$AMC Entertainment (AMC.US)$ if share price was accurate…deb...

NorcalSalsa : Hence why they can’t let it run

Tnkr : If shorts stop shorting and instead going long, we can literally all be rich. think about it, literally free money for everyone. why do ppl hate money and make this hard. stop shorting and go all long. this is not for amc. we can make apply this to anything, penny stock, sh1tcoin and everything in between. we can make world peace and everyone rich. i guess not everyone is as smart as apes.

Warren E Buffett : Not sure what is meant by that statement, are you stating that through its current operations $AMC Entertainment (AMC.US)$     Is generating enough net income to offset its debt?

If you are stating that, please see the screenshot attached, AMC has not generated positive net income in over five years.  Simply put, AMC has not generated a single dollar of profit in over five years.  they may be able to pay down their debt overtime and still operate at a loss, but as I’m sure you’ll admit, it’s impossible to pay off the total of ones debt if you don’t have the money to do so, which AMC clearly does not as they’ve been operating at a loss for over five years

If your comment was in reference to today’s announcement about AMC’s debt restructuring, please understand that a debt restructuring in no way wipes out debt. It is simply a refinancing of its current debt. Imagine you have a credit card that is maxed out, you cannot keep up with the monthly payments, And you are on the verge of defaulting, and as a result, facing the seizure of all your assets by the bank, so they can liquidate them and recover the money they lent you (basically on the verge of going into bankruptcy and having your life destroyed). But at the last moment, another credit card company approaches you and says they will give you enough money to pay back the first credit card company and allow you to pay them off over the next five years.  

This is exactly exactly what is happening to AMC, they have the same amount of debt they had yesterday (technically it’s a lot more because since they are at extreme risk of failing long-term, they must pay a high premium on that debt)

Warren E Buffett : If you’re interested in learning more about how they restructure their debt, you can research how public companies Have an option of accessing what is called the bond market as an alternative source for access debt.

So long story, short, today’s announcement means they have just as much if not more debt as they did yesterday, they just have a little bit more breathing room to pay it off. If however, they continue on the current trajectory of being unprofitable. This will not happen and ultimately they will be forced into bankruptcy.

Also, not really sure what you mean by “if share price was accurate”. Share price has absolutely nothing to do with the amount of money accompany has, is purely a representation of how much a piece of that company is currently valued at on the open market.  

Think of it like owning a piece of real estate, not a house that you live in, but a property you rent out to tenants. What is the value of that piece of property? How much is it worth? Let’s say it’s $1 million in there are 1 million shares of that piece of property that one can own. If you owned 100,000 shares of that piece of property it would be worth $100,000..

BUT, where does that come from? It would be a result of how much income that property produces from rent collected from tenants.

Now, applying the same logic to AMC, what do you think the value of a company is that has not made a single penny in over five years?

That’s right! It’s going to be extremely extremely low.  You are basically investing in an asset that has been unable to produce positive income, maybe you believe that this will turn around, and if it does great, the share price should go up to reflect reality, but the term, this company is valued way too high given its financial situation.