Unexpected Victory for Retail Investors in US Stocks! AMC ENT Preferred Stock Conversion to Common Stock Application Rejected, Soars Nearly Doubles After Hours

After the market closed on July 21st, the application of AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT to convert its preferred stock into common stock was rejected by a judge in the state of Delaware, USA. This development is seen as a huge and unexpected victory for retail investors, and AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT's stock soared more than 93% after hours.

In March of this year, AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT proposed to convert its preferred stock into common stock. The purpose of this arbitrage transaction is obvious: AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT can profit $5 per share from it. However, this move would dilute the rights of retail investors who saved the company from the brink of bankruptcy.

The ruling on July 21st came as a surprise to investors and analysts, bringing AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT back to square one in its capital restructuring efforts. Due to rising interest rates making financing difficult, AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT has been eager to convert APE and issue new shares for financing.

APE has been the subject of litigation between the parties since February of this year. This case has caused a rift between AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT and many retail investors who participated in the "retail investor rally" and boosted the stock price during the height of the pandemic, saving this struggling theater chain.

The company issued preferred stock APE last year, including issuing 30% of the shares to Antara Capital LP, and has been trying to convert it into common stock since then.

About 70% of the common stock shareholders who voted on the original APE conversion plan in March expressed their approval, although the number of participants was relatively small. However, many other retail investors either opposed the dilution of their shares or simply did not vote on the company's proposal. Hundreds of retail investors wrote letters to the court opposing the settlement agreement, and four of them attended the settlement hearing in June (one of them even brought a lawyer) to formally express their opposition.

A shareholder class action lawsuit led by pension funds and retail shareholders accuses AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT of implementing an illegal corporate engineering plan aimed at excluding its investor base. This lawsuit specifically focuses on the "mirror voting" clause, which requires the depositary company to vote on all preferred shares based on APE's actual voting ratio.

On Friday, as AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT soared, other "retail investor stocks" also followed suit in after-hours trading. Among them, GameStop rose by 6% at one point, and WKHS rose by nearly 2%.

The good news that AMC ENT ENT ENT ENT ENT ENT ENT ENT ENT ENT received after Friday's market close came at a time when U.S. retail investor stocks were skyrocketing.

So far this year, retail investor ETFs have risen by a cumulative 61%. Among the star retail investor stocks, there are some super winners whose gains far surpass those of NVIDIA: Bitcoin miner Riot Platforms has risen by 439% cumulatively, AI lending platform Upstart Holdings has risen by 308% cumulatively, Coinbase has risen by 196% cumulatively, and electric vehicle stock Carvana has risen by 740%.

It seems that retail investor stocks are on fire, but market participants who are bearish on the U.S. stock market believe that a comprehensive perfect storm is brewing.

At the end of 2021, retail investors rushed to buy in, but then encountered a brutal bear market: when retail investors flocked to the market at the beginning of the year, the VIX index and the ratio of put options to call options were at low levels; but by early January 2022, the three major stock indexes had all peaked, and the S&P 500 had fallen by 19% cumulatively in a year.