AMC - APE stock splitSo AMC decided to do a clever trick and take advantage of the hype coming back into stocks and even meme stocks. Retail traders have taken a hit, with many retail-heavy companies like Gamestop, Coinbase and Robinhood, etc., taking massive hits. However, GME has been doing well, COIN doubled off its lows, and HOOD looks decent.
As stocks are bouncing and the bull could be back, AMC decided to do an intelligent stock split by issuing new preferred stock they can sell. They named it APE, like the Apecoin, a popular NFT-related token, which could create a lot of hype around it. Essentially, it is a trap for retail to go and buy APE without hurting the price of AMC as much and allowing the company to raise the cash it needs. Last year, AMC dumped all of the company shares onto retail on the way up and raised 2B dollars that it has essentially spent and needs fresh cash as it still has a lot of debt. At the same time, they made this look like an airdrop, and it is like an airdrop, but one in which the company controls the majority of the shares.
The company's price looks pretty good regarding TA, as it bottomed nicely. First, it had an 86% correction, which means the entire bubble popped, and there is no froth in the market. It retested some key levels and then reclaimed some key support levels. Since May, it has essentially been in accumulation mode, and today we had the confirmation of the breakout, as the market initially gapped down and then had a massive rally. In my opinion, this rally could last for a while, with the price increasing to 50-60$ before it goes back down again. It wouldn't be surprising if we saw the market go up for the next two weeks and top close to the date of the airdrop/split (22nd of August).
