AMC / APE *JUST* Converted! JUDGE RULES

holy smokes everybody it happened the

AMC conversion approved in my last video

on this Saga I broke down what AMC's

board had pulled off basically giving

over 60 percent in a voting rights to

the ape shareholders much of which just

have the mirrored voting power for

whatever basically the board wants and

boy this road is so bumpy Mr McCain I'm

bumping around that kind of sounds a

little funny but anyway uh so there we

go uh now here's what's going on look in

my last video if you watch it on AMC I

discussed how there was potentially a

play to buy calls on ape because all

that was gonna happen was they were

going to revise the agreement the

settlement agreement and it probably get

approved even though it's sole ripoff to

AMC to some extent in the short term

it would get approved and that's exactly

what just happened the ape conversion

got approved that means ape will merge

with AMC as a result AMC is down about

25 26 percent ape is up somewhere around

24 to 25 percent

and um in the longer term this is

actually good for AMC uh AMC needs to

raise money uh ultimately the reality is

you've got a thousands tens of thousands

of people working for AMC Theaters they

need to raise money they need to get out

of debt if they want a chance at

surviving they need to raise this money

so the way you do that is unfortunately

you dilute shareholders shareholders

have been resistant to that hence the

scheme to do it through the ape the AMC

preferred units and essentially create a

mirrored voting option where the board

is able to say if you don't vote you

vote our way as a result now the board

has control to dilute shareholders to

raise money since their first scheme

didn't work which was diluting ape that

failed because they were too slow we saw

that coming back when ape was eight

dollars and then it fell under a dollar

now uh here's the reality AMC is going

to fall it will merge uh probably in a

month or so with ape and AMC will have

to climb its way out of penny stock

status now that it's going to be under

five dollars for a while the way to do

that is to start paying off debt lower

that interest expense over a million

bucks a day if I recall correctly from

the last time I looked at their earnings

and uh really focus on growing your

value ad at the movie theaters what can

you do to get people back into movie

theaters is it IMAX I don't know those

IMAX cameras are very expensive and few

of the theaters have that it's probably

more box office hits the downside of

that is Rider strike so you're in a

situation where you do have a lot of

headwinds in the movie theater industry

streaming Wars are becoming more rampant

where it is becoming harder to compete

obviously there's nothing like watching

a movie on a big screen but I'll tell

you I've got family in Germany in the

movie theater industry and they're not

loving it right now they're trying at

least from the last time I talked with

them to do uh sort of events at the

movie theaters whether it's uh you know

movie and uh disco uh you know movie and

beer whatsoever you you know uh food and

beer while you're watching in your movie

which I actually think is you know a

good direction we just don't know the

appetite of that for people in America

compared to just being at home and

watching a movie frankly you can get a

72-inch Amazon Fire TV for like 500

bucks now is not an ad by the way an ad

by the way is getting Financial advice

by going to stack hack get stacked with

stack hack by going to stackhack.com now

providing licensed Financial advice

actual Financial advice anyway so

look if if you're in it for the long

term

I I wish you the best uh I I do think

that ultimately AMC needs to raise money

this is what they need to do the board

is doing what they have to

to keep the company alive otherwise

they'll go bankrupt like cineworld so

this will create a lot of pain in the

short term the writing was well on the

wall though and we broke it all down in

the last video uh the conversion has now

officially been approved and uh now I

think the probably the worst is over for

the short term

however it will get even worse if they

don't pay down that debt rapidly and

start expanding their profit that is

going to be key so even if you think now

the worst is over the worst could

actually still be ahead if movie

theaters don't get their act together

and become substantially more profitable

than where they sit now anyway I'm

traveling uh with house hack we've got

one more state to visit uh got a couple

offers written over here so we're really

excited and I think there's our bird no

is that ours I can't tell I can't see

that far is it is it all right whatever

all right anyway we'll see in the next

one thanks so much and uh Hey if you

pulled off some calls on AP leave a

comment down below we'll see you soon

goodbye oh there it is there's the pp