To The Moon

After a string of lawsuits, dust has finally settled with $AMC Entertainment(AMC)$ ’s implementation of its reverse 1-for-10 split of its common stock and APE stock conversion to set the path for the struggling movies theatre chain to raise fresh funds through issuing new equities.

Once a meme-stock darling that propelled its stock price to great heights unjustified by its weak fundamentals amidst restrictions at the peak of the COVID pandemic that saw its many theatres vacant, AMC has since fallen from grace.

Despite easing of the pandemic, gradual transition to the new normal has not brought huge crowds back to its theatre halls yet, and the company is still crumbling under its mountains of debts. Hence, the ability to raise capital via equity injections is its only lifeline.

It remains to be seen how AMC is able to reinvent itself to stay relevant post pandemic amidst rising competitors no less from online streaming service providers the likes of $Netflix(NFLX)$ , $Amazon.com(AMZN)$ Bullishand $Walt Disney(DIS)$ Bearish, and as investors brace for more stock dilution as the company is expected to need additional equity capital in the near future and chart an uncertain future.

With still the overhang on its stock price, I prefer to stay on the sideline and watch the meme stock with a bag of popcorns.

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