APE/AMC Conversion Play

Jan 30, 2023

They're talking about converting APE to AMC shares, if the ratio winds up being 1 to 1 then AMC will go down and APE will go up.

Picked up 1k of APE as a kicks and giggles trade, we'll see what happens. the other play would be to short AMC, which wouldn't be a bad play considering the Fed meeting coming up. Heck, you prob could do both as an arbitration trade.

Long term the conversion would be bullish when completed because it takes care of most of their debt.

Jan 30, 2023

Note

Completely speculative bet BTW

Jan 30, 2023

Note

Even a 2:1 conversion ratio would still net you 10%, we'll see where the market prices it

Jan 30, 2023

Note

Regardless of if my play works out, this is the right move for AMC. Dilute until solvent, lol.

FCEL did it, and they no longer have debt. GME/AMC/BBBY/BB should have done it 2 years ago (AMC/GME did dilute back then but they should have gotten rid of ALL of their debt)

Jan 30, 2023

Note

If AMC doesn't tank then APE is really gonna take off. Remember what I said last week, when the market gets stupid, you gotta get stupid with it.

Jan 31, 2023

Note

AH pennant indicates it's headed to $2.5 to price in a 2 to 1 conversion ratio tomorrow. Ratio has not specifically been mentioned in any press release, so there is some uncertainty there.

Jan 31, 2023

Trade closed manually

Bailed premarket at my target and added $400 or so to my HSA account, lol.

Couple of years ago I doubled my HSA with AMC, didn't work as well this time, but I'll take a >10% one day gain. I rarely trade my HSA since I don't have much money in it, I only do it when I think something is gonna move big, otherwise not worth it.

But hey, i covered inflation for teh year, now I don;t have to touch it until next year, lol.