OT: Game Stop

[mscanlo]

I actually enjoy going to movie theatres - will buying stocks mean theatre stay open?

I read that one of AMC's creditors converted corporate bonds into shares, and thus, $600M of debt relief was given to AMC. They have also raised about $1B in finances over the past month (including $300M in cash generated from selling shares two days before the stock took off, which would've been worth $1.2B+). I wouldn't be surprised if AMC sold off more shares and will be financially secure for some time (they were essentially headed to chapter 11 i.e. restructure their finances so they could continue to operate).

in short, yes, the stock price has helped AMC, but no, IMHO, I wouldn't buy shares to try to keep them afloat, especially at the current price. If needed, AMC has other options at their disposal

 

[Brooky03]

Lol

 

[OttoinGrotto]

I'm not one for this degree of vulgarity but if there's ever a time to drop a GTFOH, this is it.

 

[UnderHisOwnPower]

Robinhood needs to rebrand to Scrooge, or glue factory. They've completely spit the bit in just a few days time and destroyed their entire mission.

 

[bpo57]

It's too bad some of the experts didn't buck up and join Temery's fantasy stock league. We could have seen if the returns matched the talk!

Who is claiming to be an expert? Bunch of people providing their opinions.

 

[bpo57]

I read that one of AMC's creditors converted corporate bonds into shares, and thus, $600M of debt relief was given to AMC. They have also raised about $1B in finances over the past month (including $300M in cash generated from selling shares two days before the stock took off, which would've been worth $1.2B+). I wouldn't be surprised if AMC sold off more shares and will be financially secure for some time (they were essentially headed to chapter 11 i.e. restructure their finances so they could continue to operate).

in short, yes, the stock price has helped AMC, but no, IMHO, I wouldn't buy shares to try to keep them afloat, especially at the current price. If needed, AMC has other options at their disposal

Debt relief implies the debt was forgiven. The debt was converted into equity. That def provides a longer runway for the Company in terms of cash flow and debt maturities but it also dilutes existing shareholders.

 

[mscanlo]

Debt relief implies the debt was forgiven. The debt was converted into equity. That def provides a longer runway for the Company in terms of cash flow and debt maturities but it also dilutes existing shareholders.

yeah, he was asking about the company itself, not the stock price. getting debt off a company's balance sheet helps the company in this situation.

in this situation, silver lake converted $600M bonds to stock, and was able to cash out quickly with $113M profit.

i'm not opining on stock prices, but just out of curiosity, do you have a finance background?

 

[NateW]

cAblE NewZ!

 

[Todoubled23]

If this even makes it back to the opening print I'm fairly certain it's gonna get stuffed quickly. Big cats unwinding, of course its gonna take a few days and retest to get retail to "buy the dip" (more like a dead cat bounce).

 

[AZOrange]

If this even makes it back to the opening print I'm fairly certain it's gonna get stuffed quickly. Big cats unwinding, of course its gonna take a few days and retest to get retail to "buy the dip" (more like a dead cat bounce).

The puts are so damn expensive!

 

[mscanlo]

If this even makes it back to the opening print I'm fairly certain it's gonna get stuffed quickly. Big cats unwinding, of course its gonna take a few days and retest to get retail to "buy the dip" (more like a dead cat bounce).

to me, this is where it now gets dangerous. the big money sees the opportunity to take it to the normal guy. yes, reddit users proved a point and some had their fun, but most are about to get eaten alive with options trading (and big money backing it).

I hope I'm wrong.

 

[bpo57]

yeah, he was asking about the company itself, not the stock price. getting debt off a company's balance sheet helps the company in this situation.

in this situation, silver lake converted $600M bonds to stock, and was able to cash out quickly with $113M profit.

i'm not opining on stock prices, but just out of curiosity, do you have a finance background?

Yes Silver Lake made out well after having been deeply under water with their bonds prior to this recent rally in AMC stock. But the impact for AMC is how I laid it out above.

Yes I do have a finance background and I have direct knowledge of AMC's credit situation but to be clear I am not making any predictions on AMC stock. I did make a prediction above on GME though.

I don't claim to be an expert though I've worked in high yield credit for a very long time. The market can find new and unusual ways to humble you all the time.

 

[Todoubled23]

The puts are so damn expensive!

Yeah if I were gonna grab a put it would be for April/June as soon as this climaxes intraday premiums should be the lowest you'll see, maybe ever again on some puts.

 

[bpo57]

The puts are so damn expensive!

No possible way to make money on those.

 

[Todoubled23]

to me, this is where it now gets dangerous. the big money sees the opportunity to take it to the normal guy. yes, reddit users proved a point and some had their fun, but most are about to get eaten alive with options trading (and big money backing it).

I hope I'm wrong.

With the help of unregulated darkpools these big guys use it's not a stretch to say "painting the tape" is a very real thing. Propped it up early premarket on nothing, sell it all into the bid opg orders slapping the bids.

 

[AZOrange]

No possible way to make money on those.

I can’t trade it naked apparently.

 

[Cusefan0307]

Meh AMC puts aren’t any better. I think we are done seeing last weeks volatility. Back to the long game.

 

[Orangezoo]

I just opened a Schwab account, and a transfer request out of RH. Only took about 10 minutes online. Might also go Vanguard or another. I just need low/no fees, and fractional share buying. Schwab has it down to 5 bucks.

Transfer to take several days. Hopefully the RH crew will get on it. Not much money in it, but the stampede has begun.

If you have another platform you use regularly you might be able to txfr for free over a certain amount. Schwab covered my txfr fees this morning for me. Zero cost total to move everything but crypto.

 

[Todoubled23]

Meh AMC puts aren’t any better. I think we are done seeing last weeks volatility. Back to the long game.

Short amc still possible? This left gaps everywhere lmao

 

[Orangezoo]

I posted this in another thread but if anyone is looking at an interesting spec stock ( high risk but has potential) take a look at ZOM. Bought at .17 a ways back. I came across them in a pet care article a ways back and the release of a diagnostic product called TruForma. They hired a new CEO this year who has a record of building value for shareholders and have contracted with a distributor. They are setup through 2023 because of the recent gains and expect profitability by 2022. Other products in the pipeline as well. Analyst thoughts are mixed so it absolutely is a spec at current prices. That said thought I would share as it's not just a reddit infused spike stock or crypto meme.

Also I am fully aware of the Carol Baskin article before anyone tossed that out.

 

[OttoinGrotto]

I posted this in another thread but if anyone is looking at an interesting spec stock ( high risk but has potential) take a look at ZOM. Bought at .17 a ways back. I came across them in a pet care article a ways back and the release of a diagnostic product called TruForma. They hired a new CEO this year who has a record of building value for shareholders and have contracted with a distributor. They are setup through 2023 because of the recent gains and expect profitability by 2022. Other products in the pipeline as well. Analyst thoughts are mixed so it absolutely is a spec at current prices. That said thought I would share as it's not just a reddit infused spike stock or crypto meme.

I bought that a while back on your recommendation using my "small trades to lock in small gainz" approach and I made a quick $40 in like 2 days.

 

[PauliePeppas]

$BFT boys...its like getting into Square pre ipo

 

[Orangezoo]

I bought that a while back on your recommendation using my "small trades to lock in small gainz" approach and I made a quick $40 in like 2 days.

Yeah I bought around 5k shares on the cheap and it's made me a nice little chunk of change. Hopefully a lot more or I can at least dump it for 2-300 pct gain if it doesn't take off.

 

[AZOrange]

$BFT boys...its like getting into Square pre ipo

?

 

[PauliePeppas]

?

its a spac...merging with paysafe