When is the time to sell AMC?
AMC
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Last: 3 yr ago by AgCPA95
2 hours and 4 minutes ago if you got it under $5.
DP srry
saw one reddit say alot of the shorts expire friday so to hold til then.
might want to check for accuracy though.
I am playing them with be stupid money so if I lose it all I won't be devastated
might want to check for accuracy though.
I am playing them with be stupid money so if I lose it all I won't be devastated
Weekly options expire Friday. I'm not sure why Reddit believes that it will only affect the shorts as there will be calls expiring soon, and the hedging activity (buying) of the option writers will be unwound which will lead to selling pressure on Friday. Also, anyone playing in AMC should be aware that the company has authorized to GS to sell up to 50MM shares into the market in the coming days/weeks.
Also had this news come out 2 hours ago...
AMC ENTERTAINMENT- NOTEHOLDERS ELECTED TO CONVERT ALL $600.0 MILLION OF CO'S 2.95% CONVERTIBLE SENIOR SECURED NOTES DUE 2026 INTO CLASS A COMMON STOCK
AMC ENTERTAINMENT - CONVERSION IS EXPECTED TO SETTLE ON JAN 29, 2021, WILL RESULT IN ISSUANCE OF 44.4 MILLION SHARES OF CO'S CLASS A COMMON STOCK
AMC ENTERTAINMENT - CONVERSION WILL ALSO REDUCE COMPANY'S FIRST-LIEN INDEBTEDNESS BY $600.0 MILLION
AMC ENTERTAINMENT- NOTEHOLDERS ELECTED TO CONVERT ALL $600.0 MILLION OF CO'S 2.95% CONVERTIBLE SENIOR SECURED NOTES DUE 2026 INTO CLASS A COMMON STOCK
AMC ENTERTAINMENT - CONVERSION IS EXPECTED TO SETTLE ON JAN 29, 2021, WILL RESULT IN ISSUANCE OF 44.4 MILLION SHARES OF CO'S CLASS A COMMON STOCK
AMC ENTERTAINMENT - CONVERSION WILL ALSO REDUCE COMPANY'S FIRST-LIEN INDEBTEDNESS BY $600.0 MILLION
What does this mean? Explain it like I am 5 please
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
am I wrong?
****ers.
They needed the money badly. Not so sure it's protecting the shorts as much as it is saving their own asses.Ags4DaWin said:
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
Yes. Can't nail down a good outstanding share number but have seen anything between $287 million to $330 million shares so this would dilute current shareholders by 13-15%Ags4DaWin said:
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
Yep agree. They're taking advantage of a situation for the sake of their future.
Y'all buying this big ol dip then or staying Pat with what ya got?
Bunk Moreland said:
Yep agree. They're taking advantage of a situation for the sake of their future.
Its not so much that. I was reading an article that said they are actually pretty good on capital now and with things opening back up their outlook was very positive without needing anymore infusions.
they did NOT need a cash infusion like this. protecting the shorts is their main concern but its a win-win.
They want to protect the people shorting their company.... huh?Ags4DaWin said:Bunk Moreland said:
Yep agree. They're taking advantage of a situation for the sake of their future.
Its not so much that. I was reading an article that said they are actually pretty good on capital now and with things opening back up their outlook was very positive without needing anymore infusions.
they did NOT need a cash infusion like this. protecting the shorts is their main concern but its a win-win.
What's happening this morning is Wall Street trying to shut it down. They want people to sell right now.SquareOne07 said:
Y'all buying this big ol dip then or staying Pat with what ya got?
Same thing happened yesterday morning - it'll come back up after the initial tree shake.
It has nothing to do with protecting the people attempting to short their company.
Like I said in my initial post I could be wrong.
I don't know enough about shorts to know if shorting affects the company itself.
they already diluted their shares back in November I believe. but that combined with all the acts to prevent buying until the dilution happens appears to be a concerted effort to protect the shorts.
I don't know enough about shorts to know if shorting affects the company itself.
they already diluted their shares back in November I believe. but that combined with all the acts to prevent buying until the dilution happens appears to be a concerted effort to protect the shorts.
I'll try.
In July the company issued convertible notes. A convertible note pays a reduced amount of interest but is able to be converted into common stock of the issuer at a certain ratio per $1,000 par bond, subject adjustment in the event the of a change in number of shares outstanding. The bonds that AMC issued also had a provision that they could be immediately converted into common stock should the share price reach some level above the adjusted conversion price (the indenture is available on EDGAR, but it's highly customized to this specific transaction and I'm not going to dig into all of the mechanics). With the stock run up, the lead investor decided to convert into equity. It's worth noting that the shares to be delivered are already in the market, because the bond holder is short equity (this strategy is called convertible arbitrage).
In short, this had nothing to do with the company trying to **** over retail. In this case, retail has decided to play a game with very sophisticated players without understanding all of the rules of the road. Generally speaking, it's not a good idea to try to short squeeze a company that has an at-the-market facility in place as well as convertible debt with early redemption features.
In July the company issued convertible notes. A convertible note pays a reduced amount of interest but is able to be converted into common stock of the issuer at a certain ratio per $1,000 par bond, subject adjustment in the event the of a change in number of shares outstanding. The bonds that AMC issued also had a provision that they could be immediately converted into common stock should the share price reach some level above the adjusted conversion price (the indenture is available on EDGAR, but it's highly customized to this specific transaction and I'm not going to dig into all of the mechanics). With the stock run up, the lead investor decided to convert into equity. It's worth noting that the shares to be delivered are already in the market, because the bond holder is short equity (this strategy is called convertible arbitrage).
In short, this had nothing to do with the company trying to **** over retail. In this case, retail has decided to play a game with very sophisticated players without understanding all of the rules of the road. Generally speaking, it's not a good idea to try to short squeeze a company that has an at-the-market facility in place as well as convertible debt with early redemption features.
^^^^
Thanks for the explanation and education. This makes sense.
Thanks for the explanation and education. This makes sense.
All my earnings from yesterday gone, and then some.
Is it worth putting in a little more in this dip? Any chance this explodes again tomorrow?
Is it worth putting in a little more in this dip? Any chance this explodes again tomorrow?
Anything we do at this point is akin to playing craps
Thank you! That was very helpful
Eh, screw it. Might as well go long on this one. I'll probably double up my position if it hits $8 or so.
Edit: And provided Schwab is actually allowing buy on AMC.
Edit: And provided Schwab is actually allowing buy on AMC.
Wallstreet protecting itself
Quote:
Merrill - "Due to recent volatility in certain securities and to reduce risk of market volatility, we will be placing restrictions on certain securities, including increased margin requirements and/or limiting transactions. Game Stop (GME) and AMC Entertainment Holdings (AMC) are now blocked for opening transactions and they have also been moved to a 100% margin requirement for existing positions."
Looks like buying is allowed on AMC again. Tried to put in an order at $8 but I missed that dip.
The halting is getting silly
Bought more at $7.50.
Man do I hope this bounces back...
Man do I hope this bounces back...
Ags4DaWin said:
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
Outrageous considering they are near bankruptcy.
Philip J Fry said:Ags4DaWin said:
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
Outrageous considering they are near bankruptcy.
Isn't it a great idea for the company to raise equity right now when the shares issued are worth significantly more than any fundamental would suggest? Especially when their debt previously put them at the brink of bankruptcy?
Heisenberg01 said:Philip J Fry said:Ags4DaWin said:
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
Outrageous considering they are near bankruptcy.
Isn't it a great idea for the company to raise equity right now when the shares issued are worth significantly more than any fundamental would suggest? Especially when their debt previously put them at the brink of bankruptcy?
Christopher Nolan is probably ecstatic to see AMC raise this much capital.
https://investor.amctheatres.com/newsroom/news-details/2021/AMC-Completes-At-the-Market-Equity-Program/default.aspx
They executed an offering, and retail let them get it done.
They executed an offering, and retail let them get it done.
Quote:
LEAWOOD, Kan.--(BUSINESS WIRE)-- AMC Entertainment Holdings, Inc. ("AMC" or the "Company") (NYSE:AMC) announced today that it has completed its previously announced at-the-market equity program.
In its 8-K filing with the U.S. Securities and Exchange Commission on January 25, 2021, AMC announced entry into an equity distribution agreement with respect to an additional at-the-market equity program relating to 50 million shares of its Class A common stock.
That program has now been completed. Together with the remaining shares under a prior program, since the Company's January 25, 2021 announcement, the Company has sold in aggregate 63.3 million additional shares of its Class A common stock for additional proceeds of $304.8 million.
SoupNazi2001 said:Heisenberg01 said:Philip J Fry said:Ags4DaWin said:
Looks like they are issuing more stock to dilute the market, protect the shorts, and leave the retail traders holding the bag.
am I wrong?
****ers.
Outrageous considering they are near bankruptcy.
Isn't it a great idea for the company to raise equity right now when the shares issued are worth significantly more than any fundamental would suggest? Especially when their debt previously put them at the brink of bankruptcy?
It isn't that simple. Secondary offerings are mostly sold to institutions not retail who know this price action is a sham. They would have to price a secondary offering at a huge discount and probably still couldn't execute it.
Point was that it could be a good idea from a company standpoint to raise equity and not done to screw over the retail trader. Point was not whether or not they could successfully execute the equity raise.
Here we go again
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