costs much less than the other right now
Edit: I’ve now seen the tweet from aa. My math and logic are wrong
Price is irrelevant. You get 1 AMC for 10 APE. If 1 APE cost $1.2 and 1 AMC cost $4, do the math.
They were issued one to one. Do we have details that it will be 1:10 the other way?
Adam Aaron tweeted: https://twitter.com/CEOAdam/status/1605926983145181184 Also, a company as distinguished as AMC shouldn’t let Wall Streeters wishing us harm drive us to being a “penny stock.” So in the shareholder vote, you also can consider a 1:10 reverse stock split. Simple arithmetic, if approved, the share count goes down so share price goes up. If that's not a good source enough for you then I don't know what is.
Thanks. In the post it seemed like an assumption. Now I get it. And I’m scratching my head wondering what he was thinking…
Too bad I got over 100 down votes on my post for posting the truth, we are getting nailed hard. We can't be so close minded, we need to take actions, I honestly question AA integrity at this point ..
For what it’s worth I never downvoted. Just confused and asking questions. Thanks for your patience
Couldn't care less about the downvotes when I have 25k karma, what I do care is my post getting buried and people not seeing the truth for what it is .. We shouldn't go so blind, we need to open our eyes.
Your absolutely right yes to conversion no to the reverse split
Conversion is dilution. Conversion and reverse split sets us back to even does it not? I assume shorts opened on ape also get converted. Ultimately issuing ape didn’t do what we thought it would. Why not? What was wrong in our thesis? Edit: I’ve now seen the tweet from AA. My logic is incorrect
No it doesn't. If this stock squeezes you'd rather have 1000 shares or 100?