AMC

AMC Entertainment Holdings Inc.'s preferred stock made its debut Monday amid a selloff in other meme stocks and the broader market, making for a volatile ...

The “meme-stock” reprise of 2022 took another beating on Monday as shares in the movie theatre chain AMC, one of the companies driven to dizzying heights by ...

Since 2015, stock in Bed, Bath & Beyond has dropped from $77 a share to around $10. The The performance of the two cinema companies is strikingly different.

AMC Entertainment's AMC Preferred Equity Units, or APEs, are creating something like a stock split and sending the cinema stock lower.

“In any case, we don’t think Cineworld’s issues indicate the same for AMC or Cinemark, as the latter companies are better positioned with more cash available.” The APE special dividend should also make AMC a stronger company, he added. “In the absence of any other noise, AMC shares should be down around 50% (to $9) with APE shares rising to $9, given Friday’s AMC closing of $18.01,” she told MarketWatch. The idea that Cineworld’s bankruptcy is detrimental for AMC is way off the mark, according to Wedbush’s Reese. “However, given that the special dividend is similar to a 2-for-1 stock split, it makes sense to see AMC shares pressured with this issuance.” [The Wall Street Journal](https://www.wsj.com/articles/regal-cinemas-owner-cineworld-prepares-for-bankruptcy-filing-11660910944?page=1&mod=article_inline&mod=article_inline&mod=article_inline) that U.K. “We keep seeing articles that Cineworld’s bankruptcy is a negative for AMC and the industry, but I fail to see how that’s the case,” she told MarketWatch. cinema chain Cineworld Group PLC [CNWGY, -32.11%](/investing/stock/CNWGY?mod=MW_story_quote) [CINE,](/investing/stock/CINE?countryCode=UK&mod=MW_story_quote), the parent of Regal Entertainment Group, was -21.36% [preparing to file for bankruptcy](https://www.marketwatch.com/story/movie-theater-operator-stocks-fall-after-wsj-report-that-uks-cineworld-is-preparing-for-bankruptcy-2022-08-19?&mod=article_inline&mod=article_inline&mod=article_inline). “They both have the same economic value,” he said. “However, there is likely to be some short-term impact from index funds readjusting for this issuance as the APEs are not included in the indices, but the common shares are included.” “I suspect that will be the case with the APE shares going forward,” he added. AMC shares, which have fallen 59.3% this year, have declined 4.3% over the last three months.

A clutch of stocks favored by retail traders tumbled on Monday in volatile trading as news that UK-based Cineworld warned of a possible bankruptcy sent AMC ...

[(BBBY.O)](https://www.reuters.com/companies/BBBY.O), was down 3%, continuing Friday's 40.5% slump after billionaire Ryan Cohen abruptly dumped his stake in the struggling retailer. "The AMC distribution of “APE” is somewhere between a stock split and a stock dividend," Rick Meckler at Cherry Lane Investments. The COVID-19 lockdowns severely impacted the business of cinema operators. This seems designed to effectively allow for the issuance of more equity by AMC without technically breaking the company’s promise to not issue more common shares further potentially diluting their value." "So you had similar investors in Bed Bath and Beyond and Gamestop and AMC.” AMC and APE shares were together trading at $17.14, which was below than AMC's last closing price of $18.02, according to Reuters calculations. AMC common shares were nearly 40% lower at $10.93. movie chain's preferred shares started trading. [(GME.N)](https://www.reuters.com/companies/GME.N). Register now for FREE unlimited access to Reuters.com [(CINE.L)](https://www.reuters.com/companies/CINE.L) warned of a possible bankruptcy sent AMC Entertainment Holdings' shares [(AMC.N)](https://www.reuters.com/companies/AMC.N)diving almost 40% on the day that the U.S. [(BBBY.O)](https://www.reuters.com/companies/BBBY.O) and GameStop Corp [(GME.N)](https://www.reuters.com/companies/GME.N) also slid as AMC's preferred stock, trading under the ticker "APE", opened at $6.21 on the New York Stock Exchange.

Wedbush lowered its AMC price target to reflect more shares after it issued APE, its preferred equity stock.

"We note that at the August 22 closing price of $6, AMC would have to issue over 900 million shares of APE to repay its entire debt balance," Reese wrote. Reese also noted that the Cineworld bankruptcy should not impact AMC as it doesn't relate to negative industry dynamics. "While it makes little sense for APE to trade below AMC, we think that it reflects concerns over impending dilution," Alicia Reese wrote in a Tuesday note. On the first day of APE trading, combined shares lost $800 million in enterprise value from Friday's closing price of $18.01, according to the note. AMC closed at $10.46 while APE ended the day at $6. "AMC is pre-authorized to issue up to 4.5 billion additional preferred shares of APE to raise cash."

AMC Entertainment Holdings Inc , the movie theater operator that investors have turned into a meme stock, completed the listing of its new preferred shares ...

AMC tried to boost the popularity of the preferred shares with investors ahead of their launch. It did not need to seek shareholder approval for the preferred share issue because it relied on an authorization granted to its board by its former owner, China's Dalian Wanda Group when it listed in 2013. The Leawood, Kansas-based company has declined to comment on when it might sell preferred shares to raise money. The preferred shares have the same voting power and right to a dividend as common shares. AMC could sell common shares but it requires shareholder approval to do so. AMC said its board can authorize the issuance of up to 5 billion preferred shares but it has so far approved only 1 billion.

Shares of AMC Entertainment Holdings fell on Monday morning, reflecting the payment of a special dividend of preferred equity units–APEs– to shareholders ...

analysis as of March going back to 1980.\n\nAMC and APE both were halted several times during the morning session, as common shares gapped down while the preferred equity units shot up, converging to where traders are seemingly pricing "fair value" for ownership of the company. Shares of AMC Entertainment Holdings fell on Monday morning, reflecting the payment of a special dividend of preferred equity units–APEs– to shareholders after Friday’s close.\n\nThis sort-of stock split makes it slightly confusing to compare Monday's prices with the predividend prices that prevailed Friday, but a quick tally shows that AMC holders are up since Friday.\n\nWith common shares of AMC trading at $11.05 and APE trading at $7.55 the combined value of the two securities is now $18.60, or 3% higher than Friday’s closing level in AMC stock of $18.02. That says AMC’s August rally is continuing, at least for now, though we shall see what happens if the market keeps falling Monday.\n\nIt is not uncommon for shares to receive a boost from investors after a stock split.

Companies that look like they had a new lease on life courtesy of the meme stock movement are suddenly being forced to ponder their prospects without retail ...

[White House: Climate law could slash related damages by up to $1.9 trillion](/2022/08/23/climate-law-slash-damages-up-to-2-trillion) [Whistleblower complaint alleges Twitter deceived regulators](/2022/08/23/whistleblower-complaint-twitter-regulators) GDP](https://www.npr.org/2022/04/07/1091258821/the-future-cost-of-climate-inaction-2-trillion-a-year-says-the-government#:~:text=The%20economy%20could%20shrink.&text=Based%20on%20current%20warming%20trends,%242%20trillion%20in%20today's%20dollars.) by the end of the century, [reports have warned](https://www.axios.com/2022/05/23/report-steep-costs-climate-inaction). [last month filed](https://www.axios.com/2022/08/23/whistleblower-complaint-twitter-regulators) a 200-page whistleblower report with Congress and various federal agencies, as first reported by [CNN](https://edition.cnn.com/2022/08/23/tech/twitter-whistleblower-peiter-zatko-security) and [the Washington Post](https://www.washingtonpost.com/technology/interactive/2022/twitter-whistleblower-sec-spam/). But being a meme stock darling could be fickle business. [reported](https://www.cnbc.com/2022/08/22/amcs-new-ape-units-are-a-meme-friendly-way-to-raise-cash-fast.html). [end his $44 billion takeover](https://www.axios.com/2022/05/17/elon-musk-twitter-timeline) bid in a Delaware court this fall. [Twitter whistleblower complaint could help Elon Musk](/2022/08/23/twitter-whistleblower-complaint-could-help-elon-musk) [targeting the same-old stocks](https://www.bloomberg.com/news/articles/2022-08-17/wallstreetbets-founder-says-back-to-school-spurs-meme-mania-anew). [grappling with the effects of the pandemic](https://www.axios.com/2022/08/19/movie-theaters-suffering-from-hollywoods-slow-summer)and facing stiff competition from movie streaming services like Netflix, Disney+ and HBO Max. [already skeptical credit markets](https://www.wsj.com/articles/bed-bath-beyonds-fizzling-rally-narrows-options-for-cash-infusion-11661160602). [Economy & Business](https://www.axios.com/economy-business)

AMC Entertainment Holdings' shares tumbled nearly 30% on Monday after UK-based Cineworld's warning of a possible bankruptcy spooked investors on the same ...

The COVID-19 lockdowns severely impacted the business of cinema operators. AMC's preferred stock, trading under the ticker "APE", opened at $6.95 on the New York Stock Exchange on Monday. Register now for FREE unlimited access to Reuters.com

Shares of AMC (AMC) fell 42% yesterday as its new APE preferred shares began trading, while major cinema operator Cineworld warned of potential bankruptcy.

AMC CEO Adam Aron told investors that the value of their investment in AMC is the combination of AMC shares and the new APE units. AMC shareholders have resisted new share offerings in the past due to The company's CEO also said the cash could be used for Cineworld shares fell over 33%. Rival Cineworld, which owns Regal Cinemas, said yesterday it was considering filing for bankruptcy, adding to industry worries. AMC’s APE units debuted yesterday after being distributed to investors as a special dividend.

AMC Entertainment Holdings Inc, the movie theater operator that investors have turned into a meme stock, completed the listing of its new preferred shares ...

AMC tried to boost the popularity of the preferred shares with investors ahead of their launch. CEO Adam Aron cited investor opposition to more common stock sales, and AMC has not sought shareholder approval for a sale since. It did not need to seek shareholder approval for the preferred share issue because it relied on an authorization granted to its board by its former owner, China's Dalian Wanda Group when it listed in 2013. The Leawood, Kansas-based company has declined to comment on when it might sell preferred shares to raise money. AMC said its board can authorize the issuance of up to 5 billion preferred shares but it has so far approved only 1 billion. The preferred shares have the same voting power and right to a dividend as common shares.