What Caught Our Attention in the Investment World? – Week of December 19-23, 2022

By Kuldip K. Ambastha

On the trading days of Thursday, December 22, 2022 and Friday, December 23, 2022, the stock tickers of AMC Entertainment Holdings, Inc. (AMC and APE), a holding company with movie theaters all over the world, posted daily returns which caught Wall Street’s attention. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of June 1-4, 2021; By Kuldip K. Ambastha.”) Specifically, AMC (Class A equity) returned -7.4% on Thursday and -10.4% on Friday, while APE (preferred equity) instead returned +75.2% on Thursday and 44.2% on Friday. A plan to raise $110 million in equity capital through APE and also administer a 1-to-10 reverse stock split caused the bifurcation of daily returns seen here. Meme stock speculators in this case became bearish on AMC and bullish on APE, simultaneously, since AMC will be diluted if a share conversion proposal to convert APE shares into AMC shares on a 1:1 basis is successful.

Keywords – AMC Entertainment Holdings, Inc., AMC Entertainment Holdings, AMC Entertainment, AMC, APE, movie, theater, Class A, preferred, equity, share, stock, conversion, meme, Reddit, r/WallStreetBets.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in AMC or APE.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.




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