They sold for a huge loss. But the shares were bought up today.Interesting timing as massive property developer and prior world's largest cinema operator and largest AMC shareholder, Dalian Wanda Group, its' chairman Wang Jianliang and his fellow world top-10 wealthiest colleague each resigned from AMC's board and jettisoned all but <1% of their AMC shares. Only inspired by purported central government pressure and goals to deleverage and cull non-mainland assets ... ?
www.wsj.com
Wanda spent $700 million to buy AMC in 2012, and the company said it has doubled its money. Wanda started selling AMC shares in December and has accelerated those sales this year as the Reddit-fueled frenzy continued to drive debt-laden AMC’s share price higher.
AMC and Wanda’s Unlikely Happy Ending
Wanda’s AMC acquisition has finally paid off. That mostly comes down to luck though—the deal still looks mostly like a cautionary tale of overreach and political risk.
No doubt the timing of Wanda selling now on their 2012 AMC investment is interesting, yet why now? Was it really a loss for Wanda? No operational profits since 2012? Wanda sold all but the remaining 1% of its’ AMC shares at a $14 avg b/tw 5/13-18, higher than shares volleyed back and forth today at lower prices ($13.68 close, $13.80 AG).
No recommendation regarding VW’s voting ADR VWAGY vs preferred ADR VWAPY, yet each ran up nicely since Oct.
They “claim” they made 2x profits. But they’d been unloading the stock since it’s $3-5 price range in December, can’t see how they made money when they bought in fairly high.
I think some big movies are getting bottle necked back. Like Bond and Dune, for example.
Acknowledging AMC's unfortunate pandemic performance and ongoing massive debt, just wondered whether you had any insight on Wanda's annual operational net profit (loss) derived from its' AMC stake and actual total gain/loss since 2012. Got it, whether Wanda's AMC investment actually resulted in a huge loss, possible breakeven, or maybe some profit remains TBD.
Unclear, Wanda's experienced the same type or similar amount of central government/regulatory scrutiny as some mainland big tech/fintech hybrids. Certainly some, yet most mainland and east Asian analysts view Wanda's AMC divestiture spurred on by the central government general push for mainland companies to pull back from western market investments. However, Wang's also viewed as being relatively close with the central party boys and less apt to rock the boat which feeds him and the families of Xi, Li, et al.
Beautiful. I was in disbelief when I saw LINK at 17 Sunday morning. This thing should have never been below 20 ever again. Buying anywhere sub 25 was a total gift. I bought more at 17, sold at 27 but so happy to have my original position. MATIC looking great too.
