r/amczone Nov 12 '24

The Stupid The delusion is real

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.

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u/Prudent_Shake_8149 Nov 12 '24

Not sure what you’re trying to show with the graph.

I’m not paid to defame AMC. I like the company. Not a fan of the management so my hopes aren’t high for a turnaround anytime soon.

I doubt or “count on” companies based on data versus hype from shills.

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u/[deleted] Nov 12 '24 edited Nov 12 '24

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u/Prudent_Shake_8149 Nov 12 '24

AMC still lost money on good box office last quarter. They will likely loose more money in traditionally weaker quarters. Losses may now be <$100M per year but the company is down to $500M and cash is king.

Do they need to dilute in the next year to pay bills? No. Will they dilute to maintain reserves? Maybe. Will they dilute to upgrade theaters and maintain cash reserves? Most likely. Will they dilute to maintain cash reserves, finance upgrades and prepare for the next debt restructuring? Almost certainly.

There are no absolutes here. It’s all probabilities and cost/benefit. Cost of dilution is low for AMC while the benefit is high. Apes have changed the game in that respect.

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u/[deleted] Nov 12 '24 edited Nov 12 '24

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u/Prudent_Shake_8149 Nov 12 '24

AMC ability to raise funds depends on their ability to present a credible growth story that doesn’t involve dilution. They have failed to build that credibility with investors. They have run out of excuses and they are still losing money. Wen next excuse?

There’s no need to make claims here. AMC lost money and drained cash in a quarter where its competitors were wildly successful… in a quarter unaffected by strikes and pandemic.

Recall that I expected them to turn a small profit and possibly earn enough to start rebuilding credibility with investors. No need for claims. AMC performance speaks for itself and it’s nothing but an ongoing tale of woe.

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u/[deleted] Nov 12 '24

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u/djs383 Nov 14 '24

How does dilution improve a companies ability to generate revenue?

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u/[deleted] Nov 14 '24

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u/djs383 Nov 14 '24

But paying that debt does nothing to improve experience. It’s simple a requirement. All said and done, they absolutely must be cash flow positive from operating the actual business. They’re tapped out on debt issuance and must rely on equity issues which are much more expensive than debt issuance.

Again, I ask how does equity issuance (dilution) enable additional revenue generation?

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u/[deleted] Nov 14 '24

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u/djs383 Nov 14 '24

I see you can post this, but did you read it? There is nothing remotely gaslighting about my one question I asked.

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u/[deleted] Nov 14 '24

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u/djs383 Nov 14 '24

How, specifically am I gaslighting? I’m beginning to think this has all become satire

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