DWAC - Sell Your AMC
- There's literally no good reason whatsoever to own this equity.
- None.
- Here’s what you should own instead.
Sell your AMC ( AMC ). As of this writing shares cost over $10 per share. If you want exposure - and that is on you - then simply buy the AMC preferred ( APE ) instead. Three ways to think about this and any one of these three offer hugely positive expected values. First, just sell the stock and reinvest the money in literally anything else or nothing else. That's worth far more than the zeroish per share that the AMC shares are worth. Secondly, agnostic to their value, just switch out AMC for APE at a $:$ ratio, which keeps your money in your favored stock, but lets you own more shares. Thirdly, trade out of AMC into APC at a 1:1 ratio - that gets you exactly what you had before in economic terms, but lets you pull some cash out of this investment (with some possibility that such cash will be all you ever see from it).
This idea is part of a basket constructed over the past few years comprised of suboptimal ways to express bad ideas.
Sell your Nikola ( NKLA ).
- June 22, 2020
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Sell Your QuantumScape ( QS ).
- December 10, 2020
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Sell your SPAK .
- January 19, 2021
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Sell Your Tilray ( TLRY ).
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Sell your DWAC .
- October 22, 2021
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If you own ARKK , sell it; if you don't own ARKK , short it.
- December 22, 2021
SA
Each declined by half or more - AMC will too. And the best thing about this opportunity for AMC holders is that you can immediately, risklessly capture its overvaluation today.
Caveat
In the short term, markets are determined by the behavior of market participants and in this case the short term is determined by the behavior of insane market participants. Anything can happen. The spread between the common and prefs could tighten, stay the same, or widen. But the spread should eventually go to zero or negative (of course both securities going to $0 is one way that might happen).
Conclusion
Do not buy or hold AMC (can probably just end the sentence there but I'll continue) for $0.01 more than the price of APE.
TL; DR
Sell your AMC.
For further details see:
Sell Your AMC