Deciphering the Definitive Outcome: Court Settlement Implications for AMC

A growing number of investors in AMC Entertainment (AMC) are expressing their belief that the only way to achieve the rightful three-digit pricing for AMC shares is by suspending the practice of short selling known as "apeing" (referring to the hashtag #APE) and deeming it illegal. They argue that APE serves as a tool for manipulative short sellers to find an exit strategy, resulting in excessive control over the daily prices of both AMC and APE. These short sellers, who have relied on tactics such as "short and distort" for an extended period, are now desperate to extricate themselves from their positions. However, they face a resilient group of persistent investors who refuse to give in. Many retail investors have been vocal about the daily price manipulation, highlighting it through numerous videos shared online. The failure to deliver shares has reached millions in each trading cycle, with the Securities and Exchange Commission (SEC) and other regulatory bodies offering what some deem as inadequate justifications. The extent of price control exerted is truly remarkable. Numerous short sellers are awaiting an arbitrage opportunity, which hinges on the settlement of pending lawsuits, the merging of APE into AMC shares, and a subsequent reverse stock split at a ratio of 10 to 1. This convergence of AMC's price with that of APE will likely result in a significant decline in AMC shares, possibly plummeting to disastrous levels. The shorts may persist in controlling the price using manipulative techniques. Following this, the AMC board will likely dilute AMC shares by incorporating APE, offering up to 5 billion shares. This move would allow AMC to raise substantial capital and ensure its survival. However, once again, retail investors would be the losers in this trade. They would have contributed to enriching the AMC board and management, saving the company and benefiting the shorts. Yet, their collective financial investment would have gone down the drain.

Posted by Anonymous (Anonymous) 2 years ago

0 points.