- AMC's fans are now counting more bananas after recent trading gains for their accounts. AMC's price spike higher has paid well. Congrats!
- Now it may be prudent for traders to recognize the fundamentals for AMC have not changed materially from purchasing the Hycroft ownership interest.
- In fact, the relatively small investment into Hycroft will not move the needle for AMC's overall corporate finance structure. Investors may actually have governance concerns after this questionable action.
- The Hycroft deal is relatively immaterial, but CEO Adam Aron has indicated that other future deals may be forthcoming. Fundamentally, AMC is in big trouble with $5B of looming debt payments starting in 2023.
- However, there may be one way out for AMC. Discussion of this possible pathway for AMC's survival in the Wall Street jungle follows.
For further details see:
AMC: The Stock's Reddit 'Apes' Counting More Bananas In Accounts, For Now