Quote:
Originally Posted by MTG#10
I understand it's smart for the company. But the timing is shit, especially after he promised no more dilution during the rest of the calendar year. The constant dilution coupled with the huge bonuses handed out to the top brass is what originally soured me on the stock. But apparently this was actually done in April before the share dilution promise was made.
|
Regardless of what the guy may have promised (or more likely indicated as an intention), when the market moves like it has, no rational person would assume that it's some binding commitment.
I don't follow this stuff at all as it's just to the point of complete ridiculousness, but I read the below this morning:
Quote:
The company “highlights first and foremost in their disclosures that the proceeds would be used for debt reduction, a change from recent disclosures which focused on acquisitions,” they said.
AMC’s bonds were among the top gainers in the U.S. high-yield market on Thursday, setting fresh highs. Its second-lien bonds due 2026 rose 1.5 cents on the dollar to a new high of 99, according to Trace bonds trading data. AMC’s senior subordinated notes due 2025 also rose 1.75 cents to 81.75.
AMC “had an unsustainable debt level and is chipping away by issuing equity, said Michael Pachter of Wedbush Securities in an email. “I think that’s smart to ensure that they remain healthy so they can thrive as things return to normal.”
|