AMC Entertainment (NYSE:AMC) shareholders are now looking to the CEO for answers after the company’s stock has fallen more than -43% since its new proposals went into effect.
The movie theatre company, which was up between +20% and +40% earlier this year, has now fallen more than -79% this year-to-date.
At the current price, shares would be worth $0.718 pre-split, putting the company alongside other retail favorites such as Mullen Automotive (NASDAQ:MULN), respectively.
Like many other retail favorites, AMC Entertainment has been a victim of manipulative short selling.
While ‘no’ voters criticize ‘yes’ voters, the approved proposals will now allow AMC Entertainment to raise money by selling up to 40,000,000 shares.
The company announced on Wednesday that it has entered a new agreement with Citigroup, Barclays, B Riley Securities, and Goldman Sachs to periodically sell shares.
“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”
While the company was just thrown a major lifeline from investors (yet again), shareholders have expressed concerns towards the CEOs plans, which has only caused shares to plummet.
Resentment grows as shareholders question the CEOs silence as well as swindling influencers who have been responsible for continuously leading on investors.
On social media, the CEO has focused his attention away from retail investors and doubled down on promoting the company’s latest theatrical developments.
The question lingers — will AMC squeeze?
Also Read: More Than 50% of AMC Stock is Now Trading Off Exchange This Month
What Happened to AMC’s Short Squeeze Post RS?
Anonymous influencers on social media have been misleading retail investors for quite some time now, neglecting all signs that could further hurt retail’s pockets.
Their answer to their theories? Another theory..
Investing in AMC Entertainment today is a marvelous way to crowdsource the movie theatre chain, especially if you’re a movie lover.
Is an AMC short squeeze still possible?
It is if investors are willing to replicate the events of 2021 when daily volume was between 700m and 1bn.
Rising share prices created by sheer momentum is what triggered short sellers to close positions in 2021.
They had no option! Price was heavily going against their bets.
However, momentum has come down quite drastically since then with no signs of building buying pressure.
Retail investors were able to create huge demand back then despite heavy off-exchange trading.
Even with 50% off exchange trading on 1bn volume, that’s still 500m in the lit exchange; much better than today’s average volume of 9m with 4.5m in the lit exchange.
🔥 500m > 4.5m.
Financial Times reports that in 2023 so far, AMC short-sellers made a profit of $407m while GameStop short-sellers have lost a little over $80m.
Investors must identify for themselves whether the probabilities of a short squeeze are stronger now more than ever, or whether the probabilities of a short squeeze are weaker now more than ever.
“Is it better to save some of my remaining capital and jump in once I see momentum brewing? Or am I okay letting my investment go to zero in a worst-case scenario?”
In the end, AMC Entertainment is a company and will do whatever it takes to survive before it thrives.
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