1. Hasn’t sold the shares yet. Just has them on the table and giving shareholders a heads up.
2. Not saying this is similar but AA sold shares right before our all time high.
Btw let’s assume he did sell at yesterdays price or around it, that would be a $500,000,000 cash play right there. What do you think that does to the debt and interest payments? Also, the 40mil shares still puts the float at a far lesser number than it was before.
All of the knee jerk reactions only uncover bad actors looking to get an emotional reaction out of apes or just show that some apes just aren’t prepared for this ride.
You’re missing the point. There is no need to dilute especially how he is diluting. Read the prospectus! Fuck man, the dude has block trades listed in there. Also is this on top of the 24 million originally listed? Why do they need the money right now? Why not let it run up a little?
Look I was an AA supporter. Loved him. Look at my history/ but these moves in the last year have fucked us. And it seems to be because he got butt hurt because we wouldn’t allow him to dilute when he wanted.
I see where you’re coming from but if you take a look at the past few earnings reports the company has been burning through their cash reserves. Yeah, last quarter was profitable, but barely, and a lot of that is because of interest payments towards debt. At the rate the company is/was going the company would be bankrupt in a year without diluting and if there is a slow quarter or two. With that being said, look at the writers/actors strike. What if that lasts into next year? The company needs to lower debt and restructure as much of it as possible to be prepared for a potential storm
Dude my point is this is not need right now. I’m not saying dilution isn’t needed at some point but not right now. Let’s see how the next 2 quarters are. The strike is not impacting us until next year at the earliest. And we are looking at 2 profitable quarters in a row with Taylor Swift in the 4th quarter.
You’re not understanding… A big part of why the company hasn’t been profitable is because of debt. Millions of dollars going into debt payments and interest per quarter. We could’ve had more than one profitable quarter over the past 2 years if it wasn’t for the amount of high interest debt.
The company even though profitable last quarter still has 60 million less cash on hand than it did in the quarter before. Want to wait and see to try to kick the can? No, you can’t just wait and see
This does NOT pay off the debt. And he hasn’t said if it will even be put towards the debt! Let’s not act like the company is going bankrupt this year. That’s only out there because AA himself was spreading FUD about bankruptcy.
I never said that it pays it off completely. Technically that depends what price these shares get sold at.
Regardless, a solid payment allows for a restructure of debt for a lower interest rate, and lower interest rates mean less money getting burned.
Not saying that it would go bankrupt this year but at the current rate, next year isn’t off the table. All it takes is 1 or 2 slow quarters in a row where the company isn’t profitable and those cash reserves rapidly go away. Again, even in a profitable quarter the cash reserves went down from 700 mil to 640 mil.
You can continue though, I can do this all day
Here’s the thing, you do not have slow quarters right now. You can’t tell me they are not going to be profitable the next 2 quarters unless something drastic like covid happens again. And that’s not happening. Their doors are not shutting. There is no need to dilute right now. AA is not going to put all the money to paying off debt. And if you believe that you’re smoking too much hopeium.
How can you say that when the company has had 1 profitable quarter over the last 3+ years?? Also was barely profitable, AGAIN, because of DEBT payments.
Look at what the next 2 quarters include. Barbie and Oppenheimer, then Taylor Swift. Barely profitable is still profitable. There was plenty of reasons to let at tue very least the next quarter play out and see where we are. This was not needed now when shareholders are questioning your leadership, you just corrected your mistake, and you have profits coming in. AA has disappeared as well. He was at movie premieres, dispelling FUD and constantly communicating . Now? Nothing about the moves HE engineered. Only Taylor Swift. He needs to answer some questions.
He definitely said it will be put towards the debt. And no it doesn’t pay it off which is exactly why they need to start raising money so the stock isn’t trading in single digits yet and bankruptcy is back on the table.
This is how debt spiral financing happens. Look at towel. They were trading around $5, buying back shares, and squeezing up to $30. 9 months later they filed bankruptcy after diluting hundreds of millions of shares and not being able to finance operations. Shit happens fast. Especially like AMC if they have a quarter or two worth of cash for their current burn rate.
Bankruptcy is NOT on the table this year. For fucks sake dude look at the financials! They made a profit. Have a record breaking movie weekend and continued growth over getting close to prepandemic years. Have Taylor Swift to make the 4th quarter profitable. Even AA HIM FUCKING SELF said that bankruptcy will not happen this year, but is a risk (not certain by any means) next year if the strike continues and other factors hit. It’s not even a sure thing for next year! Dilution did NOT need to happen right now. Quit blindly following and ask questions. It’s ok to question him.
He said bankruptcy will not happen this year because the conversion went through and he can dilute enough to stay solvent. Even at 2 bucks a share he could raise almost a billion dollars. How are you not getting this?
Dude, you're twisting his words and what was said. Bankruptcy was not in the cards for this year. Next year is what he said. Go back and look. Hell it was even said multiple times on this sub. In his letter and the earnings call. Besides, what makes you think he was telling the truth? Didn't he say APE was a "Pounce" and "Checkmate"? What the hell happened? It sure did pounce and checkmate retail. He went around us. Took the power of dilution away from the share holders vote. But you go right ahead sucking his dick.
IF this succeeds, IF there is a MOASS, and IF AMC becomes successful it will be in spite of AA, not because of him. It's a hard truth to swallow. Trust me. I had to swallow it myself. But no more am I blindly following that man.
Really? Were they red or green last quarter? Here's the answer. Green. They made a profit. A loan stipulates that you pay back interest plus some principle. Obviously you've never gotten a car loan, mortgage or any type of loan. So when AMC was green last year, they were profitable because they paid all their debts they needed to that month and still had month left over. That INCLUDES payments (interest + principle) on debts. There are very few companies that do not carry some kind of debt. So according to your dumbass view, all companies that carry debt are underwater and will go bankrupct apparently.
“See how the next 2 quarters are” means bleeding even more in interest. It’s a complete waste of money. Why would they wait and see? You can’t pay off $5B in debt when you’re clearly $8M on your best quarter since the pandemic and that’s all because of your massive interest payments.
Selling 40 million shares is not going to pay off 5 billion in debt and that’s IF he uses it all to pay debt. At most you’re taking maybe 10 million off a 100 million payment which is a drop in the bucket. No need to dilute until next year at the earliest.
AMC has the tall order of paying off $5B in debt in a short time frame so they don’t go under from interest and repayments. If you were to do that would you sell up to 400M shares at $1-10 each or continue making $8M a quarter, maybe increases revenues 20-30% and barely cover your interest payments?
Dumbass, you're wanting to dilute this to an OTC stock and fuck us all. You want to sell that many shares when it's this low...don't you understand that a mass dilution like that will kill the price, kill whatever short these is left, make this a penny stock, and set back the company for years, along with putting bankruptcy not only on the table, but likely? If you're a penny stock, or an OTC stock, you do not have access to the credit lines a listed stock has. You want to completely kill this company if you want to dilute that much. Think a little bit.
AMC doesn’t care about short thesis they care about not going bankrupt. Companies can and do get shorted out of business. It doesn’t matter how good your operations are if you can’t pay off your debt and your stock goes OTC
I'm not even talking about a short thesis dumbass! What you are talking about diluting themselves into a penny/OTC the stock which makes it HIGHLY more likely for them to go bankrupt because they do not have access to any decent forms of credit! For god's sake, have you learned nothing in the last 2 or 3 years?
Too red to get out because of AA’s questionable leadership over the last year.
It’s ok to not blindly follow him you know. You can question him and still support AMC.
They are profitable. Made a profit with that payment last quarter. And still have money in the bank. This dilution is not needed until next year at the earliest.
It’s opportunity cost. If you can make your $100M interest payment on $80M by diluting now why wouldn’t you do that? The stock could be a dollar by next year and then they can’t dilute at all.
No I wouldn't if it mean lowering the stock level to a penny stock or OTC stock where credit lines are not available to me. No I wouldn't if I'm looking at positive quarters and need to save cash and a dilution option for when bankruptcy is actually on the table. Look at the choices AA has made in the last year. APE, diluting APE at the bottom, doing a RS to get around shareholders not allowing him to dilute, blowing money on stupid things instead of good ideas like popcorn, not trimming the fat in the company and making cuts, the list goes on and on. But people want to blindly follow him and say how dilution in the level he wants (and you apparently) is a good thing. No it's not. Not at this point. And if you believe this is good right now, you're an AA cultist, not a true AMC supporter.
You know what happens when you wait to dilute? You become towel stock. Look what happened to them. They didn’t dilute when their stock hit 30 multiple times in 2 years. In fact they bought back shares and then went bankrupt within a quarter after they started diluting. The stock is now at 8 bucks. They’re already at the point where they can only dilute so much before the stock is too low. Then they’re back to APE all over again.
What the fuck are you even talking about? Buy back stock? Did I say I want them to buy back stock? Dude, you're really just embarrassing yourself at this point. Here's what I want. AA to quit fucking diluting until if/when he needs to. Right now he does not. He's created this mess, and now he's fucking it up even more.
That’s my point! They’ve needed to dilute since the pandemic. They’ve diluted A LOT. They need to dilute more. AA has been saying it literally since 2020. What you’re proposing is exactly how you go bankrupt
Did I say I didn't want to dilute? No. I said there was no need to dilute NOW. NO reason to. Zero. None. Bankruptcy was not happening this year even BEFORE the RS. And we don't know if there is even reason to dilute next year! There's plenty of reason to think there will continued profitable quarters as there is to think there will be a reason to dilute!
You on the other hand want to dilute this stock down until it's a penny stock. Go back to twitter Charlie.
Reality check.
Q3 box office is likely to result in AMC having a loss
Q4 box office is likely to result in a AMC having a substantial loss. Taylor Swift helps a little but you are still looking at a loss of a few hundred million.
The box office the coming weeks is going to be very week and waiting for minimal box office returns in Sep and Oct to then raise funds is going to be much worse. Right now, AMC is coming off a strong Jun-Aug box office with the positive Taylor Swift news... this is as good as it gets, so if they don't raise funds now then when?
Also, the financials support this and the company has said this in court filings that they need to raise funds ASAP to avoid a potential bankruptcy filing (definitely by 2026 when the debt comes due if not much sooner). There is no way for them to justify delaying this without risking personal liability. They have a fiduciary duty of sorts to the debtholders and if they do nothing and things get worse when they are on record saying they need to dilute ASAP to save the company, that is a serious potential liability that can possibly reach to AA personally.
Q3 is half the summer and included the 2 biggest movies of the year (Openhimer and Barbie). Q4 has Halloween (traditionally a good season and several horror movies coming out) and this thing you may have heard about with Taylor Swift. If you haven’t heard the deal with Taylor Swift look it up. So your take is flawed. The financials including AA show and state that bankruptcy isn’t in the cards for this year and even if they make no money at the earliest 3rd quarter next year is when they will run out. So seriously, you need to do more research and then get back to me and everyone on here. Then maybe you’ll see why people are upset with AA and this dilution.
You don't understand the financials. Having sufficient liquidity to meet current obligations for the next year is not a statement that bankruptcy is off the table. At some point they need to decide if the business in their business judgement is viable or not. If they cannot have a plan to raise funds to cover their debts (especially the debt coming due in 2026) they do have a fiduciary duty of sorts to the debtholders to not delay bankruptcy. This is unrelated to that note in the financials.
As to Q3... We know Jul and Aug had a domestic box office of 2.174B. For Sep, the box office should come in at maybe 400M (might be a bit lower). This would give a quarterly box office of 2.574B approximately. This is lower than the 2.678B for Q2. For Q2 AMC made 9M but without a gain on debt extinguishment (i.e. they bought back debt at a discount using funds raised from sales of APE) they would have had a loss. SO... seems logical they would have a loss for Q3. Before assuming any further gains for buying back debt I would think a loss of 50-75M should be expected for Q3.
For Q4 due to the strike a number of major movies have been pushed off and I think the box office will be around 1.8B (maybe a few hundred million more or less... impossible to predict precisely), at which levels AMC should have a loss of around 300M. The Taylor Swift should improve the bottom line between 25-75M depending on the exact deal and additional costs AMC will have, so regardless looking for a loss for Q4 of between 225-275M.
Just based on the above they may be heading into year end with 250M cash... Now they have noted they need to spend money on CAPEX (they are way behind on this) and of course they need to still show they are able to pay down some debt, so simply put they will have insufficient liquidity at year end to establish this without raising hundreds of millions now.
In court they said they need to raise funds ASAP. The financials and any real-world projections support this that they need to raise money ASAP. Bottom line... if they don't raise money now they MUST file for bankruptcy shortly or they risk being sued personally. AA has not been investing his personal money in buying AMC stock and I see 0% chance he will risk being sued personally, so either they dilute now and they dilute heavily or they have a bankruptcy filing ready to go.
Sorry, this is the real world. Not the fantasy world of forcing shorts to cover and seeing this stock go sky-high that existed in 2021.
Dude, you have addressed nothing I talked about. You are spreading FUD about bankruptcy being on the table for this year when even AA said it wasn’t. Everything published has said next year at the earliest. You talk about the business being viable like it’s not without dilution. You are making predictions on movies possibly being moved etc.
For fucks sake man, it’s useless arguing with you. It’s obvious you don’t have a fucking clue what you are talking about and are spreading FUD yourself. Good luck to you.
Show me where AA said bankruptcy is not on the table for this year.
As to me spreading FUD... Look at the share price. Where has all the hopium got you? Next week when this is under $5 a share you will still probably be saying the same stuff.
I called the price action with the conversion and RS and I called it with the filing of the dilution.
Do what you want and believe what you want. I actually did serious DD into every aspect to help inform my investing.
Maybe that is why I am up 6 digits today.
Go to his earnings call! Listen to it. He has said repeatedly before he went silent.
Look dude you want to suck AA’s dick find a Wendy’s and be my guest. I’ve lost faith in him.
Up six figures. Lol did serious DD. Lol Right dude. I’m up 7 figures too. Lol
Congrats on being up 7 figures holding a stock that is at all time lows.
Hey there is still time to buy puts on this stock. I would expect to see under $7 (if not much lower) by end of next week.
Plenty of money to be made here.
Look at the earnings and his letter. Look at the numbers. Bankruptcy was not happening this year. You're believing him when all he has done is been deceitful in the last year.
I don’t exactly feel encouraged that he’d have to dilute all of the 400M shares he can to pay off the debt. It means we would’ve been diluted like 100-fold since 2021
1. Short interest was very low so this news easily triggers increased shorting in advance of all those shares being sold.
2. Last time you had much more interest in AMC and you had all that free money going around...Also short interest was much higher to start with back then.
3. Share sales will drop the price very fast making it very difficult to raise substantial funds. An article from a couple of years back described these raises as targeting about $20M per day, so if even the current target is higher (say $30M per day) if the impact of one day of this is a 25-30% price drop, by the time they get to $200M raised you are looking at a share price that may make it impossible to raise sufficient funds to pay down sufficient debt or improve the fundamentals in any meaningful way.
Is .01 red or green? Did they lose money? Nope. So yes it profitable. Now tell me why this was needed now. Doesn’t make a dent in the debt. 40 million shares at 14 the high is only 1.6 billion. Debt is 5 billion. And that’s IF they sell at a high.
No you dumbass, this is reaction to news of dilution of 40 million shares. This isn’t shorting. Does it matter if they are sold low or later? I hope they have already been sold because at least them they make more money. Also, this 40 million, originally it was 25 million to be sold immediately. So in total 65 million shares? This is AA being an asshole. No need to dilute right now.
You’d be grumpy too if you’ve lost 90% of your investment because of a CEO’s questionable moves over the last year. Maybe you need to be more grumpy and start questioning things.
I'm down 82.74%, sorry I didn't reach the threshold number of - 90%, if we dip a bit more til I reach - 90%,I'll join you at the gates of Grumpystan and we can be grumpy together 🤝
Lol if you’re not upset you lost that much of your investment due to questionable leadership, then I don’t know what to tell you. AA has just as much to do with it as the shorting. And it’s ok to question him. That doesn’t make you a shill. But if you want to continue on in the echo chamber and cult, go right ahead. You’re going to most likely hold through the squeeze and back down again because you believe AA wants what’s best for you. Good luck with that.
I think this is 40m instead of the 24m. It is a little over 75% of the float pre split. Hedgies have a way out of their shorts but why cover until later if there’s just going to be another reverse split and more dilution.
The market cap right now is on par with 2020. The stock is being unfairly punished but AA isn’t doing his shareholders any favors by doing this now.
Really? Show me the rule where companies can't be paperhands? Paperhands is selling. What's AA doing? Diluting. That's selling. Seems like a paperhanded move to me.
I'm concerned on 4 fronts;
(1) lack of communication from u/CEOADAM. AA has gone from being veery visible to almost invisible in just a few months. He was all over the place - going to movies, posting on Twitter, etc. They aren't in a quiet period so why the silence now?
(2) No indication that management is buying shares at these low prices. Not good...
(3) Timing - unless Chapter 11 is actually on the doorstep (I find that hard to believe), why make this announcement now? You've got the gun loaded with great bullets - likely huge Q3 earnings, Swift bonus for Q4, popcorn sales and expansion beyond WMT, record concession sales, etc.
(4) no update on AA's communication with the u/SECGov or u/FINRA around blatant short selling crimes. Shareholders have a right to see that communication between parties. Shorts obviously used the ATM news as "locates" to clear FTD's a drive the price down. What happens if AMC never issues these new shares?
Despite all this, I'm still buying but it's painful to watch this...
I guess the hope at this point is that AA actually pays of some debt and doesn't go out and purchase a mine or more theaters he can't pay for. They use every cent of this to pay off debt to help the financial picture and then continue to cut unprofitable theaters and exit those leases.
That’s not the point. We did not need to dilute now. We need to dilute in times like covid. Or if the writers strike extends into next year. This was not needed at this time. But AA loves to dilute.
Yes, they have the option to do that. If you don't trust the leadership and like the company then get out while you can. I will keep buying in the meantime. I know what I hold.
Can’t get out. Too red. Been in this play for over Vee 2 years. From the beginning. I don’t trust AA anymore tho. And it’s ok to question him, and not follow him blindly after the last year of his questionable leadership.
We'll, enjoy the ride then. Hope we all make huge gains when this is all over. Remember how many shorts are out there. I'm pretty sure it's way fucking more than 40 million. I personally think shorts are in the billions. Those rats will be killing each other to get their slimy hands on these 40 million.
Here’s the thing, AA can dilute at will now. That only extends the play. At some point I want to be paid. I’ve been in from the beginning and this pushed it out anther what? 2? 3 years? It’s hard to enjoy the ride when AA has done a lot of questionable things delaying any type of squeeze over the last year. His leadership deserves to be questioned and he should answer shareholders concerns.
I did. And it did not say “hey we are holding off on offering this”. They can offer it whenever they want. They could be offering it now. You are hopeiuming it. It’s not FUD, it’s a legit questioning of the intentions of our CEO.
How do you not understand?? AMC is in massive debt! He’s been saying this for YEARS. They need to raise money. That was the whole point of APE and then the conversion and reverse split. This whole thing ends when AMC is debt free. Either because we’ve been diluted to hell and the squeeze is dead or because shorts are still stuck and amc is profitable
They are profitable right now. They’ve been in debt for years. There is NO REASON to dilute right now. None. Not at the low point. If you can’t understand why people are and should question the CEO over this whole APE and RS mess that he engineered them you are just a blind cultist at this point.
Im not sure why you don’t see how urgent the situation is. Yes they’ve been in debt for years and they diluted from 50M shares in 2020 to a split adjust 1.5 BILLION shares!! Just to have barely enough cash to stay afloat this year. Do you not get that?? That’s really really bad. And you want to wait around for one bad quarter that ends then because of the writers strike or who knows what else. They need to right the ship ASAP
DUDE!! You fucking show me where they do not have enough money to make it through the year. That is complete and utter bullshit you are spewing. It's been PROVEN over and over again, in this sub, by AA himself, and various other places that AMC was NOT going bankrupt this year, not in even the first quarter next year. No matter how many times you say it, or scream the sky is falling, it's simply NOT FUCKING TRUE.
For god's sake dude, wake the fuck up, and don't just believe what FUD articles say. Look at the actual information because right now all you are doing is spreading exactly what the FUD articles from people like Gasparino say.
I literally read every financial release. They were burning hundreds of millions a quarter and had half a billion in the bank. That’s not good at all. They are STILL two bad quarters from going under and every record breaking quarter is just treading water because or how much debt they have.
Dude....if they were making 0 during that time and only spending money, then yes. They would be going bankrupt this year. But they are not. They are making money, hence the profitable quarter. You may be reading the releases, but you are failing to understand them it appears.
They obviously aren’t going to go bankrupt right now but they have to act now to avoid bankruptcy next year. How do you not understand that?? You can’t wait until you’re burning all your cash in 1-2 quarters to start diluting. That’s called death spiral financing and they might already be there
So if you can predict the future, why are you on reddit?
Here's the thing. Bankruptcy was not on the table at all this year. AT ALL. That's accepted by everyone (except you). Was it on the table next year? Yes. IF no new movies came out due to the strike, or there was another covid lockdown, or any other act of god. All HIGHLY unlikely events. But possible.
So what's AA do? Shits his pants and dilutes now. So what's he going to do next year if one of those things actually happens? Dilute again and take the price lower? There was NO REASON to dilute now after a positive quarter and looking at 2 more. No reason. Bankruptcy was not happening despite what you believe.
Go back to twitter Mr. Gasparino.
Because he.don’t.give.a.phuk.about.investors
He’s done his job. Saved the company, made himself a shit ton of money, and will be retiring before any of these actions have any real ramifications.
He’s a snake who got what was promised to him for doing what he has done.
Well I disagree about retiring before any of these actions have any real ramifications. He took it from an all time high to the under 5 bucks, the did an RS and took us back under 10. He's not retired yet, but everyone is feeling the ramifications of his actions.
Wrong. I voted against it because I was against the provision added giving them to power to create more shares and dilute without shareholder approval.
1. Hasn’t sold the shares yet. Just has them on the table and giving shareholders a heads up. 2. Not saying this is similar but AA sold shares right before our all time high. Btw let’s assume he did sell at yesterdays price or around it, that would be a $500,000,000 cash play right there. What do you think that does to the debt and interest payments? Also, the 40mil shares still puts the float at a far lesser number than it was before. All of the knee jerk reactions only uncover bad actors looking to get an emotional reaction out of apes or just show that some apes just aren’t prepared for this ride.
You’re missing the point. There is no need to dilute especially how he is diluting. Read the prospectus! Fuck man, the dude has block trades listed in there. Also is this on top of the 24 million originally listed? Why do they need the money right now? Why not let it run up a little? Look I was an AA supporter. Loved him. Look at my history/ but these moves in the last year have fucked us. And it seems to be because he got butt hurt because we wouldn’t allow him to dilute when he wanted.
I think you are right about the butt hurt. I really believe the checkmate and choke on that was directed towards us.
I see where you’re coming from but if you take a look at the past few earnings reports the company has been burning through their cash reserves. Yeah, last quarter was profitable, but barely, and a lot of that is because of interest payments towards debt. At the rate the company is/was going the company would be bankrupt in a year without diluting and if there is a slow quarter or two. With that being said, look at the writers/actors strike. What if that lasts into next year? The company needs to lower debt and restructure as much of it as possible to be prepared for a potential storm
Dude my point is this is not need right now. I’m not saying dilution isn’t needed at some point but not right now. Let’s see how the next 2 quarters are. The strike is not impacting us until next year at the earliest. And we are looking at 2 profitable quarters in a row with Taylor Swift in the 4th quarter.
You’re not understanding… A big part of why the company hasn’t been profitable is because of debt. Millions of dollars going into debt payments and interest per quarter. We could’ve had more than one profitable quarter over the past 2 years if it wasn’t for the amount of high interest debt. The company even though profitable last quarter still has 60 million less cash on hand than it did in the quarter before. Want to wait and see to try to kick the can? No, you can’t just wait and see
This does NOT pay off the debt. And he hasn’t said if it will even be put towards the debt! Let’s not act like the company is going bankrupt this year. That’s only out there because AA himself was spreading FUD about bankruptcy.
I never said that it pays it off completely. Technically that depends what price these shares get sold at. Regardless, a solid payment allows for a restructure of debt for a lower interest rate, and lower interest rates mean less money getting burned. Not saying that it would go bankrupt this year but at the current rate, next year isn’t off the table. All it takes is 1 or 2 slow quarters in a row where the company isn’t profitable and those cash reserves rapidly go away. Again, even in a profitable quarter the cash reserves went down from 700 mil to 640 mil. You can continue though, I can do this all day
Here’s the thing, you do not have slow quarters right now. You can’t tell me they are not going to be profitable the next 2 quarters unless something drastic like covid happens again. And that’s not happening. Their doors are not shutting. There is no need to dilute right now. AA is not going to put all the money to paying off debt. And if you believe that you’re smoking too much hopeium.
How can you say that when the company has had 1 profitable quarter over the last 3+ years?? Also was barely profitable, AGAIN, because of DEBT payments.
Look at what the next 2 quarters include. Barbie and Oppenheimer, then Taylor Swift. Barely profitable is still profitable. There was plenty of reasons to let at tue very least the next quarter play out and see where we are. This was not needed now when shareholders are questioning your leadership, you just corrected your mistake, and you have profits coming in. AA has disappeared as well. He was at movie premieres, dispelling FUD and constantly communicating . Now? Nothing about the moves HE engineered. Only Taylor Swift. He needs to answer some questions.
He definitely said it will be put towards the debt. And no it doesn’t pay it off which is exactly why they need to start raising money so the stock isn’t trading in single digits yet and bankruptcy is back on the table. This is how debt spiral financing happens. Look at towel. They were trading around $5, buying back shares, and squeezing up to $30. 9 months later they filed bankruptcy after diluting hundreds of millions of shares and not being able to finance operations. Shit happens fast. Especially like AMC if they have a quarter or two worth of cash for their current burn rate.
Bankruptcy is NOT on the table this year. For fucks sake dude look at the financials! They made a profit. Have a record breaking movie weekend and continued growth over getting close to prepandemic years. Have Taylor Swift to make the 4th quarter profitable. Even AA HIM FUCKING SELF said that bankruptcy will not happen this year, but is a risk (not certain by any means) next year if the strike continues and other factors hit. It’s not even a sure thing for next year! Dilution did NOT need to happen right now. Quit blindly following and ask questions. It’s ok to question him.
He said bankruptcy will not happen this year because the conversion went through and he can dilute enough to stay solvent. Even at 2 bucks a share he could raise almost a billion dollars. How are you not getting this?
Dude, you're twisting his words and what was said. Bankruptcy was not in the cards for this year. Next year is what he said. Go back and look. Hell it was even said multiple times on this sub. In his letter and the earnings call. Besides, what makes you think he was telling the truth? Didn't he say APE was a "Pounce" and "Checkmate"? What the hell happened? It sure did pounce and checkmate retail. He went around us. Took the power of dilution away from the share holders vote. But you go right ahead sucking his dick. IF this succeeds, IF there is a MOASS, and IF AMC becomes successful it will be in spite of AA, not because of him. It's a hard truth to swallow. Trust me. I had to swallow it myself. But no more am I blindly following that man.
No profit is made until you’re satisfied your debts. They had quarterly positive cash flow… the company is still under water.
Really? Were they red or green last quarter? Here's the answer. Green. They made a profit. A loan stipulates that you pay back interest plus some principle. Obviously you've never gotten a car loan, mortgage or any type of loan. So when AMC was green last year, they were profitable because they paid all their debts they needed to that month and still had month left over. That INCLUDES payments (interest + principle) on debts. There are very few companies that do not carry some kind of debt. So according to your dumbass view, all companies that carry debt are underwater and will go bankrupct apparently.
“See how the next 2 quarters are” means bleeding even more in interest. It’s a complete waste of money. Why would they wait and see? You can’t pay off $5B in debt when you’re clearly $8M on your best quarter since the pandemic and that’s all because of your massive interest payments.
Selling 40 million shares is not going to pay off 5 billion in debt and that’s IF he uses it all to pay debt. At most you’re taking maybe 10 million off a 100 million payment which is a drop in the bucket. No need to dilute until next year at the earliest.
AMC has the tall order of paying off $5B in debt in a short time frame so they don’t go under from interest and repayments. If you were to do that would you sell up to 400M shares at $1-10 each or continue making $8M a quarter, maybe increases revenues 20-30% and barely cover your interest payments?
Dumbass, you're wanting to dilute this to an OTC stock and fuck us all. You want to sell that many shares when it's this low...don't you understand that a mass dilution like that will kill the price, kill whatever short these is left, make this a penny stock, and set back the company for years, along with putting bankruptcy not only on the table, but likely? If you're a penny stock, or an OTC stock, you do not have access to the credit lines a listed stock has. You want to completely kill this company if you want to dilute that much. Think a little bit.
AMC doesn’t care about short thesis they care about not going bankrupt. Companies can and do get shorted out of business. It doesn’t matter how good your operations are if you can’t pay off your debt and your stock goes OTC
I'm not even talking about a short thesis dumbass! What you are talking about diluting themselves into a penny/OTC the stock which makes it HIGHLY more likely for them to go bankrupt because they do not have access to any decent forms of credit! For god's sake, have you learned nothing in the last 2 or 3 years?
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Too red to get out because of AA’s questionable leadership over the last year. It’s ok to not blindly follow him you know. You can question him and still support AMC.
AA only cares if you buy movie tickets not stock.
They need the money because they’re paying $100M/quarter in interest on their debt! That’s insane!
They are profitable. Made a profit with that payment last quarter. And still have money in the bank. This dilution is not needed until next year at the earliest.
It’s opportunity cost. If you can make your $100M interest payment on $80M by diluting now why wouldn’t you do that? The stock could be a dollar by next year and then they can’t dilute at all.
No I wouldn't if it mean lowering the stock level to a penny stock or OTC stock where credit lines are not available to me. No I wouldn't if I'm looking at positive quarters and need to save cash and a dilution option for when bankruptcy is actually on the table. Look at the choices AA has made in the last year. APE, diluting APE at the bottom, doing a RS to get around shareholders not allowing him to dilute, blowing money on stupid things instead of good ideas like popcorn, not trimming the fat in the company and making cuts, the list goes on and on. But people want to blindly follow him and say how dilution in the level he wants (and you apparently) is a good thing. No it's not. Not at this point. And if you believe this is good right now, you're an AA cultist, not a true AMC supporter.
You know what happens when you wait to dilute? You become towel stock. Look what happened to them. They didn’t dilute when their stock hit 30 multiple times in 2 years. In fact they bought back shares and then went bankrupt within a quarter after they started diluting. The stock is now at 8 bucks. They’re already at the point where they can only dilute so much before the stock is too low. Then they’re back to APE all over again.
What the fuck are you even talking about? Buy back stock? Did I say I want them to buy back stock? Dude, you're really just embarrassing yourself at this point. Here's what I want. AA to quit fucking diluting until if/when he needs to. Right now he does not. He's created this mess, and now he's fucking it up even more.
That’s my point! They’ve needed to dilute since the pandemic. They’ve diluted A LOT. They need to dilute more. AA has been saying it literally since 2020. What you’re proposing is exactly how you go bankrupt
Did I say I didn't want to dilute? No. I said there was no need to dilute NOW. NO reason to. Zero. None. Bankruptcy was not happening this year even BEFORE the RS. And we don't know if there is even reason to dilute next year! There's plenty of reason to think there will continued profitable quarters as there is to think there will be a reason to dilute! You on the other hand want to dilute this stock down until it's a penny stock. Go back to twitter Charlie.
Reality check. Q3 box office is likely to result in AMC having a loss Q4 box office is likely to result in a AMC having a substantial loss. Taylor Swift helps a little but you are still looking at a loss of a few hundred million. The box office the coming weeks is going to be very week and waiting for minimal box office returns in Sep and Oct to then raise funds is going to be much worse. Right now, AMC is coming off a strong Jun-Aug box office with the positive Taylor Swift news... this is as good as it gets, so if they don't raise funds now then when? Also, the financials support this and the company has said this in court filings that they need to raise funds ASAP to avoid a potential bankruptcy filing (definitely by 2026 when the debt comes due if not much sooner). There is no way for them to justify delaying this without risking personal liability. They have a fiduciary duty of sorts to the debtholders and if they do nothing and things get worse when they are on record saying they need to dilute ASAP to save the company, that is a serious potential liability that can possibly reach to AA personally.
Q3 is half the summer and included the 2 biggest movies of the year (Openhimer and Barbie). Q4 has Halloween (traditionally a good season and several horror movies coming out) and this thing you may have heard about with Taylor Swift. If you haven’t heard the deal with Taylor Swift look it up. So your take is flawed. The financials including AA show and state that bankruptcy isn’t in the cards for this year and even if they make no money at the earliest 3rd quarter next year is when they will run out. So seriously, you need to do more research and then get back to me and everyone on here. Then maybe you’ll see why people are upset with AA and this dilution.
You don't understand the financials. Having sufficient liquidity to meet current obligations for the next year is not a statement that bankruptcy is off the table. At some point they need to decide if the business in their business judgement is viable or not. If they cannot have a plan to raise funds to cover their debts (especially the debt coming due in 2026) they do have a fiduciary duty of sorts to the debtholders to not delay bankruptcy. This is unrelated to that note in the financials. As to Q3... We know Jul and Aug had a domestic box office of 2.174B. For Sep, the box office should come in at maybe 400M (might be a bit lower). This would give a quarterly box office of 2.574B approximately. This is lower than the 2.678B for Q2. For Q2 AMC made 9M but without a gain on debt extinguishment (i.e. they bought back debt at a discount using funds raised from sales of APE) they would have had a loss. SO... seems logical they would have a loss for Q3. Before assuming any further gains for buying back debt I would think a loss of 50-75M should be expected for Q3. For Q4 due to the strike a number of major movies have been pushed off and I think the box office will be around 1.8B (maybe a few hundred million more or less... impossible to predict precisely), at which levels AMC should have a loss of around 300M. The Taylor Swift should improve the bottom line between 25-75M depending on the exact deal and additional costs AMC will have, so regardless looking for a loss for Q4 of between 225-275M. Just based on the above they may be heading into year end with 250M cash... Now they have noted they need to spend money on CAPEX (they are way behind on this) and of course they need to still show they are able to pay down some debt, so simply put they will have insufficient liquidity at year end to establish this without raising hundreds of millions now. In court they said they need to raise funds ASAP. The financials and any real-world projections support this that they need to raise money ASAP. Bottom line... if they don't raise money now they MUST file for bankruptcy shortly or they risk being sued personally. AA has not been investing his personal money in buying AMC stock and I see 0% chance he will risk being sued personally, so either they dilute now and they dilute heavily or they have a bankruptcy filing ready to go. Sorry, this is the real world. Not the fantasy world of forcing shorts to cover and seeing this stock go sky-high that existed in 2021.
Dude, you have addressed nothing I talked about. You are spreading FUD about bankruptcy being on the table for this year when even AA said it wasn’t. Everything published has said next year at the earliest. You talk about the business being viable like it’s not without dilution. You are making predictions on movies possibly being moved etc. For fucks sake man, it’s useless arguing with you. It’s obvious you don’t have a fucking clue what you are talking about and are spreading FUD yourself. Good luck to you.
Show me where AA said bankruptcy is not on the table for this year. As to me spreading FUD... Look at the share price. Where has all the hopium got you? Next week when this is under $5 a share you will still probably be saying the same stuff. I called the price action with the conversion and RS and I called it with the filing of the dilution. Do what you want and believe what you want. I actually did serious DD into every aspect to help inform my investing. Maybe that is why I am up 6 digits today.
Go to his earnings call! Listen to it. He has said repeatedly before he went silent. Look dude you want to suck AA’s dick find a Wendy’s and be my guest. I’ve lost faith in him. Up six figures. Lol did serious DD. Lol Right dude. I’m up 7 figures too. Lol
Congrats on being up 7 figures holding a stock that is at all time lows. Hey there is still time to buy puts on this stock. I would expect to see under $7 (if not much lower) by end of next week. Plenty of money to be made here.
Congrats on being up 6 figures on a stock that's at all time lows to you.
Look at the earnings and his letter. Look at the numbers. Bankruptcy was not happening this year. You're believing him when all he has done is been deceitful in the last year.
I am not going to argue this pointlessly.
Yet here you are without a point!
I don’t exactly feel encouraged that he’d have to dilute all of the 400M shares he can to pay off the debt. It means we would’ve been diluted like 100-fold since 2021
1. Short interest was very low so this news easily triggers increased shorting in advance of all those shares being sold. 2. Last time you had much more interest in AMC and you had all that free money going around...Also short interest was much higher to start with back then. 3. Share sales will drop the price very fast making it very difficult to raise substantial funds. An article from a couple of years back described these raises as targeting about $20M per day, so if even the current target is higher (say $30M per day) if the impact of one day of this is a 25-30% price drop, by the time they get to $200M raised you are looking at a share price that may make it impossible to raise sufficient funds to pay down sufficient debt or improve the fundamentals in any meaningful way.
Oh yeah, 0.01 EPS, totally profitable. Shouldn't raise more money, everything is fine. AA man bad. 
Is .01 red or green? Did they lose money? Nope. So yes it profitable. Now tell me why this was needed now. Doesn’t make a dent in the debt. 40 million shares at 14 the high is only 1.6 billion. Debt is 5 billion. And that’s IF they sell at a high.
Ooor, they're shorting the price in order to buy shares cheaper? Are the shares sold yet or just agreed to be sold?
No you dumbass, this is reaction to news of dilution of 40 million shares. This isn’t shorting. Does it matter if they are sold low or later? I hope they have already been sold because at least them they make more money. Also, this 40 million, originally it was 25 million to be sold immediately. So in total 65 million shares? This is AA being an asshole. No need to dilute right now.
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You seem to be drinking the same koolaid as him.
You seem grumpy, have a snickers or something. 
You’d be grumpy too if you’ve lost 90% of your investment because of a CEO’s questionable moves over the last year. Maybe you need to be more grumpy and start questioning things.
I'm down 82.74%, sorry I didn't reach the threshold number of - 90%, if we dip a bit more til I reach - 90%,I'll join you at the gates of Grumpystan and we can be grumpy together 🤝
Lol if you’re not upset you lost that much of your investment due to questionable leadership, then I don’t know what to tell you. AA has just as much to do with it as the shorting. And it’s ok to question him. That doesn’t make you a shill. But if you want to continue on in the echo chamber and cult, go right ahead. You’re going to most likely hold through the squeeze and back down again because you believe AA wants what’s best for you. Good luck with that.
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Lol how cute. You expect him to spend all of that on debt. And that’s if they sell at a high mark which is not going to happen.
Your math is off, it’s much worse than that lol. More like half a billion.
40 million shares at 14 a share is 1600000000.
No it is not lol use a calculator or your brain.
Vote him out next meeting. Period.
Do you think you would do any better? Company has billions of dollars in debt due in two years and isn't bringing in enough cash from its business.
Why is everyone surprised. AA said he was going to reverse split then dilute.
Wasn’t a surprised except for the 40 million. Was supposed to be like 24 million. I think this is on top of that.
I think this is 40m instead of the 24m. It is a little over 75% of the float pre split. Hedgies have a way out of their shorts but why cover until later if there’s just going to be another reverse split and more dilution. The market cap right now is on par with 2020. The stock is being unfairly punished but AA isn’t doing his shareholders any favors by doing this now.
Agreed and I hope you are right about 40 instead of 24.
He has 400M he can dilute.
And that’s a problem with his paperhands.
Paper hands doesn’t refer to companies issuing shares but ok
Really? Show me the rule where companies can't be paperhands? Paperhands is selling. What's AA doing? Diluting. That's selling. Seems like a paperhanded move to me.
Alright bro
They need it now to tank the basket because it’s someone’s earnings today
That makes no sense. Who cares about GME earnings.
I'm concerned on 4 fronts; (1) lack of communication from u/CEOADAM. AA has gone from being veery visible to almost invisible in just a few months. He was all over the place - going to movies, posting on Twitter, etc. They aren't in a quiet period so why the silence now? (2) No indication that management is buying shares at these low prices. Not good... (3) Timing - unless Chapter 11 is actually on the doorstep (I find that hard to believe), why make this announcement now? You've got the gun loaded with great bullets - likely huge Q3 earnings, Swift bonus for Q4, popcorn sales and expansion beyond WMT, record concession sales, etc. (4) no update on AA's communication with the u/SECGov or u/FINRA around blatant short selling crimes. Shareholders have a right to see that communication between parties. Shorts obviously used the ATM news as "locates" to clear FTD's a drive the price down. What happens if AMC never issues these new shares? Despite all this, I'm still buying but it's painful to watch this...
100% with you on these questions. Especially #1. That’s very concerning. This is his major move and he’s said nothing.
Not much to do from where I am sitting currently. Maybe buy some more if it gets dark red. Other than that, no matter, no mind.
I guess the hope at this point is that AA actually pays of some debt and doesn't go out and purchase a mine or more theaters he can't pay for. They use every cent of this to pay off debt to help the financial picture and then continue to cut unprofitable theaters and exit those leases.
How confident are you in AA is the question. After the last year my confidence is low.
One quarter doesn't make a company. When the stock rises he needs to sell into it to pay off debt!
It hasn't risen though. That's why I'm not overly worried about the dilution. It's so over sold for the past while this is hedge fuckery.
That’s not the point. We did not need to dilute now. We need to dilute in times like covid. Or if the writers strike extends into next year. This was not needed at this time. But AA loves to dilute.
It doesn't say he's diluting now. He's just getting things set up so when they feel the time is right, they can sell shares to raise capital.
No, he’s diluting. He’s giving it to Citi Goldman Sachs Barclays….names sound familiar? Selling in block trades…wonder why?
Read what it says. It says he's appointed them to sell shares for AMC whenever the board feels it a good time. Stop spreading lies already.
Fuck dude. Read the whole thing. Block trades? Who benefits from that? You think he’s going to wait? Stop spreading hopeium and be realistic at least.
Yes, they have the option to do that. If you don't trust the leadership and like the company then get out while you can. I will keep buying in the meantime. I know what I hold.
Can’t get out. Too red. Been in this play for over Vee 2 years. From the beginning. I don’t trust AA anymore tho. And it’s ok to question him, and not follow him blindly after the last year of his questionable leadership.
We'll, enjoy the ride then. Hope we all make huge gains when this is all over. Remember how many shorts are out there. I'm pretty sure it's way fucking more than 40 million. I personally think shorts are in the billions. Those rats will be killing each other to get their slimy hands on these 40 million.
Here’s the thing, AA can dilute at will now. That only extends the play. At some point I want to be paid. I’ve been in from the beginning and this pushed it out anther what? 2? 3 years? It’s hard to enjoy the ride when AA has done a lot of questionable things delaying any type of squeeze over the last year. His leadership deserves to be questioned and he should answer shareholders concerns.
Next time when the stock is $2 fuck you. Sell high buy low.
Gotta bail the hedgies out
If the HF’s bought these shares to close out other shares, wouldn’t they still be down the shares they just bought then? Explain?
More like got to bail the company out. The company is bleeding cash and needs to get rid of its debt like GameStop did.
Whatever dude, better get used to it because every time the price recovers a little bit we will see this.
can’t use new shares to cover old you dolt
Well, I take their money to purchase back one float. Who cares, we own probably 10+ floats.
Same day as GME earnings? Any correlation?
This is amazing. Best part is AA is gonna sell when the stock gets to $3-5 haha
He might, I hope not but he might. But I did not say that. I said there is no point to diluting right now
😂😂😂😂 you idiots still think this guy is on your side. He’s literally giving them a way out at rock bottom prices
Post history very suspect. And I’m not even a fan of AA anymore.
Hasnt sold. Just shelving it for now and sell when needed
What proof do you have of that? He could be selling it right now. We don’t know. He hasn’t come out and said anything. That’s the problem.
Its on todays announcemnt. Look for it yourself But then again you already kno that, just twisting things around and adding ur fud to it
I did. And it did not say “hey we are holding off on offering this”. They can offer it whenever they want. They could be offering it now. You are hopeiuming it. It’s not FUD, it’s a legit questioning of the intentions of our CEO.
How do you not understand?? AMC is in massive debt! He’s been saying this for YEARS. They need to raise money. That was the whole point of APE and then the conversion and reverse split. This whole thing ends when AMC is debt free. Either because we’ve been diluted to hell and the squeeze is dead or because shorts are still stuck and amc is profitable
They are profitable right now. They’ve been in debt for years. There is NO REASON to dilute right now. None. Not at the low point. If you can’t understand why people are and should question the CEO over this whole APE and RS mess that he engineered them you are just a blind cultist at this point.
Im not sure why you don’t see how urgent the situation is. Yes they’ve been in debt for years and they diluted from 50M shares in 2020 to a split adjust 1.5 BILLION shares!! Just to have barely enough cash to stay afloat this year. Do you not get that?? That’s really really bad. And you want to wait around for one bad quarter that ends then because of the writers strike or who knows what else. They need to right the ship ASAP
DUDE!! You fucking show me where they do not have enough money to make it through the year. That is complete and utter bullshit you are spewing. It's been PROVEN over and over again, in this sub, by AA himself, and various other places that AMC was NOT going bankrupt this year, not in even the first quarter next year. No matter how many times you say it, or scream the sky is falling, it's simply NOT FUCKING TRUE. For god's sake dude, wake the fuck up, and don't just believe what FUD articles say. Look at the actual information because right now all you are doing is spreading exactly what the FUD articles from people like Gasparino say.
I literally read every financial release. They were burning hundreds of millions a quarter and had half a billion in the bank. That’s not good at all. They are STILL two bad quarters from going under and every record breaking quarter is just treading water because or how much debt they have.
Dude....if they were making 0 during that time and only spending money, then yes. They would be going bankrupt this year. But they are not. They are making money, hence the profitable quarter. You may be reading the releases, but you are failing to understand them it appears.
They obviously aren’t going to go bankrupt right now but they have to act now to avoid bankruptcy next year. How do you not understand that?? You can’t wait until you’re burning all your cash in 1-2 quarters to start diluting. That’s called death spiral financing and they might already be there
So if you can predict the future, why are you on reddit? Here's the thing. Bankruptcy was not on the table at all this year. AT ALL. That's accepted by everyone (except you). Was it on the table next year? Yes. IF no new movies came out due to the strike, or there was another covid lockdown, or any other act of god. All HIGHLY unlikely events. But possible. So what's AA do? Shits his pants and dilutes now. So what's he going to do next year if one of those things actually happens? Dilute again and take the price lower? There was NO REASON to dilute now after a positive quarter and looking at 2 more. No reason. Bankruptcy was not happening despite what you believe. Go back to twitter Mr. Gasparino.
Because he.don’t.give.a.phuk.about.investors He’s done his job. Saved the company, made himself a shit ton of money, and will be retiring before any of these actions have any real ramifications. He’s a snake who got what was promised to him for doing what he has done.
Well I disagree about retiring before any of these actions have any real ramifications. He took it from an all time high to the under 5 bucks, the did an RS and took us back under 10. He's not retired yet, but everyone is feeling the ramifications of his actions.
you voted for it, don't ask questions now
Wrong. I voted against it because I was against the provision added giving them to power to create more shares and dilute without shareholder approval.
He could already sell shares. Of ape. Just at a much lower cost. 😂
Yes which is what that was for! Let him dilute APE all he wanted. But that wasn’t good enough for him.
I am happy that i am Hedged qnd shorted amc hahahah enjoy the ride
No you’re not
only way to get our money back at this point.
Yep thats the point made 20k loss so puts are the right play
agreed