Today I Want to answer a burning question that I've seen tons of times over? Um, what is the share price of AMC going to be after the reverse split? Is it going to be Twenty dollars? Forty dollars? Sixty dollars, or even higher? And importantly, how is this going to impact the mother of all short squeezes? And what kind of impact is it also going to have on a wider Market as well? Well stay tuned and let's make some money. And now I'll drive straight in with the combination. So as you can see, I've got two separate scenarios here. Scenario number one is what would typically happen during a usual reverse split or during a business combination, and scenario two is apparently exactly what's going to happen from John Meriwether from the Investor relations department.

Now, there is a slight difference between scenario 1 and scenario Two, which does have a slight impact on the price as well. But I Also want to talk about the tons of different variables that could also impact the true conversion price? So let's start off with scenario number one. This takes the total number of shares in AMC and the total number of shares in Ape as well and Compares that to the market cap frame C and the market cap for rape and effectively creates a hybrid of the two. So with AMC we know we have a flow of 516 million shares with April.

On the other hand, we have a flow of 930 million Now that was actually confirmed by the AMC reverse Split documentation that talks about the Apes shares having 929.8 million issued shares. That means that post conversion Ak-18 converts into AMC will have a total of 1.4 billion AMC shares, then offer the Temple on reverse split will have a 144 million shares in total. Now we also need to look at the market caps for AMC and for Ape for AMC. We know that it has a market cap right now today of 3.11 billion dollars.

Now, Ape, on the other hand, is a little bit funny. There's tons of different sources that have tons of different market caps as well. Some sources have the eight Mark cap at around 3 billion dollars, but some sources have it as high as 5 billion. Basically, what will happen is during the conversion, the AMC and Ape shares combine and the AMC and eight market caps combine as well.

So we'll have a total final market cap of somewhere between six to eight billion dollars. Now, if you take that market cap of six to eight billion dollars, divide it by a hundred and forty four dollars per share. You get a post AMC conversion and reverse split price between 42 and 56 dollars per share. Now let's also talk through scenario two and speak about how scenario 2 differs from Scenario One Well, Peter Harris Tweeted saying that John Meriweather from AMC has said in the event of a yes vote and the judge ruling the conversion can go ahead.

the price of Ape will go to where AMC was last trading at and it confirms saying so Yes, at current prices, it's a large gain for Ape. Effectively, eight disappears and an AMC share is issued for every single Ape share at the current AMC price. Now that effectively means that we have 516 million AMC shares at six dollars per share. Today, we'll have 930 million Ape shares that right now are trading at 1.76 but will be trading at six dollars on the conversion day.

Basically meaning we'll have 1.44 billion shares of AMC at six dollars per share or after the reverse split 144 million at sixty dollars, exactly. So you can see under John Meriwether Scenario: the price for AMC off the conversion in Reverse split is actually higher. It's not between 42 and 56 dollars. It's all the way above sixty dollars per share.

But now let's also talk through all of these different variables that could impact the price of AMC post conversion and reverse split. Now the first and most obvious one is the current price of AMC today isn't necessarily going to be the exact price of AMC on conversion day. Right now, AMC has a market cap of 3 billion dollars and a share price of six dollars per share. But obviously, there's nothing thing that stops a run-up in the AMC price between now and that conversion day.

AMC could convert six dollars. It could convert ten dollars, twenty dollars, thirty dollars, sixty dollars, or even higher. There's no guaranteeing exactly what the AMC price is going to be on the reverse split day. obviously.

And importantly, we could even squeeze before the river split. And we could end up reverse splitting during the squeeze, causing the price of AMC to rock it. Instead of AMC converting from six dollars to sixty dollars, it could be converting from sixty dollars to six hundred dollars, or from six hundred dollars to six thousand dollars. Now, the second variable is the current eight Market Cap.

Obviously, as I said, there's a number of different sources trying to print the eight Market cap between three and five billion dollars, but nobody really knows for sure exactly what the true market cap of Vape actually is, and therefore, it's obviously difficult to tell exactly what the market cap of AMC combined will be during that reverse split day. It could be between six and eight billion dollars. It could be Ten billion. 15 billion.

20 billion. Even higher, Nobody actually knows, and therefore, it's difficult to figure out an exact AMC post reverse split price based on today's data because obviously the data is going to change before the reverse split. and I think the final variable is that we don't know exactly which scenario the AMC reverse split is gonna follow? Is it gonna follow scenario two? or is it gonna follow scenario one? And well, actually, the largest variable of all is exactly how the market reacts to the reverse split price. Exactly what Traders are doing on the trading day a and exactly what happens whether they buy more shares or trying illegally short more shares on the actual day of the river split.

It may open at sixty dollars, but may rock it up and may end up squeezing all the way to 100, 200, 500, a thousand, or even higher per share. Alternatively, the shorts could try and push down the price of AMC but I Do think it's important to remember that whether the price is sixty dollars or six dollars, it's just as easy for the shorts to push the price down. The shorts can easily push the price down from sixty dollars down to five dollars as they can push it down from six dollars down to 50 cents per share. I Think All in all, it's important to remember: the market cap of AMC isn't going to be changing during a squeeze.

It's only going to be the number of shares that are reducing in total. You're still going to be holding the same portion of AMC Retail investors as a whole are going to be holding the same portion. It just means that your Shares are going to be worth more money and that's why. I Also want to talk about why the lawsuit filed by the allies any country Employees Retirement System in February is likely a stall tactic as Billy Twitter he said as stated by multiple analysts including word Bush's own Alicia Reese the Court of Chancery would likely side with AMC if the majority of the shareholders voted for the proposals.

basically saying that if the majority of AMC investors vote for the conversion, it's likely the courts will throw out this frivolous lawsuit. But obviously if the majority of shareholders voted against the proposal, the Judgment wouldn't really matter either way because the reverse split wouldn't be going ahead. Obviously, the reverse split vote is going to be released on March 14th, but AMC as a company may not be able to do anything regarding the vote until the lawsuit is thrown out as frivolous. But obviously, if 90 of shareholders vote for the conversion, then clearly the Ali Jenny Country Employees Retirement System has no idea what they're talking about because the majority of investors clearly want reverse split to go ahead and the lawsuit will be thrown out as frivolous.

But obviously on the flip side, if 90 of investors vote against the reverse split, then the reverse split won't be happening either way. Therefore, again, no need for the lawsuit. But as Billy tweeted, he said, so, what do you actually get and how are Allergeni actually benefiting from this lawsuit? Well, he said, obviously they get extra time to make extremely high interest rates on their stock loans Ali Jenny You're obviously lending out their shares to short Sellers and they want to benefit from these high interest rates even longer and therefore, they want to delay this conversion and reverse split. They likely don't really care which way the reverse split goes, they just want more time to continue lending out their shares and trying to make a little bit more money now.

Finally, I Also want to quickly touch on what's currently going on in The Wider Market and what Jerome Powell said today and how it's going to impact the wider Market As a whole, Drone Power said the interest rates are likely going higher than previously thought, which is obviously spurred on more fear in The Wider Market. Now on top of that, to again add to that level of fear, Meta or Facebook have also announced plans to cut thousands more employees. as soon as this week. you may remember, Metro or Facebook has already laid off over 10 000 employees and it seems that another round of layoffs is yet again approaching this week.

And finally to again add to that fear, we've had a massive announcement from JP Morgan that could potentially spell the end for the stock market. JP Morgan are effectively estimating that a market shock of one to five percent would be Amplified by those zero days to expiry call options. Basically, if the S P 500 was going to fall between one and five percent, the zero days to expiry options would cause a Delta run wind of 7 to 14 billion dollars, which would translate into a total down day of four to eight percent in the S P 500 in One Singular day. But in the worst case scenario, if the S P 500 was going to have a five percent down day with the massive massive Delta unwind which could be costing as much as 30 billion dollars, that could lead to a 20 S P 500 crash in one single a day.

Basically saying because the massive compounding we're currently seeing in these zero days to expiry call options instead of seeing a three or four percent down day, we could see 20 loss from the S P 500 in One Singular day. This is obviously something I first hypothesized a few months ago and last year as well and it's now just been confirmed as possible by JP Morgan Basically saying if we do have a very bad day in the S P 500, it would be Amplified massively with the giant expirations of those cool options that would be expiring on that same day again, cause a massive panic and a massive massive crash. But guys, be sure to let me know what you think down in the comments below. And as always guys, be sure to ding that notification Bell because that way you'll be alerted when upload a new video.

Cheers!.