WSK, KICK and this message board I have a question
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Posted On: 01/17/2023 5:52:52 PM
WSK, KICK and this message board I have a question for all of you.
Background before the question:
The recent press release about a reverse stock split, a 1 for every 10 shares came out recently. Many shareholders were opposed to this because it would mean a loss of the number of shares, not the value of their positions.
With such a conversion of shares. Adam Aron would reduce the outstanding shares to about 1/3rd of its present number of shares. Share price would go up to approximately 10 times its current value.
With a much lower number of outstanding shares AA could do a stock offer at a little below the current stock price, Let's say, 100 million shares at $60/share.
With the money raised he could potentially make the company cash flow positive and profitable to boot. Sale of merchandise, popcorn, if AMC has it's own credit card,,,,,,,,,,
Bottom line, it would make it harder to naked short $AMC and naked shorts would have to spend much more to borrow shares if they could find them with a lower float.
MY QUESTION:
Do you think naked shorts will allow $AMC to run to let's say $15-$20 per share
in order to get shareholders to reject the reverse split and after vote rejects proposal short $AMC right back down to nothing again~?
In my opinion this is what the naked shorts ARE doing. If they succeed AMC will still be carrying ~$5 billion in debt and the burn rate will be unchanged,
APES need to be smart about this.
Thanks.
Background before the question:
The recent press release about a reverse stock split, a 1 for every 10 shares came out recently. Many shareholders were opposed to this because it would mean a loss of the number of shares, not the value of their positions.
With such a conversion of shares. Adam Aron would reduce the outstanding shares to about 1/3rd of its present number of shares. Share price would go up to approximately 10 times its current value.
With a much lower number of outstanding shares AA could do a stock offer at a little below the current stock price, Let's say, 100 million shares at $60/share.
With the money raised he could potentially make the company cash flow positive and profitable to boot. Sale of merchandise, popcorn, if AMC has it's own credit card,,,,,,,,,,
Bottom line, it would make it harder to naked short $AMC and naked shorts would have to spend much more to borrow shares if they could find them with a lower float.
MY QUESTION:
Do you think naked shorts will allow $AMC to run to let's say $15-$20 per share
in order to get shareholders to reject the reverse split and after vote rejects proposal short $AMC right back down to nothing again~?
In my opinion this is what the naked shorts ARE doing. If they succeed AMC will still be carrying ~$5 billion in debt and the burn rate will be unchanged,
APES need to be smart about this.
Thanks.
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