Amc Tumbles after meme stock agrees. Settlement over Ape conversion AMC Stock tumbled 25 earlier Tuesday but its preferred share stored more than 30 As the movie theater operator said, it reached a settlement with shareholders over its planned stock conversion. So this might be confusing to some people who haven't been following the Saga Why would you have two things that have the same financial and legal claim to the company? How could you have one plummeting and one skyrocketing? How does that make sense? The answer is arbitrage. In fact, in my Prelude to this, that's the answer.

They have the same legal and financial claim to the company. So why are they not trading at the same price? So people are now looking for these to be trading at the same price? AKA Parody So you take the one that's more costly currently AMC and you short it and then you go along on the one that's relatively cheaper, which would be Ape. It's all because of Arbitrage and now the market is pricing in that the chances of Arbitrage are more likely because of this legal update. The settlement paves the way for the company to complete its plan to convert its AMC preferred Equity or Ape units into shares of common stock.

The Proposal which also includes increased the number of authorized shares and a 10 to 1 reverse stock split was approved by shareholders last month but has faced Court proceedings. The litigation was brought by a group of shareholders who argued the move deluded existing common stock shareholders without any compensation in return, which is fully accurate. That's what this is this is. a dilutive move they are deluding to try to raise Capital to try to pay off their five billion dollars worth of debt.

The terms of the settlement announced in a filing by AMC late Monday will see common stockholders receive one share for every 7.5 shares held after the reverse stock split. So basically owning AMC you're not getting as screwed over as you were with the 10 for one. Now it's 7.5 so a little bit more favorable to the tune of 25. The payment would represent around 4.4 percent of AMC stock or 6.9 million shares.

Lawyers for the plaintiff's estimated common stock holders would receive shares valued at more than 100 million. Through the settlement, the settlement provides investors with additional shares in satisfaction of their voting claims, will be allowing the company to move forward with its plan to pay down its debt. So basically said, the dilution is not fair and the agreement was okay. Well, if you own AMC we're going to be deluding you less.

Instead of getting one for every 10 you own, you're now going to be getting one for every 7.5 you own. So you're gonna end up with more. At the end of all these calculations and arithmetic, it's still deluding. Uh, but you're saving yourself about 25.

So that's the big update that came out yesterday. and then that's exactly why we saw ape skyrocketing and AMC dropping. It's all because of Arbitrage people are looking for Price parity because AMC and Ape have the same legal and financial claim to the company. If they have the same legal and financial claim, it makes sense that they would be trading at the exact same price.

So that's your quick update on AMC. This honestly has become a massive shit show as I alluded to before, If you've been paying attention to the public rhetoric and sentiment surrounding Adam Aaron and the leadership team of AMC it has been plunging. It was very, very positive a mere 12 months ago and from them until now, with all these dilutive, anti-investor decisions, people are just starting to hate them. They're starting to realize hey man, I thought you were on our side I Thought you would truly adopted this ape culture, but it seems to be a facade of a guy who is a classic suit through and through who use this entire situation to do nothing but line his own.

Pockets He has personally made over 40 million dollars, he sold off, he sold off, he sold off. In fact, the only shares he has now are the ones that he legally has to keep owning and the only thing he's doing to somewhat keep the positive sentiment surrounding him alive is he'll just like tweet out random things of like news people are there they don't like AMC and then the sycophants they like it and they think it's awesome. but we got duped This guy proved himself to be a suit and this happens all the time in Big Business It sucks. It absolutely sucks.

I Might myself lost a lot of money I Know a lot of you folks watching this. Maybe you made money if you did Congratulations to you. Maybe you're in my situation where it ended up being a net negative play. Remember, there's always more plays in the market.

This is exactly why you don't go all in on one play. Whenever it comes to things such as the market, you're always going to want diversification. But at a certain point with all of the evidence that's in front of us, you can't simply go around and just keep yelling the opposite that everything's great, everything's fine. We just have to have quote unquote: Faith That's one of the dumbest fucking things I've ever heard when it comes to the market.

The market is an emotionless organism that is based on numbers and facts and Trends and sentiment. It's not just like a faith thing to me, that's like one of the dumbest arguments out there. and that's the last standing argument is we have faced in. Adam Aaron It's a random suit who people are just fucking chilling for.

And it's It's crazy. It's absolutely crazy I Am not here to just tell you everything you're doing is right and we're all going to make money. I'm attempting to give you an honest breakdown of real situations. Sometimes my honest breakdown is that I'm excited and cool things are happening and then other times my honest breakdown is that pieces of shit like Adam Aaron stole from us I'm not here just to give you hoping coping If you've noticed the trend, the people who give you hopium and copium they can only last for so long.

But the people who are telling you their truths, their honest opinions, they're the people who are still around. There's like no one see that differential. There are many names that have come and gone in this community. They're a flash in the pan.

Some have last longer than others, but they end up disappearing because they're full of shit. They don't have the knowledge of markets to back things up. They don't have like any honest sentiment to back it up. They're here and it works as long as opium and copium works.

But when people realize that they don't know what they're talking about, when people realize that those people are wrong, they end up disappearing. If you're coming to me and just be like I always want to be excited. Well, okay, that's someone else, that's just not me. I I'm here to try to make money I'm here to try to learn a little bit more about the markets.

I'm trying to hear to learn from all of you folks and have a good time. But that doesn't mean I'm simply going to be like oh no, this is all great and we're being screwed over and we're going to make more money. That rhetoric has played out like those people are gone. They've come, They've gone like we can all name a handful of people who that was, their ammo and then now nothing they are Dust In the Wind they're just disappeared.

They've gone off into the ether and I just don't really have interest in that I don't have interest in that whatsoever.