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A common bull market decision that can inadvertently bet the company in a bear market: taking on debt knowing that you can’t service it from cash flow betting on refinancing it later with new debt/equity. If the markets don’t cooperate when refinancing, the business is in peril.
Some seem to enjoy reporting AMC is off its all-time closing price high, 6/2/21 $62.65. They fail to report close yesterday was 7 TIMES what it was when the pandemic closed theatres, 3/16/20 $3.19, or 11 TIMES when we were written off for dead, 1/5/21 $1.98 #TellTheWholeStory
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It only would be dilution if we decide after August 22 to issue more APEs, above and beyond the initial dividend amount. But as I tweeted earlier, if we were to do that smartly, that could be very good for AMC investors. Our track record at AMC is excellent on this score so far.
Oh and while I am on a roll this lovely Saturday. There is absolutely NO DILUTION in this initial stock dividend payout on August 19. That is because initially all these APE’s go, and only go, to our current shareholder base. You own the same percentage of AMC before and after.
As for U.S. income taxes, this all should be tax free to you. There is no tax owed on the APE when you get it. If/when you sell it, our understanding is that for short term/long term purposes, the acquisition date of your APE is the same date as with the corresponding AMC share.
Sounds like the GME stock split/dividend has completely destroyed some brokers back-office systems - I keep hearing about the nightmare of dealing with TDA. Also sounds like overseas brokers are having serious problems, and German brokers are struggling getting shares to people.
Other than a few idiots that readily come to my mind, and likely yours, who in the - - - - can still say movie theatres are dead and have no future? Thank you Tom Cruise. Top Gun: Maverick just crossed $1 billion in global box office, in less than one month! #CHOKEonTHAT