AMC (NYSE: AMC) stock price has the attention of all investors as they eagerly wait for the court’s ruling on the APE conversion. Surprisingly, APE stock has been showing very little volatility for the past few days. It seems that most of the traders have already taken their positions based on the upcoming decision.
On Monday, US stocks remained sideways as the benchmark indices kept battling key resistance levels on their charts. AMC stock rose by 0.95% during the first trading session of the week after a pullback on Friday. The latest analysis suggests the stock may pull back to a key level before APE conversion.
The AMC preferred equity units, also known as APE, were given to AMC shareholders last year. These represent the preferred stock of the company and give its holder priority in case of bankruptcy. The company plans to convert this preferred stock back to common stock, but a few investors have approached the court to block this conversion.
As described in my last week’s analysis, Citi and other Wall Street analysts are expecting the court to rule in favor of AMC. This will mean a conversion from APE to AMC, which will converge the AMC stock price to that of APE stock.
According to the latest news, while the two-day hearing at the court has been completed since last month, Vice Chancellor Morgan Zurn has yet to announce her decision. The date of the announcement has also not been set. This is giving more time for the speculators to take positions in the market.
AMC stock forecast is not looking very bullish ahead of the conversion of APE to AMC as APE price is lower than AMC at the moment. This means that the AMC price may decrease if the conversion goes through. However, it is not a good idea to short AMC shares as it has a habit of squeezing out the short sellers.
In the meantime, I’ll keep sharing updated AMC stock price forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Jul 11, 2023, 09:04 BST 09:04