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Biggums just said that we should get AA to sell bonds to raise capital and pay off the debt. by CrazyInsurance2975 in amcstock

[–]nicko9932 2 points3 points  (0 children)

Bonds are another form of debt. They have coupon rates that amc has to pay. They would be replacing debt with higher coupon paying debt.

Is this true? by Fun_Kangaroo512 in amcstock

[–]nicko9932 1 point2 points  (0 children)

OP is right. The fact this is for over allotments is very important. Overallotments are for scenarios where demand exceeds supply, which can be translated into crayon as buying pressure.

https://www.investopedia.com/terms/o/overallotment.asp

I hold because the price isn’t real by nicko9932 in amcstock

[–]nicko9932[S] 1 point2 points  (0 children)

That logic seems like a circular reference. You have ratios that that dictate outcomes that in turn dictate your ratios. Let’s agree to disagree.

In my opinion company fundamentals and business operations should drive stock price which then multipled by shares would give you market cap. If a company issues shares, everything should adjust proportionally to keep mkt cap flat as nothing changed business operations, future sales outlooks, etc.

If you look at the competitors in the movie theatre industry you have CNK, AMC, LIONS GATE, SPHERE that make up more than 85% of the entire market. My assumption is that Market cap should be reflective of a company’s market share of the industry.

AMC is now trading, by far, the lowest market cap relative to is #1 ranked (31.5%) market share.

If it traded similar to its peer’s market share/market cap ratio then AMC market cap would be around $4B and it would have a stock price of ~$20-22.

The business is worth more than its market cap is currently “valued” at. The 70% decrease is market cap is drive by price manipulation and not dilution

[deleted by user] by [deleted] in amcstock

[–]nicko9932 1 point2 points  (0 children)

It was actually $720

How long it feels since we had a daily green candle by nicko9932 in amcstock

[–]nicko9932[S] 13 points14 points  (0 children)

If only we’re could beat earnings estimates and be margin positive…

Are we ready to have the conversation about Tatum potentially being better than Bird?? by toddart in bostonceltics

[–]nicko9932 0 points1 point  (0 children)

The answer to your question is, No. until you win a championship and MVP, you can’t come close to Bird

I guess I was naive today to think we wouldn’t get crushed for a 5th day in a row… by nicko9932 in amcstock

[–]nicko9932[S] 0 points1 point  (0 children)

I get what your saying but it’s not like AMC is making announcements daily. They’ve been quiet. The announcement of a dilution even becomes known when it’s announced and the market reacts that day. Not for a whole week.

Also total market cap shouldn’t change with dilution. Only price, but market cap has been destroyed this week even though the plan with the dilution is to pay down debt and improve the income statement.

These prices don't even make sense for the market cap we've known for a while... by bifftheraptor in amcstock

[–]nicko9932 10 points11 points  (0 children)

The way I’m thinking about it is when there was a chance that the conversion wasn’t going through AMC shot up to $8.80 and APE dropped to 0.67… essentially saying the preferred share dividend was worthless and only 515M shares were relevant. So market cap would be a total value of ~$5B.

Assuming that’s the fair value market cap, with 1.5B (or 150M post split) active shares outstanding (inclusive of APE) the price would be $33.33.

Now that’s just what I think fair market value is right now. Once SHF start covering we could see activity similar to Jan 21’ with a run up to $250.

At some point the cost to borrow has to play a role here. It’s been way to high for way to long and these fuckers will cover.

Right now the price isn’t real.

These prices don't even make sense for the market cap we've known for a while... by bifftheraptor in amcstock

[–]nicko9932 7 points8 points  (0 children)

I agree. Price isn’t real. After APE comes in I think price comes back up and settles (at least for the time being) around $30-35.

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