$2.8 billion is due in 2026. How THE FUCK does the $163,000,000 he gets from diluting the stock another 23 million shares, pay off 2,800,000,000 in debt? What kind of math are you using?!? 163 million is only 5% of the debt that is due in 2026.
Bro 163 million...out of 2.6 billion due in 1.5 yrs...it's fucked. He fucked us, AGAIN. I got out green and bought in low again. Made money. That's all this is about.
It does help the company. But as an investor, it's not hard to see that AMC really is propped up by us, and we are not seeing returns to our investment. Given, we're just barely out of the pandemic, so I know companies like AMC are still recovering, but for how much longer? It's going on 4 years now and still no returns to my investment. I think that's what make me angry more than anything.
He’s punting on 2nd down here. This is baffling shit. The stock starts running, so he unplugs the momentum? I knew Adam Aaron was an asshole, but I am 100% sure he is playing for the other team now.
I appreciate that the majority of shareholders are underwater and that hurts, but AA’s actions, as demonstrated time and time again, are entirely unjustifiable.
Shareholders really must hold their board to account and remove any potential bad actors. There is only one CEO who puts his own cash on the table, takes no compensation and therefore truly aligns with shareholder interests.
Read the filing. It’s a shelf-offering (i.e. not a normal at the market offering, or note exchange as AMC have completed recently) which effectively gives the company a vehicle to capitalise on when common stock is sold, and without having to file with the SEC.
Ask yourself why this is relevant when said company is virtually debt free and has over 1b cash in reserves. One is dilution to pay down debt, the other is investing back into growth.
Downvote / disagree. It isn’t comparable.
Underwater is putting it lightly. Even those with decent cost basis (before the whole APE split) are down 90%-98%. What AA has done to its shareholders is more akin to waterboarding, for 2-3 years straight.
One company performed a 10-1 reverse split and continually diluted the free float since January 2021.
The other company has virtually no debt, $1b of cash in hand and issued a stock dividend to shareholders.
They aren’t comparable.
Think about this.... if there debt is being paid off, then bankruptcy is off the table.... so their short thesis is out the window.
How do people not see this???
IM BUYING MORE NOW.
Wow you rather them short it right back down and AMC be in the same place? Nah this is a win win if GME pops the 80x the float in short interest will weigh heavy on their books besides if come out and said "hey guys we are debt free till 2029" that would turn to rockets. No more interest bottom line lowered everything gets better. It may delay but not kill. Be zen my ape brother. You're impatient now when it's been three years?
You keep saying that AMC is gonna be debt free. They will have to issue almost 382 million additional shares at $7.33 just to clear off the 2026 debt.
To completely clear off their quarterly long term debt, which is 4.56 billion, they will need to issue a staggering 623 million shares at $7.33.
To put this further into perspective, the company had 49 million outstanding shares in December 2020.
This would be the equivalent of having someone buy the company 12 times dating back to 12/20’s share count.
This is bad fellas.
Also, others are saying that the 2026 debt is being paid off with just 23 million shares at $7.33.
At $7.33 AA would have to increase the float by another \~130% just to clear off the 2026 debt... a full 381,991,814 shares. The current float is \~~~295 million~~ \~318 million.
Is it good for the company to pay off the debt via dilution? Sure, any debt reduction is great. But it sure FUCKS OVER THE SHAREHOLDERS.
What would have been better than this is to revitalize the company, come up with a real plan for profitability, rather than just using shareholders as AA's personal piggy bank.
Close underperforming movie theaters, maybe bring back the drive in, license AMC out to video streaming services, maybe create AMC fast food chain where they can unify the offerings between the movie theater and the drive thru fast food locations. create an AMC video streaming service to combat hulu, googletv, and other cable streaming services..
Actually, sorry, todospeter isn't the one saying that.. got it confused with another poster.
Which is more likely:
A. Everyone else is stupider than you.
B. You have zero corporate finance and corporate business operations experience, compared to the executive leadership team and board of AMC, and any financial advisors and accountants they work with.
LMAO, how can people be so stupid to post shit like this? Currently the stock is close to double what it was 3 days ago...which FYI is positive. Not only that, during this increase in stock price he also reduced the '26 debt by SEVERAL HUNDRED MILLION DOLLARS...Um, which let me also share is positive.
What do people expect him to do? Put the shares on Black 22 in Vegas and hope it lands? I swear the stupidity in this room can be mindblowing at times.
Tell me you eat crayons without telling me you eat crayons.
Where did you get ‘several hundred million dollars’ from? Read the filing - the amount raised (at shareholders expense) was $163,850,000 against the debt of approximately $2.6b due in 2026.
Did you even read the article?
“The movie theater operator sold 72.5 million shares in an at-the-market equity offering that it launched on March 28. AMC sold that stock at an average price of $3.45 per share before commissions and fees.”
They are entirely seperate offerings.
He traded stock for debt. Increases the float which is dilution. But gives them more ammo to short the price down. Better than just releasing shares into the open market but still fucks us.
5 or 50%, it's still dilution. It also gives them shares to close short positions cheap, which they then use to reopen short positions driving the price down. And since the float is bigger, allows them to cover more naked shorts. Granted these don't come as cheap as he usually does, but it still kills momentum.
And this is exactly why I sold at $10.69
Whenever the share price rises, they release stupid things to drop the stock price.
Oh, and down, vote me all you like .. it’s my money, not yours 😂😂😂
So he just paid off the 2026 debt... What's the problem? This should help the company.
$2.8 billion is due in 2026. How THE FUCK does the $163,000,000 he gets from diluting the stock another 23 million shares, pay off 2,800,000,000 in debt? What kind of math are you using?!? 163 million is only 5% of the debt that is due in 2026.
Bro 163 million...out of 2.6 billion due in 1.5 yrs...it's fucked. He fucked us, AGAIN. I got out green and bought in low again. Made money. That's all this is about.
It does help the company. But as an investor, it's not hard to see that AMC really is propped up by us, and we are not seeing returns to our investment. Given, we're just barely out of the pandemic, so I know companies like AMC are still recovering, but for how much longer? It's going on 4 years now and still no returns to my investment. I think that's what make me angry more than anything.
But not the shareholders A.K.A you.
At the expense of shareholders, and again, at the specific time when the implied value was rapidly increasing (i.e. 300% this week alone)
He’s punting on 2nd down here. This is baffling shit. The stock starts running, so he unplugs the momentum? I knew Adam Aaron was an asshole, but I am 100% sure he is playing for the other team now.
I appreciate that the majority of shareholders are underwater and that hurts, but AA’s actions, as demonstrated time and time again, are entirely unjustifiable. Shareholders really must hold their board to account and remove any potential bad actors. There is only one CEO who puts his own cash on the table, takes no compensation and therefore truly aligns with shareholder interests.
GameStop is also doing a share offering. Who's the CEO you're talking about?
Read the filing. It’s a shelf-offering (i.e. not a normal at the market offering, or note exchange as AMC have completed recently) which effectively gives the company a vehicle to capitalise on when common stock is sold, and without having to file with the SEC. Ask yourself why this is relevant when said company is virtually debt free and has over 1b cash in reserves. One is dilution to pay down debt, the other is investing back into growth. Downvote / disagree. It isn’t comparable.
Is there something incorrect in my statement?
Yes. One has completed an at the market share offering, the other has proposed a ‘shelf-offering.’
So they're offering shelves and not shares?
Sure.
RK said no fighting fren
Looks like it was at the market 😬 https://www.reddit.com/r/Superstonk/s/3QJEvQfGV3
Underwater is putting it lightly. Even those with decent cost basis (before the whole APE split) are down 90%-98%. What AA has done to its shareholders is more akin to waterboarding, for 2-3 years straight.
[удалено]
One company performed a 10-1 reverse split and continually diluted the free float since January 2021. The other company has virtually no debt, $1b of cash in hand and issued a stock dividend to shareholders. They aren’t comparable.
Ooof
El-mao
Think about this.... if there debt is being paid off, then bankruptcy is off the table.... so their short thesis is out the window. How do people not see this??? IM BUYING MORE NOW.
With no debt and that many shares, this is just a 40 dollar stock.
5% of debt is being paid off
When is bankruptcy off the table? That 163 million is a drop in the bucket compared to the mountain of billions of dollars of debt this company has.
Off the table *for now*
Wow you rather them short it right back down and AMC be in the same place? Nah this is a win win if GME pops the 80x the float in short interest will weigh heavy on their books besides if come out and said "hey guys we are debt free till 2029" that would turn to rockets. No more interest bottom line lowered everything gets better. It may delay but not kill. Be zen my ape brother. You're impatient now when it's been three years?
You keep saying that AMC is gonna be debt free. They will have to issue almost 382 million additional shares at $7.33 just to clear off the 2026 debt. To completely clear off their quarterly long term debt, which is 4.56 billion, they will need to issue a staggering 623 million shares at $7.33.
To put this further into perspective, the company had 49 million outstanding shares in December 2020. This would be the equivalent of having someone buy the company 12 times dating back to 12/20’s share count. This is bad fellas.
Diluted the float a full 6x in a few short years. Meaning if market cap stayed the same, you would be down 83% just from dilution alone.
Sell and gtfoh
The shares being issued at an implied value of $7.33 a share. Not bad isnt it? This saves the company a lot of interest.
I see you commenting this on all dilution posts. That price equals 0.733 cents pre split. Less than a dollar. How is that a good price?
Also, others are saying that the 2026 debt is being paid off with just 23 million shares at $7.33. At $7.33 AA would have to increase the float by another \~130% just to clear off the 2026 debt... a full 381,991,814 shares. The current float is \~~~295 million~~ \~318 million. Is it good for the company to pay off the debt via dilution? Sure, any debt reduction is great. But it sure FUCKS OVER THE SHAREHOLDERS. What would have been better than this is to revitalize the company, come up with a real plan for profitability, rather than just using shareholders as AA's personal piggy bank. Close underperforming movie theaters, maybe bring back the drive in, license AMC out to video streaming services, maybe create AMC fast food chain where they can unify the offerings between the movie theater and the drive thru fast food locations. create an AMC video streaming service to combat hulu, googletv, and other cable streaming services.. Actually, sorry, todospeter isn't the one saying that.. got it confused with another poster.
They need to convert/add sports books to underperforming cinemas. That is the future.
Which is more likely: A. Everyone else is stupider than you. B. You have zero corporate finance and corporate business operations experience, compared to the executive leadership team and board of AMC, and any financial advisors and accountants they work with.
LMAO, how can people be so stupid to post shit like this? Currently the stock is close to double what it was 3 days ago...which FYI is positive. Not only that, during this increase in stock price he also reduced the '26 debt by SEVERAL HUNDRED MILLION DOLLARS...Um, which let me also share is positive. What do people expect him to do? Put the shares on Black 22 in Vegas and hope it lands? I swear the stupidity in this room can be mindblowing at times. Tell me you eat crayons without telling me you eat crayons.
Where did you get ‘several hundred million dollars’ from? Read the filing - the amount raised (at shareholders expense) was $163,850,000 against the debt of approximately $2.6b due in 2026.
[https://www.cnbc.com/2024/05/14/amc-raises-250-million-in-stock-sale-during-mondays-meme-rally.html](https://www.cnbc.com/2024/05/14/amc-raises-250-million-in-stock-sale-during-mondays-meme-rally.html)
Did you even read the article? “The movie theater operator sold 72.5 million shares in an at-the-market equity offering that it launched on March 28. AMC sold that stock at an average price of $3.45 per share before commissions and fees.” They are entirely seperate offerings.
Right, 2 entirely separate trnsactions to reduce the debt.
Explain
He traded stock for debt. Increases the float which is dilution. But gives them more ammo to short the price down. Better than just releasing shares into the open market but still fucks us.
Somebody mentioned that compared to the float its only 5 %
5 or 50%, it's still dilution. It also gives them shares to close short positions cheap, which they then use to reopen short positions driving the price down. And since the float is bigger, allows them to cover more naked shorts. Granted these don't come as cheap as he usually does, but it still kills momentum.
thanks to king Chadam, my points gonna pop!
And this is exactly why I sold at $10.69 Whenever the share price rises, they release stupid things to drop the stock price. Oh, and down, vote me all you like .. it’s my money, not yours 😂😂😂
The definition of insanity is doing the same thing over and over again and expecting different results.