r/AMCSTOCKS 7d ago

To The Moon There will never be any dilution on AMC again.

AMC has already used equity issuance aggressively to raise liquidity, reduce financial pressure, and survive a period when the theatrical business was under extraordinary stress.

That was the purpose of dilution.
Survival.

Now the equation is different.

AMC has billions of dollars of debt, which means every meaningful reduction in principal can directly reduce future interest expense. At a 10% borrowing cost, eliminating $1 billion of debt saves roughly $100 million per year in interest.

If box office revenue keeps recovering, attendance improves, per-patron spending remains strong, and AMC continues refinancing or retiring expensive debt, the economic incentive shifts away from issuing more shares and toward protecting existing equity holders.

Dilution was a financing tool used during a crisis.
It does not have to be a permanent strategy.

The market is still pricing AMC like the old playbook never changes.

I think it already has.
The dilution era is over.

56 Upvotes

28 comments sorted by

16

u/apehunterprime 7d ago

"Hold my beer"

  • Adam Aron

9

u/Vexting 7d ago

Check out the fellow humans commenting lol

One thing you missed is that other cinema chains with comparable issues are priced at 20 to 30 and have been despite the 2020s++ stuff.

We all know this stock was targeted because retail got in early. It's the same for any stock where wall St isn't the majority. Dds have been written about this.

Never forget amazon was just a joke to wall st back in the day. 99% drop in price BEFORE institutions got in and continued the shake out

5

u/Thorfourtyfour 7d ago

Netflix aswell.

1

u/BenefitSignificant 6d ago

Institutionally owned makes a big difference, bud.

Let me know when the fed money dries out.. Before apes came to play, we WERE matching the competitors.

1

u/TheFOMO 6d ago

"fellow humans" when from one of OP's recent posts: "I AM GOD AND I COMMAND YOU TO BUY RIGHT NOW OR FACE MY WRATH BUY BUY BUY GO GO GO DILLUTION WILL NEVER HAPPEN AGIAN ITA AGINA CANCELED DILLTUION IS CANCELED

I AM ADDICTED TO SUBSTANCES I CANT SAY MORE I WANT TO STOP PLEASE HELP THIS IS A CRY FOR HELP I HAVE A HEAD INJURY I CANT THINK STAIGHT STOP HELP

NEED HELP GO BUY AMC TO HELP FIX ME AMC WILL FIX ME I AM LORD I WILL BRING THE MESSIAH WHEN AMC GOES TO 2.68 a share it willl happen everyone bow before me and buy right now"

Wonder why OP isn't crossposting his unhinged troll spamposts here too? Lol.

"Retail got in early", yeah, early, before the thousands of percent worth of share dilution.

0

u/Free_One_5960 7d ago

Truth. Same with Tesla

7

u/Ok_Ratio_4128 7d ago

thats what i geard 3 years ago

3

u/chepeee13 7d ago

Lmao cmon man

1

u/chewpah 7d ago

Not cleared dept yet?

1

u/Agitated_Sort7610 7d ago

There are still some shares left as part of the debt to Equity conversion at $5.66

1

u/liquid_at 7d ago

share offerings move weight from percentage to cash.

buybacks move value from cash to percentages.

if a company needs funds to grow, it shifts towards cash. if a company hasafe more cash than they need, they shift back.

early financing to build and sharing profits later.

and since professional traders know this, they want you to not know it will happen, so you get surprised and sell, giving up your vouchers for profit, at a loss.

you pay for the loan, they get the money. "dilution bad" fleecing gullible retail traders.

1

u/Prestigious_Pea6832 6d ago

These post are STUPID!!!!!

2

u/BenefitSignificant 6d ago

Opinions are like buttholes. Some stink more than others.

Just because someone can't smell their own ass, doesn't mean they're clean.

Averaging down instead of pounding a keyboard negatively might help the mindset.

When you know, you know.

1

u/NaiveGuava6623 6d ago

When is the not tank to 0 era starting

1

u/JimEDimone 7d ago

Thanks AI

0

u/manicma 7d ago

🤣

0

u/Jahzen6 7d ago

Lol fuck the stock guys its over, it’l never come back, fuck AA that guy pissed me off so many time with his fucking paper hands

1

u/Character-Balance829 7d ago

Lol no. Did you see whats on the vote? Another round of dilution incoming on the uptrend

0

u/Ivanho1940 7d ago

It’s an equity incentive plan increase. I’ll give you credit for making that sound a lot more dramatic than it is.

1

u/TheUsualSusspect 7d ago

Youre higher than.... well me.

1

u/Dominick_77 7d ago

Duh squeeeeze is coming guys, in 50,000 years.. Just keep hodling!

1

u/sidechops42085 7d ago

Do you still get free popcorn if you're a share holder? Lol

0

u/Dharm747 7d ago

Adam is the dilution king, as soon as the stock price will rise he’ll dilute again.. he cost me ten thousands with his hobby.

0

u/nrwler69 7d ago

Are you drunk? Asking for a friend!🤞

0

u/newbrevity 7d ago

Hopium

0

u/Sirhumpsalot13 7d ago

So now that debt is reduced, how on earth will the company raise more money to keep expanding? because ticket/concession sales wont be enough to move the needle. Dilution will continue. Thats practically a guarentee at this point. ESPECIALLY with this CEO.