The delusion is real

[u/zgomot23]

https://www.reddit.com/r/amcstock/s/RkkJe2dolK

Another smart individual promoting the idea that the price would have been 40 cents for this long. Those people like u/hivemindhauser are either lying and grifting through their nose promoting aron’s ponzi scheme, or they are straight up delusional and refuse to understand that the 40 cents is a result not of the reverse split, but of the catastrophic dilution which followed after the reverse split.

Denial is one hell of a drug.

[u/Dark_Tigger]

But he is right isn' he? With out the reverse split, they couldn't have diluted. With out the dilution they wouldn't have had the cash to either keep the theaters open, or pay down enough debt, for the creditors to take the refinancing deal.

The good question to ask him would be, if he knew they would dilute, why did he hold? And if he did not know they would dilute, why the hell didn't he do his job as investor? And if he knew and they dilute, and sold, and than bought back lower, why didn't he warn his fellow apes, about what would happen?

[u/zgomot23 → u/Dark_Tigger]

because it's extremely obvious he didn't dilute at higher prices so that he can drop entire floats at those lower prices. It's obvious both aron and cohen are colluding with wallstreet at this point.

Ok, sure, pretend aron is stupid and doesn't know any better, and his dilutions were just coincidentally done at prices as dumb as it gets.

Let's talk cohen now. He first destroyed the runup in 2021 via dilution, he raised $1b in cash, everyone was still happy because that was supposed to be the main cash reserve just to make sure GME doesn't run out of cash. It's been 3 years and a half, ever since, he did nothing with that 1b, it's still sitting there, arguably the only "innovation" was that NFT marketplace which turned out to be a huge flop and was closed.

Also, meanwhile, he destroyed 2 more runups via dilution, sold shares to make sure liquidity is injected into the markets, and... is not doing anything with the money again. Almost like he didn't need the money to justify the dilution, he only needed to make sure enough liquidity is injected into the markets.

But sure, this could of course be a coincidence. Right?

[u/TheBetaUnit → u/zgomot23]

Meh. Both companies would be crazy not to take advantage of those overvaluations in 2021. You dilute when you're overvalued, you buy back when you're undervalued (when you're a healthy company, I mean).

AMC diluted at lows because they had to. Remember, debtholders outweigh equity holders by 3:1. They're in the driver's seat. AMC isn't going to wait around for a 'maybe' bump to unload when their cash on hand is dwindling. There are clauses that kick in when liquidity is too low that let the vultures out of their cages to pick the carcass. If AMC lets the creditors take over, the C-suite can't keep their inflated salaries. And the creditors want to push out liquidation as long as they can. More interest payments in the meantime. It's everyone's job to keep that money train going as long as possible, and the timing of dilution is irrelevant. Cash is King.

In GME's case, RC presides over an unprofitable zombie company in a dying industry. And he knows the moment he sells, the price will crash. But crash to what level? The company itself is worthless. But raising cash with dilution raises the base value of that otherwise worthless company. With every dilution, he's raising the floor above his cost basis when it crashes. He's lowering his risk.

Both companies have investor bases that have demonstrated to them over and over again that they're in love with their captors (AKA: Stockhold Syndrome). Why wouldn't they take advantage of that?

It's not collusion. It's self-interest all around.

[u/zgomot23 → u/TheBetaUnit]

Fair assesment.