AMC ENTERTAINMENT: Keeps On Giving (+7%)

. . . NOT!!

Executive Summary

• Neither fire alarms nor general lactation could make this trade work.

• The ringing has finally reached our own ears.

1. Recap Situation

We bragged and wanted to show how to catch the hottest cow. We didn't. AMC turned into a crazy cat, and we are out.

We had been firmly convinced that the Delaware court would approve the court hearing on the AMC/APE share class merger and the proposed settlement. Several favourable court and market indications have contributed to our above-average conviction.

The expected value of the trade was extraordinarily high at 104%, and the risk-return of 1:7 was worth all the chaos.

Check out the original BrainDozer article below.

AMC: Keeps On Giving

2. Why Now

The immediate investment thesis surrounding the court decision on the settlement and merger of the two asset classes, AMC and APE, is now out the window. Instead of share price conversion, we got more share price divergence.

The Delaware court's rejection of the settlement has turned the case into a game of rando…