Adam Aron just took it to Twitter announcing they (AMC) have seen no reliable information on synthetic AMC shares.
The CEO said “inbound tweets ask over and over for a share count”.
He then said, “some of you believe the count is much higher. As I’ve said before, we’ve seen no reliable info on so-called synthetic or fake shares.”
Retail investors have been adamant about getting a proper share count due to the ongoing and excessive naked short selling of AMC Entertainment stock.
A share count could expose the overleveraged amount of ‘synthetic AMC shares’ and force institutions to take accountability by closing them – triggering a short squeeze.
There are many opinions going around in the community after the CEO’s announcement.
Let’s discuss it.
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Shorting in AMC never left
Before we get into AMC’s synthetic shares, it’s important to note that AMC has accumulated more short sellers than ever before.
When AMC reached an all-time high of $72 per share, its short interest had dropped from 23% to 20%, then to 16%.
AMC’s short interest has been rising ever since that drop, giving the stock plenty of room to squeeze shorts from their positions.
So, shorts never really left, despite mainstream media calling the short squeeze play dead.
The conflict of interest between the media and hedge funds is something retail investors should all be aware about.
But most of you already know this.
Is Adam Aron really oblivious to the amount of shorting that has taken place in AMC Entertainment stock?
Or is he not allowed to speak on the matter due to the position he’s in as the CEO of the company?
Overstock CEO Patrick Byrne did, despite the ridicule and investigations he received.
The only difference is Adam Aron has an army behind him willing to support a fair market for all participants.
Similar to Gary Gensler, it is in my opinion that Adam Aron may simply be maintaining the status quo.
But I’m curious to learn what you think.
Proof of synthetic AMC shares
Adam Aron says they have not seen any reliable information on synthetic AMC shares.
But most of the proof are in the FTDs that accumulate every month when there aren’t enough shares to meet contractual obligation.
There have been more than 16.5 million AMC FTDs this year through May according to research.
Naked short sales and selling an asset without borrowing it first are two of the leading causes for failures to deliver.
These naked shares are the shares the CEO isn’t counting – or in other terms, what shareholders want him to investigate.
He stated on Twitter AMC knows only of 516.8 million shares.
And while shareholders know this legal count as well, it’s the ‘illegal’ synthetic AMC shares the community want brought to light.
But it seems the CEO isn’t interested in combating a corrupt market.
It seems he much rather remain focused on the business aspect, which too is understandable.
However, not meeting shareholder demands could have serious repercussions in the future.
Is Adam Aron risking AMC’s future by not tackling the problems shareholders are facing in the market?
I’d love to know what you think.
Leave your thoughts in the comment section of the blog down below.