When it rains, it pours

After a reverse stock split granting 1 common share for every 10 shares owned recently, $AMC Entertainment(AMC)$  announced last week on its plan to issue 40 million new shares to raise new funds to reduce its enormous debts.

The news was highly anticipated by the market as the new equity sale was the only lifeline for the largest movies theatre chain in US and its original motivation for the reverse stock split in the first move.

Nevertheless, the news still plummeted the stock price over 40% last week as its shareholders rushed for exits with mounting uncertainty over the prospects of the movies theatre chain as a going concern amidst rising competition from online streaming service providers the likes of $Netflix(NFLX)$ $Amazon.com(AMZN)$ and $Walt Disney(DIS)$ .

Once embraced by meme stock fanatics who collectively stock-squeezed and pushed up its stock price to the moon despite mostly shuttered theatre halls at the peak of the COVID pandemic restrictions and accumulating debts, fundamentalists have since taken over helm and sent the stock price crashing back to earth.

Despite easing of the pandemic and recent blockbuster releases, AMC is still struggling under its humongous debts. It remains to be seen how AMC is able to re-invent itself to stay relevant post pandemic amidst growingly tough competitors in a saturated market and as investors brace for more stock dilution in future to stay afloat.

Hence, I would stay away from the stock and watch the movies as it unfolds with a pack of popcorns.

@TigerStars @TigerWire @CaptainTiger @MillionaireTiger @TigerEvents 

# 💰 Stocks to watch today?(19 July)

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  • Jim1995
    ·2023-09-09
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    Already knocked $25 off my avg price since conversion i just continue to buy and hold I won't be below -80% on amc for long avg price $32 been here since 4/15/21 and when she pops it's gonna be a beautiful thing.


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  • RandyHall
    ·2023-09-09

    I have made so many poor choices, that I'm an unskilled temp agency weekend worker, paid to be an obnoxious parasite for the benefit of corrupt wealth, even though I'm considerably poor and disadvantaged myself.


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  • 0billionaire
    ·2023-09-09

    pls drop this to around 5 so I can stick 10k into it if it drops lower I'll sell my other stocks to avg down


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  • PSG2010
    ·2023-09-09

    We already own at least 100 AMC floats! Let’s keep buying and accumulating AMC shares and make it 1,000!


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  • CharlesBaker
    ·2023-09-09

    You got to hold. I am holding a nice position. Set it and forget it.


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  • MIe
    ·2023-09-11
    Amc reverse split
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