NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Investing

Is reverse stock split coming for AMC? Here is what it means to price

by December 23, 2022
written by December 23, 2022

AMC Entertainment Holdings, Inc. (NYSE:AMC), a stock loved by retail investors, is having a rough time. The shares closed down nearly 8% on Thursday on stock market news that did not excite its fans. 

According to the latest announcement, AMC would initiate a 1-for-10 reverse stock split. The stock split would see the sock trade in upwards of $40. AMC exchanged hands at $4.91 as of press time. The news was negatively read by investors, pushing the stock down.

The Thursday announcement by the ailing movie theatre chain also indicated AMC was selling its APE units. APEs represent units of preferred equity of AMC. Over 100 million APE units would be converted into the common stock of AMC at $0.66 per share. That would see $110 million in capital injection to retire the company’s debt due in 2026.

But renowned short investor Jum Chanos has a piece of advice for investors. If the proposal passes, Chanos expects APE shares to be bullish and AMC bearish. He says with AMC currently trading at over $4 and APE at $1, the move would see their prices converge. That was also clear from AMC CEO Adam Aron, who expects shareholders’ approval to address the spread. Investors read this quickly, pushing APE higher, closing up 75% on Thursday.

AMC trapped in a descending channel as momentum weakens

AMC Stock Chart by TradingView

AMC stock trades in a descending channel. The MACD indicator has remained in bear territory and shows weak momentum. 

When to buy AMC?

Buying AMC stock in the current bear market is not recommended. The latest news is another bear trigger if AMC shareholders approve the proposed move. 

The possible support zones for AMC are $3.9 and $1.44. The region between the two price levels would interest investors looking to invest in AMC stock.

The post <strong>Is reverse stock split coming for AMC? Here is what it means to price</strong> appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
The Greatest Threat to World Peace: North Korea’s Kim Jong-un?
next post
Analyst reads full-fledged capitulation in Tesla as it becomes the most purchased stock

You may also like

U.K. CMA eases stance on pending Microsoft-Activision merger

March 25, 2023

Tether’s Paolo Ardoino says BTC could retest its...

March 25, 2023

Flare price surging as Deutsche Bank failure push...

March 25, 2023

Netflix stock price forecast: BofA sees a 30%...

March 24, 2023

Will TikTok be banned?

March 24, 2023

Huggins sees ‘uphill battle’ for Wetherspoons stock despite...

March 24, 2023

Block share price continues to tumble after Hindenburg...

March 24, 2023

Kaiko: Liquidity situation in crypto “worsening” amid USD...

March 24, 2023

S&P 500 has been falling, but for Euro...

March 24, 2023

SMI index nears correction as UBS stock enters...

March 24, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Popular Posts

  • 1

    Headline Inflation Falls, But Core Inflation Remains Elevated

  • 2

    My Trigger to Enter $VAPR

  • 3

    Multi-Millionaire Trader Explains Why You Should Start Trading With A Small Account {VIDEO}

  • 4

    Scaling Up Tips From A 24-Year Old Millionaire Trader {VIDEO}

  • 5

    Pay Attention to These Stocks

Recent Posts

  • U.K. CMA eases stance on pending Microsoft-Activision merger

    March 25, 2023
  • Do Not Tarry In Eliminating Tariffs and Other Protectionist Measures

    March 25, 2023
  • When It Comes to Big Tech and Monopoly Power: Patience is a Virtue, Antitrust is a Vice

    March 25, 2023
  • Tether’s Paolo Ardoino says BTC could retest its all-time high amid the banking crisis

    March 25, 2023
  • Flare price surging as Deutsche Bank failure push markets down: here’s why

    March 25, 2023

Categories

  • Economy (706)
  • Editor's Pick (304)
  • Investing (1,982)
  • Stock (9)
  • About Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • Contacts

Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 NewTradingView.com All Rights Reserved.


Back To Top
NewTradingView.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick