Shameless copycatting of an idea shared by Chanos on CNBC yesterday, I'm keeping this brief in the interest of timeliness. AMC Entertainment issued a preferred equity unit on a 1:1 basis as a special dividend to common shareholders. The new preferred units began trading on Monday. They are economically equivalent to common shares. Here is a link to FAQs on the SEC’s website https://www.sec.gov/Archives/edgar/data/1411579/000110465922092397/tm2223780d1_ex99-1.htm.
A few excerpts with emphasis added:
As I write this, there is about a 23% spread between AMC common stock (NYSE: AMC) and these new preferred equity units (NYSE: APE). I expect this spread to compress in the coming weeks/months as the market fully absorbs this new information.
APE units trade on NYSE and are very liquid, with $134mm of volume traded already today. this creates an opportunity to short AMC/buy APE and make the ~23% spread.
I do not hold a position with the issuer such as employment, directorship, or consultancy. I and/or others I advise do not hold a material investment in the issuer's securities.
Are you sure you want to close this position AMC ENTERTAINMENT HOLDINGS?
By closing position, I’m notifying VIC Members that at today’s market price, I no longer am recommending this position.
Flag AMC ENTERTAINMENT HOLDINGS for Removal
Are you sure you want to Flag this idea AMC ENTERTAINMENT HOLDINGS for removal?
Flagging an idea indicates that the idea does not meet the standards of the club and you believe it should be removed from the site. Once a threshold has been reached the idea will be removed.
You Cannot Submit Message ... Yet
You currently do not have message posting privilages, there are
1 way you can get the privilage.
You can apply for full membership by submitting an investment idea of your own. Or if you are in reactivation status, you need to reactivate your full membership.
